Countering the Crypto Crash & Predicting the Future

Written by my brother Grant Lapinski, he writes often for an investment group and I am trying to get him to post on Steemit. He gave me permission to post this. Show him some Steem love so I can convince him to post here.

As the most recent crypto crash began I had my Bittrex account open, charts constantly being updated and my eyes peeled to the movement of crypto trades early this morning (11PM-3AM PST). For a crypto “day trader,” this may seem out of the norm to be trading into the wee-hours of the night, but I am about to tell you why that it’s not that out of my “norm,” and more so, what this crash implies for the “mainstream” crypto market. I have written this article in a Q&A format, to address a lot of the questions that are circulating the market.

First, I need to address the obvious: why do you focus on trading between 11PM-3AM PST?

I have been making the bulk of my returns with my “friends in the East,” trading between 11 PM PST to 3 AM PST. Watching market trends during the day prior (when most Eastern investors are sleeping), I have been able to follow the days trend into the night, and have been accurately predicting the movement of multiple tokens and coins during these time frames. I witnessed a change last night, and I have a new prediction of what is to come for the market in the “unpredictable” near future.

What actually happened last night?

Using the Bittrex Exchange (while also keeping an eye on Coinbase and Coinmarketcap), I watched flash crashes happen across the board and recognized something very unique. Coins and Tokens created outside Asian territories are taking far less of a hit than those incorporated in Asia or heavily backed by Asian investors (something I have been able to recognized due to volumes traded during the 11PM-3AM timeframe). I immediately realized that this crash was happening due to political influence – somewhere in the East - so I began searching for answers. Within minutes, I found it; main land China just outlawed ICO’s (Tokens) due to their potential of “disrupting financial markets.” I knew I needed to act, and act fast. I liquidated over 85% of my total holdings (most of which had high trading volumes during “Eastern hours”) into Bitcoin (some even at a loss) and waited for my time. Everything went down at an accelerated rate (but still much slower than Bitcoin’s decline). I was able to reinvest into a few tokens that I knew had the most volume during “U.S. hours” and were not located in Asia. This allowed me to dump my Bitcoin on Bittrex for these “opportunistic” tokens before Bitcoin followed the obvious downward trend.

Why did the outlawing of ICO’s and Tokens hit Bitcoin and Ethereum as well?

Well on Bittrex and similar exchanges, tokens are bought and sold for BTC and/or ETH. It meant that Chinese investors were all dumping their Tokens for BTC and ETH at whatever price they could get out at. Since this new ruling does not limit Chinese investors from trading BTC, ETH, or any other decentralized cryptocurrency, this was their only immediate choice to try and avoid legal action from the Central People’s Government (the Chinese Government); or at least that was the ideology behind it.

Most importantly, what’s going to happen to the Crypto market now?

No one can say for sure what’s about to happen, but I can tell you what I am going to do, as well as my future predictions. The crash last night only negatively affected my portfolio by less than 1% overall because I was able to recognized the effects that were coming. Today, I am actually up 4% compared to yesterday and I will be selling a lot of my Tokens when I hit the 10% mark (which I expect will happen in the next few hours, and if it doesn’t I will settle for 4%+). Keep in mind; selling my Tokens means I am actually trading my Tokens for Bitcoin and Ethereum.

In Conclusion.

Chinese investors can still trade Cryptocurrencies, and I’m predicting we will see insanely high volume in the reputable coins in coming days, especially in the 11AM-3AM PST time slot. I predict that we will see Bitcoin break the $4,900 on or before the weekend. I also see gains for Ethereum pending, putting it back around the $370 range before the end of Sunday. If you currently hold positions in Bitcoin or Ethereum – take a deep breathe; I think we will be back to pre-crash numbers before you know it.