CRYPTOCURRENCY TRANSPIRACY
Several folks have not yet reached the bottom of the flush-out, which is the last one. Just because a market is bottoming out doesn't mean we should be deterred by a major pessimistic headline that appears. Nobody can predict whether FTX will be in the same scenario as it was, but in a down market, you learn that the money stops flowing and the tide recedes. All of these cryptocurrencies run out of steam, and then you can see who is resilient as the flood recedes. Who is being dishonest and who is being honest will survive at that point. They will be the ones benefiting from the current bull market. The crucial component of this happening.
The Lehman brothers placed some really bad bets in 2008, if memory serves. It declared bankruptcy in 2008, which was a sort of historic event for the bank. From there to the bottom of the market, it took around six months. This leads me to believe that the market hit its bottom about 5 to 6 months after the collapse of the FTX. Whether it will be $12,000 or $9,000 is not yet known with certainty. Enron and Worldcom were present during the dot com bust. These two businesses were engaging in questionable bookkeeping practices. When the bear market hit, they were producing a lot of items that were extremely similar to FTX, but they were unable to conceal it due to the bear market.
You may look back to Bernie Madoff, who kept tricking investors into believing they were earning incredible gains, but when the bear market arrived, buyers began to leave the market. Consequently, he was unable to carry out his pyramid scheme. As the Lehman Brothers crisis started on September 15, 2008, we noticed that the market fell and then briefly rose. If you see that Bitcoin is attempting a small bounce. But what actually occurred was a cascade sell-off that drove the market to its low point in March. You should be aware that the period from September to March is six months, which led me to believe that there is still some downside potential for the market due to impending deleveraging.
There are businesses out there that are concerned; they made an investment with FTX and are currently in trouble. To reduce their financial misery, they will need to sell off their holdings of Bitcoin, Ethereum, and other coins. Due to the systemic deleveraging that must occur, there will be pressure on cryptocurrencies generally over a period of several months.
In this scenario, the FED won't engage in quantitative easing, but another event will signal the bottom of the cryptocurrency market: the establishment of a transparent regulatory framework. Regular investors must be protected in a way that allows for the continuation of this scenario. When you have that legislative structure in place, large money will start investing in cryptocurrency like never before.
A nice article thanks for sharing with us.
We just have to keep our eyes on the market and lets hope for the best. Thanks for sharing.