Sunday, December 5, 2021

Cryptocurrencies

Crypto was taken to the woodshed this weekend. Reason. In general, markets are in a risk-off mode currently. Add to that low weekend liquidity and an overleveraged (high open interest & positive funding rates) market in crypto, and you have a recipe for volatility (liquidation cascade). Nothing I have seen so far makes me change my long-term view on the crypto space yet.

(When in doubt, zoom out. Go from the hourly to the daily to the weekly to the monthly chart and get some perspective).

My personal targets this market cycle for the cryptocurrencies I own therefore stay as follows.

ADA ($ 10), BTC ($ 350.000), DOT ($ 300), ETH ($ 25.000) and XLM ($ 4).

Crazy, right? Would be great if some of these targets would hit in 2021. Or if you believe in lengthening cycles and diminishing returns somewhere in the period December 2021 - May 2022.

If not, no problem, I'm not in a hurry. I'm hodling. If need be all the way down to zero. There is always the next cycle.

Let's see where we go in the near time. Whatever happens it will be a hell of a ride.

Important. Investing in crypto is extremely risky. Therefore don't invest what you can't afford to lose. As a consequence I'm prepared for my investments in crypto to be reduced to zero.

Don't hang your hat on this kind of speculation. It will probably be wrong. 

This is not investment advice. Do your own research. Please also read the disclaimer at the bottom of the blog.