So bear with me (pun intended), for I’m going to spell out some really concerning things I’ve observed and have been thinking about in the last week which I’ve compiled together to hopefully wake some people up. However as always please do not consider this as financial advice, for these are simply random observations from a random guy on the internet. Please do your own research and find what investments might be best for you.

1. It’s not just 16-year-olds in their basements that are Degens

Even when the market is crashing like crazy, what I’ve found amazing is how many people are still continuing to take leverage and still continuing to get liquidated. To date in the past 24 hours, there’s been roughly $383 million more in people getting liquidated, and this rate really doesn’t seem like it’s letting up:

On top of this, we’ve learned that platforms like Celisus, and so-called “smart money” like 3AC were taking great amounts of leverage, which basically screwed over their investors. This leads me to my next observation:

2. If you decide to do CeFi, transparency is key

When communications from a platform go dark, that’s a really bad sign. The shining lights after this latest market dump responded quickly and clearly — Crypto.com, Midas, and Voyager to name a few. And I think this transparency is important, whether the news is good or bad. One example is Coinbase, which announced a layoff of 18% of its workforce. Even if it’s not good news, it definitely shows a level of transparency that at least lets investors know how the platform is responding to the market and what it is doing with their funds. Other platforms, such as BlockFi haven’t really communicated that much as to how they’re responding which doesn’t bode well for investors.

And if there’s no official information coming out, then you have to read about them on crypto twitter, which is never a good thing.

3. Because everything is pretty much tanking, it might be a good time to get out of your shitcoins.

There’s quite a few losing bags that I’ve held for quite some time, but with ETH and BTC going so low, its actually made it a lot more attractive for me to turn my alts back into blue chips. Case in point for $LOOKS, which has had recent price action compared to USD look like this:

However, if you look at the price to ETH, it looks freaking amazing:

So if one of your goals during this bear market is to stack up and accumulate as many blue chip tokens as you can, this is something definitely to consider, especially if you’re one of those that believes that the bear market is going to wipe out 99% of alts.

4. After the fall of UST, people still haven’t learned their lessons with stablecoins

I’m not here to tell you “I told you so,” because honestly I really want to see algo-stablecoins work. But In the past couple of days, it’s concerning to see stablecoins such $USDD (which is currently ranked #52 in total marketcap) depeg pretty significantly:

Furthermore, even though it looks like it’s peg is restoring, overcollateralized stablecoins like $MIM also appear to have been put at risk, dropping to the $0.91 range earlier today:

Like I said before, I do NOT want to see these fail, but these stress tests I’m sure are making people shave years of their lives.

5. A lot of OG’s will tell you that this market crash is happening a lot quicker than crashes in the past, but I don’t think that’s necessarily true.

I have heard consistently over and over again that this market crash is happening at a much more of an accelerated pace than crashes before. Since we’re still actually in the bear market I think these comments are pretty subjective, but it definitely peaked my interest to see a few of the last BTC crashes to see how long it was before prices really bottomed out. By far, probably the most recent 1-day drop was in March 2020, when in a single day, BTC dropped by roughly -38.98%:

Comparing this to the most recent stumble that happened this past week, over a 1-week period, BTC lost a total of -31.93%, with the biggest single day drop on June 13th, at approximately -15.55%. For a numbers comparison, if BTC experienced a -38.98% single-day drop last week instead of a -15.55%, it’d be like BTC falling from 30k to 18k in a single day. Regardless, does this still suck? Of course it does…but it’s a little disingenuous to say that this current crash is happening at a faster pace. This leads me to my next, and perhaps most depressing point:

6. Unfortunately, I don’t think we’re at max pain yet

I know there’s a lot of hopium out there with people speculating that we’ve hit the bottom, but honestly I don’t see any indication of how we’re there yet. There’s no indication that the economy is under control and the macro environment keeps spitting out more and more bad news. Some of the smartest guys in the room have called that they were expecting the BTC bottom to be around 25k, but since it smashed through that floor, there’s really no holds bound and we’re sitting in uncharted, extremely volatile territory here.

This, compounded with the fact that these large red candles have happened so quickly, I don’t think it matters how much positive news we might get — the bear market is going to keep prices crashing.

Conclusion:

Let’s face it, we’re going to have to get ready for a rough few more months at least. To paraphrase Benjamin Cowen from the Cryptoverse in reference to alts — when prices go down 85% it still might not be a good time to buy, because they could easily go down another 85%.

This all being said, I hope I’m wrong and I hope that the bulls come back. But in the mean time, it’s time to get ready for hibernation. Thanks again for reading, if you've enjoyed reading this article, please consider following me on twitter to get all my latest posts and updates: https://twitter.com/CryptosWith