Hey everyone,
I wanted to come on to send everyone a quick update on the craziness that happened yesterday.
Trump announced 100% tariffs against China for restricting rare earth minerals used in a variety of applications. You can read Trump’s Truth Social post here:
https://truthsocial.com/@realDonaldTrump/posts/115351840469973590
According to a ZeroHedge article talking about the meltdown, it had this to say about the magnitude of the drop in prices:
“The $19.31 billion in liquidations is more than ten times the losses seen during the COVID-19 crash ($1.2 billion) and the FTX [cryptocurrency exchange] collapse ($1.6 billion).”
Personally, I think that the institutions are manipulating the crypto market and seized this opportunity for them to pick up more crypto at cheaper prices. I’m confident of this assessment because crypto didn’t stay down long.
I believe the crypto melt-up is still in play, despite this event taking place. All of the other information I’ve shared is still intact: we have evidence of market euphoria (as seen in retail traders plowing into stocks and options), crypto legislation being worked on/passed, Fed lowering rates, and many crypto ETFs are likely to be passed soon for Wall Street money to join into crypto. These are factors make a blow-off top likely (though there are no guarantees). …And as I pray for forward guidance, I think we should still hold.
For those new to crypto and you see this happen, don’t allow the panic to cause you to sell! This is why conviction and understanding is so important. When we have conviction about an investment, we’ll hold or possibly buy even more.
Earlier this year, I was warned in prayer that manipulation would happen and I don’t think they are done yet. Be ready for more drops or even larger ones, especially for the major flash crash that I believe is still ahead of us. In my opinion, flash crashes are buying opportunities. If I wasn’t maxed out on my positions, I would have bought more yesterday and none of my lower buy orders were triggered.
OTHER IMPORTANT CONSIDERATIONS: Many exchanges prevented people from being able to buy including Coinbase, Uphold, Kraken, and Binance. (Coincidence? I think not.) I have heard that some people did report lower buy orders being filled, though not sure which exchange.
If we have a melt-up, we could see the same thing where they will not allow people to place sell orders. This is why it’s important to take custody of your assets and have sell orders already in place! A lot of my crypto is off the exchange but I do have my SHIB and LUNA holdings with sell orders already setup since those cryptos could have flash spikes (move up really fast). Keep in mind that having more than 1 exchange account is helpful in case you need access to one and your primary happens to be unavailable. To me, Coinbase has been the most unreliable. I don’t use them unless I purchase and transfer out of the exchange right away.
That’s all for now. Volatility is hard to stomach but gets easier the more you deal with it.
Blessings,
Ron
