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Happy New Year BROs
A new year, new opportunities, new Market Musings. After a well-deserved holiday in the last weeks of the year, and the first week of the new year, I am back to share my musings about the Crypto markets with the BROs every week.
The biggest change is that after a year of Market Musings, I will no longer write them on Fridays, but every Monday from now on. After all, "Monday Market Musings" sounds better than Friday, right?
So let's start with the standard, "Happy New Year to all the BROs". Yes, I'm late, but hey, this is the first blog I, (@hetty-rowan), am writing for @brofund this year, so it's still allowed. Now that this has been said, we will delve into the market, although I must say that it is not easy to start up again after a good holiday. I don't know if I'm the only one who experiences it this way. Do you also have the situation that you completely let go of everything during your holiday and that you even seem to have lost almost the complete 'crypto touch'? When I take a look at the market now, I almost feel like a newbie, while in reality I have only really let go of everything for 2 weeks. 2 weeks of not dabbling in crypto, and my god, it seems like an eternity. The feeling that so much has changed... and let me say that this feeling for the altcoins is not so positive.
Volatility
The remarkable volatility that Bitcoin is currently experiencing is not much of a celebration for the altcoins. I don't have Cardano myself, but I don't think it would be fun to see it drop by more than 7% in 24 hours after this coin had done so well. The upcoming Bitcoin ETF is causing quite a stir on the market, and Bitcoin dominance has skyrocketed. I can only really hope for the entire market that this ETF is approved, although it is still far from a certainty that the entire market will benefit from it. It is a certainty that Bitcoin will go up, but how does this relate to altcoins? There is once again a large uncertain factor present and whether this will benefit the crypto market in any way is not yet certain.
Yes, in the event of approval, and therefore admission of the Bitcoin ETF, large capital can and will certainly be injected. But do we as individuals benefit from this? We will have to reevaluate that after a year because I still foresee the necessary struggles for the altcoins. If the Bitcoin ETF comes through, it could certainly mean that Bitcoin dominance remains high, and that is never good news for altcoins. But let's start the new year on a positive note.
And this new year starts with some advice from me. LOL. Yes, sometimes I dare to give advice. Especially if this advice means nothing more or less than to follow the financial advice of Viktor Buterin, which he gave to his followers on X. I happened to see it passing by, and I can't help but agree with him to a very large extent. If you want to read Viktor's advice yourself, you have to look him up on X. But in short, it can be summarized in four key points:
- Diversification is good
- Saving, try to get to the point where you have several years of financial expenses covered. Financial security is freedom!
- Be boring with most of your portfolio. According to Viktor, this quickly means that for crypto you invest the majority of your crypto portfolio in Bitcoin or Ethereum.
- If you do leveraged trading, never use a higher leverage than 2x. It's better not to do this at all.
And when I saw this advice I had to laugh. I certainly don't have the same capital as Viktor, (I wish). But this was the conclusion I came to for myself after six years of crypto struggles. Well, that means for some parts. The leveraged trading is something I don't even dare to look at. But saving and starting to be boring with most of my portfolio sure appealed to me. And while boring never sounds like the most fun, the growth you can achieve by being boring will most likely more than makeup for it.
Another Advice
To end these musings in style, with one more piece of advice, today I will refer you to an piece of advice that has just come out. An advice from the SEC!
Say NO to FOMO
The timing of this advice from the SEC is striking. The last time they issued the same advice was in 2021 just before the start of the bull market.
This time, the advice comes amid buzz everywhere about the possible approval of the first Bitcoin ETF. I can't say for sure, but you would expect that...
The decision is expected to be made before January 10, 2024. Just a little longer... Just a little while!
Anyway, the week starts again with a lot of volatility in the markets, and whatever will be decided, I wish you all a very nice week!
