Overview
- Crypto winter survival guide.
- Large volumes of BTC trading.
- Waiting for bonds to break.
- Rate hike expectations on the rise.
- Celsius hires restructuring attorneys.
Quick guide to surviving crypto winter.
Dear Banter Fam,
Winter is here.
You might have heard it said before, but the main goal of the bear market is to survive. The easy money making of a Fed induced bull-run is long gone, along with risk-on sentiment of market traders. It’s time to find a coat and prepare for the road ahead. Below are some steps to get you started in the correct path.
Take Inventory
- Where do you stand? If you’re still here, you likely believe in the future of crypto. Keep building on the conviction that got you to this point.
- What bags are you holding? If you lack conviction in a position, close it out. It’s not worth the extra stress.
- Accept the losses. There’s a ton of regret circling around. The best thing is to accept and move on.
- Where are you mentally?
Tidying up the ship
- Clean up the portfolio. Get rid of any assets you don’t believe in long-term, they’ll likely only cause you stress.
- Step away for a while. Take a break from the hectic pit that’s CT. The brain becomes addicted to the dopamine-inducing “alpha” posts. Stop looking at prices everyday.
- Stay engaged. Figure out your favorite reliable sources of information and stay in tune, so you’re not playing catch up next cycle.
- Make some friends in the cryptosphere. Find the groups that provide reliable information. Leave the spaces that were complete hype.
Create a Game Plan
- Create a Future thesis. Where will the space be in a year? 5 years? 10 years? Create a thesis with all the knowledge acquired from this cycle.
- Break old habits – This one is the hardest. Make some rules for the future and stick to them. One of my personal favorites is learning to take profits and moving the funds to ETH or BTC.
- Create a warchest. Save some money. Get a side-gig. When the next cycle begins, you’ll be financially prepared.
- Invest time into yourself. There’s more to crypto than buying assets, the exponential future of web3 will create a large array of jobs (developers, community managers, writers etc..). Learn to code or how to write. Search DAOs for volunteer opportunities.
- Dollar-cost-average into assets for the long-term.
Market update 🌍
The broader crypto market is a mixed bag of action with quality protocols like Chainlink (LINK), Helium (HNT) and Kusama (KSM) seeing a slight rebound of +10% gains. We’ve entered a phase of low price accumulation by a few entities, and large distribution by a majority. The future will highly depend on macroeconomic factors, with inflation in the limelight.
Bitcoin (BTC) steadied today, after Monday’s selloff. The enormous boost in volume in the past two days represents the amount of BTC that’s trading hands. BTC finished off the US session down -1.36%, to US$22,222.
High-Resolution Chart
Ethereum (ETH) price steadied after one of its worst days on record, as buyers came to scoop up the US$1200 price tag. ETH is down -75% since the November 2021 high of US$4867, and completed the US session up +0.49%, to US$1213.
High-Resolution Chart
The big talk in traditional markets revolves around the increase in bond yields across the board. Since the Fed rolled back its purchasing efforts, few are seeking treasuries as a safe haven. Many predict the “break” in this trend will be the turning point for assets, but there’s little optimism of when it could occur. The 10-yield broke out of a channel that’s held resilient since 1987, and risen 22% in June so far. Find the monthly chart below.
High-Resolution Chart
| US markets close | Gain |
| S&P 500 | -0.38% |
| Nasdaq | -0.67% |
| Dow | -0.20% |
| VIX | +4.00% |
| Protocol (Coin) | Price ($) | Gain (%) |
| Helium (HNT) | 9.28 | +19 |
| Chainlink (LINK) | 6.43 | +17 |
| Kusama (KSM) | 50.33 | +10 |
| Elrond (EGLD) | 44.60 | +8 |
| STEPN (GMT) | 0.61 | +7 |
| Celsius Network (CEL) | 0.64 | +153 |
| UMA (UMA) | 2.79 | +42 |
| SKALE (SKL) | 0.05 | +24 |
| Evmos (EVMOS) | 1.45 | +16 |
| Rari Governance (RGT) | 8.60 | +83 |
| Origin Protocol (OGN) | 0.21 | +17 |
| Bitcoin Fear and Greed Index | 7 Extreme Fear |
| “Crypto” Google Trends 90d | 21 |
| “Bitcoin” Google Trends 90d | 31 |
Newswatch 📰
The Fed at it again. Inflation is at its highest ever in the US. And in the midst of it, there are now many rumors going around that the Fed will approve the biggest interest rate hike in over 27 years. The Fed, and its Chairman Jerome Powell, were expected to impose a 50bps rate hike this week, and one more 50bps rate hike next month. But the situation is heating up, and now everyone is waiting to see what exactly the Fed will do, as many are starting to price in 75bps rate hikes in place of each 50bps hike. The rate decision will be announced on Wednesday 15th of June at 1800 GMT.
Celsius searches for solutions. Crypto lender Celsius has hired restructuring attorneys from the law firm Akin Gump, after having told users it was pausing withdrawals on Monday. The controversy surrounding Celsius began when they began placing users in a so-called “hodl mode” to prevent fraudulent activity. This happened around the time of the Terra collapse. The bottom line is, Celsius very likely lacks the funds to support the mass exodus that arose due to market conditions.
Uganda discovers a gigantic gold deposit. The central Africa nation announced the discovery of 320,000 tonnes of gold according to President Museveni, who addressed the nation on June 7. President Museveni claims it could fetch the country more than $12 trillion. Some estimates put the world’s total gold supply at 171,000 tonnes, but estimates range as high as 16x that amount. Whatever the case, the discovery will have a large impact on the price of gold in global markets.
At the protocol level ⛓
Protocol level tidbits:
- Starknet Roundup #20
- Introducing Gravity: An influence (ve) focused product division of BadgerDAO
NFT & metaverse update 🐵
Opensea migrating to gas-friendly design. Opensea announces the merge into a web3 marketplace protocol named Seaport. Seaport will lower gas fees by 35% according to the blog and will enable features such as collection offers, rarity scores and bulk listings.
Banter’s take
The last whispers of “bull-run” appear to have ceased in the cryptosphere. It’s time to take stock and prepare for the road ahead. Unfortunately, crypto winter can be a formidable challenge. Regulators will kick the industry while it’s down, protocols will fail, and the CT influencers will quiet down. The circus has left town, and those remaining… are the toughest and most dedicated.
Keep in mind: The builders of web3 and crypto are constructing the open, decentralized and permissionless world of the future. It’s going to take a long time, and we’ve barely left the gate.
So, while there’s a choppy winter ahead, be prepared for green pastures once it’s over!
Gabri
Follow me on Twitter for daily updates.
Disclaimer
Good Morning Crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.
All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice, and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.
