Posts about Crypto
With another black-swan in crypto and another leg down, this time due to FTX. We are now officially in the second-longest bear market ever, an achievement I do not know whether we should be proud of. Especially as with the current sentiment globally, this could very well be the most brutal and longest bear market.
Firstly, what is a bear market and how to define it? A bear market is basically a long period where the price remains significantly below the recent ATH. There is no fixed negative percentage to define one (stock markets use 20%) and its measured from ATH to the bear market low.
As we can now see that we are indeed longer in a bear market than during the 2018 “crypto winter“, even if we have hit our bottom right now (which is highly unlikely).
To become the greatest crypto bear market we are not too dar off either, the 2013-2015 bear market took 415 days, which would put us in early January which is very likely to still be in a bear market.
So be happy as you can soon call yourself a survivor of the most brutal and most long crypto bear market in history and that is not easy. Millions of people left the markets and we are truly the last ones standing. For coming this far and possibly even further, you all deserve a pat on your back. Well Done!
I know that we are in a bear market and that the bear can be frightening, particularly around capitulation moments, like the capitulation in June with Luna, 3AC, and Celsius, and now again with FTX. The Fear & Greed index is stuck at Extreme Fear for a reason.
Yet, assuming people did not buy terrible projects or overinvested, I dont fully understand why people who invest for the longterm are so stressed about crypto and worried about short term price action.
As far as I understand, most of us agree that:
Crypto adoption is at all time high.
These are good prices to buy good projects like Bitcoin and Ethereum for the long-term.
Good cryptocurrency projects like Bitcoin and Ethereum are here to stay, so they will survive the bear and appreciate in price and make new all time highs.
Remember, Bitcoin is by far the strongest asset since 2011.
Snapshot as of 18 November 2022Right? Or is my understanding incorrect here? I think we are here because we believe in crypto and these are prices many of us dreamt of.
Now that we are down ~77%, it also makes absolutely no sense to sell. So isn't the bear market as straight-forward as it gets: accumulate and wait?
I love staying up to date on what happens in the world and in the crypto space, so I read a lot of news and browse /new here regularly. I have started to get annoyed with the quality of the news posts that cover crypto, however. For instance, a lot of crypto news seems rather inaccurate, seems to lack substance, and/or seems unnecessarily sensationalist.
If you agree, why is this? Is this just a general news problem or are these quality issues more severe in this space? I'll give a few examples from just this week below to illustrate what I mean.
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Example 1: How mainstream (corporate) media dealt with the FTX Meltdown
The most crazy example is how mainstream media dealt with the FTX meltdown. Rather than covering FTX's fraud and how they scammed millions of users, the media chose to focus on Sam Bankman-Fried's plans to save the world, even though Sam already admitted his woke behavior was just a front to appear likeable.
Investing.comExample 2: Sensational headlines
A lot of the articles use insane sensationalist headlines. For instance, a recent Forbes post linked Binance's recovery fund to Terra Luna in the title but never addressed why they mentioned Terra Luna, likely because there was no reason other than to have a sensationalist headline.
Example 3: A lack of substance
A lot of news posts are not really news posts because they lack substance. A prime example are all these news posts about Charles Hoskinson because he wrote a sentence on Twitter somewhere. These often use words like "slam" or "destroy".
A contentless article based on a single sentence on Twitter:
TwitterThe same articles get written whenever Elon Musk makes a Twitter post, such as the one below because Elon wrote a single sentence on Twitter ("WSJ giving foot massages to a criminal").