The crypto markets have entered a highly unpredictable phase. There are so many contradictory market forces in play that it’s hard to make any short-term market predictions.
The SEC is going after Coinbase. Coinbase is fighting back. Blackrock (among others) applied for a bitcoin spot ETF (with bitcoin as the underlying asset). The SEC said no in a matter of days (funny how quickly the SEC can move when it wants to). The Fed paused rate hikes. And now it looks like it’s going to raise them again.
In the midst of all of this, the crypto markets have been all over the place. Bitcoin jumped past the $31,000 mark on the hope an bitcoin ETF would be approved. As of this writing, bitcoin is trending down towards $30,000 on the news the SEC feels the ETF applications are “inadequate.”
Altcoins are struggling right now. Between the regulatory pressure and the macro uncertainty, smaller coins are struggling to gain traction.
I had planned on recommending a coin to you today. But between the crazy market conditions and the general lack of liquidity during holiday weekends, I think it makes sense to hold off for now. It’s a bit too risky to buy into a new position right now. I’m comfortable with our existing portfolio. I believe it’s set up for long-term success, so let’s keep holding there.
I’ll recommend a coin to invest in next month (I already have a few in mind). But for now, let’s sit tight and let the markets settle down a bit.