Prepare and get ready for significant volatility. The downside is going to be major. Since BITCOIN has never gone through an interest rate spike and rampant inflation, it is hard to see how BTC and ETH will perform.
Don't panic BUT get concerned. When it rains, it rains on all. I have moved both BTC and ETH to neutral. Holding current positions, but not adding or initiating new buys until we see just how nasty this selling becomes.
The biggest "new" thing of the week is how many investors/traders believe that inflation, higher interest rates and geopolitical events don't matter. Yeah, right!
BITCOIN WEAKNESS? COULD THE CAUSE BE SHORT SELLING AGAINST BUYING THE GRAYSCALE BITCOIN TRUST? THE GBTC TRADES AT A 25%-30% DISCOUNT TO CASH BTC.
Let's be straight; there is nothing new. War? Yawn. Inflation? Yawn. Pandemic? Yawn. Oh, 30 year mortgage rates just topped 5%....first time since 2013. That's new. Markets are very VERY quiet.
IT'S THE END OF THE FIRST QUARTER OF THE YEAR. FULL SCALE "WINDOW DRESSING" IS ON. FUNDS MARKING PORTFOLIO PERFORMANCE A HUGE REASON FOR THE EQUITY RALLY.
END OF THE FIRST QUARTER COMING UP. LOTS OF MONEY BEING PUT TO WORK AND PORTFOLIOS BEING "MARKED UP" (window dressing). WAR, INTEREST RATES AND INFLATION STILL MATTER. BE CAUTIOUS.
THE NEXT FEW MONTHS ARE GOING TO SHOW HUGE INFLATION SPIKES. WILL THE FED STEP UP THE RATE OF INTEREST RATE INCREASES? WILL THE BOND MARKET DO THE FED'S JOB FOR THEM?
U.S. treasuries and gold got a huge burst in a flight to safety. It won't last. U.S. interest rates are going up (bond prices down). Inflation is getting hot, hot hot. Expect interest rates to surprise to the upside.
The markets, in a flight to safety, have cut interest rates just as the Fed was going to raise rates. Inflation is going on steroids & there will certainly be social unrest & backlash.