Good morning, afternoon, and evening everyone wherever you are in this world. Welcome to NFT daily where I go over the latest information in the NFT marketplace as well as cryptos. As a disclaimer, everything on this channel is just my perspective and should not be taken as financial advice. For financial advice please consult a financial advisor.
First thing first, we will cover cryptocurrency prices under Coin Market Cap. Bitcoin is still pretty steady around the mid $30k region. And I can tell you guys from my experience that the best way to lose money is simply to day trade your assets. If you think this market is something where you can get rich quickly, then that is likely not going to happen aside from beginners' luck. The chances of winning here are too small. And a lot of people lose out at the end. And participating in leverage trading as I have said many times is a recipe for disaster.
So my own reason why this market pulled back is... I don't know. Maybe it was planned but with so much FUD or Fear in this market, I am not surprised if all this was planned and well-coordinated. For many big institutions getting into this market, maybe they said to themselves well since the dollar is getting inflated I'd like to get into Bitcoin, but Elon Musk made it more expensive so let's push the price back down and hope for a 50% correction. So to me, that is a fair thought because it is literally at the same price as when Elon Musk purchased his Bitcoin at $33k. And if this was a coincidence, then the timing was absolutely perfect.
With all that said, I still believe this cryptocurrency industry is the new asset class, as Goldman Sachs reported a few days ago. Already at a Market Cap of around $1.5 trillion, in the next four years. This space is likely to double to $4 trillion, and in 8 years that would be $8 trillion dollars. And as long as governments can figure out a way to tax it, I do not see a ban ever, ever happening. There are already crypto-fiat pairs denominated in the US dollar such as Tether and the USD token that support swapping out cryptos into local currencies. And I also bet in the next several years that there will be other tokens like the British Pound and the Japanese Yen. I kid you not everyone. This is pretty much the new Forex market in terms of volatility. So if you understand the growth of how this current market can expand, for any of you guys who have kids in middle school or elementary school then this might be a great time to use this market as an investment vehicle by investing in blue-chip cryptocurrency projects and sitting on it for the next several years as this market cap expands. And if you want to go that route, I do not recommend doing it alone. Seek a professional advisor in this space that has an understanding of cryptocurrencies first. They may tell you just buy Bitcoin, Ethereum, and/or Cardano for your child and just sit on it and forget it.
Okay so now let us switch over to the Black Rock/Ark Invest news. If you guys already know there was just so much whale manipulation prior to this weekend. Everyone was saying Bitcoin would fall below $20k and even $8k which to me was silly. I have heard this so many times, and it gets so old. But I bet some of you who have been in this market for a while, all those estimates just sounded stupid. I will tell you this if Bitcoin ever fell below $20k it would be a gift from God himself. And that gift won't last too long unless something fundamentally wrong happened to the Bitcoin network like a 51% network attack. Also, I believe China banning Bitcoin mining is good for the overall market because most of the mining takes place over there. If China was to ban it, which I hope they would, the network would be more decentralized with mining projects taking place in other parts of the world. So most people who heard all this FUD news from last week mostly likely sold Thursday and Friday. While everyone else waited to see if Bitcoin would fall this weekend so they could buy the dip on alt-coins. And that is exactly what I did but I did not see any low prices this time or great entries like last week.
With all this bearish news from the media, new Bitcoin ETF requests have not stopped piling in which is good news for the overall market. This is definitely a good barometer that is telling us that financial intuitions and investors are still interested in entering this market. And with Bitcoin already experiencing more than a 50% correction these powerhouse institutions who are making these financial instruments can take advantage by scooping up cheap Bitcoin before prices go even higher. So they really have no excuse in buying at these levels right now.
And following up with this positive news just a few days ago, the Nigerian central bank did a U-turn on the Bitcoin ban, saying they now allow it. But honestly, I can tell you that most Nigerians or anyone in other parts of the world do not care about their country banning anything as far as stopping the spread of adoption. I have heard China, Russia, and even the Middle East banning Bitcoin but nothing happened because these days everyone has access to a VPN, and they are most likely going to decentralized exchanges to buy cryptocurrencies. I honestly think the Nigerian government is just trying to save themselves the embarrassment as it cannot stop this activity. With that said, in the future, we could foresee most governments embracing cryptos as another revenue source.
Okay, everyone. That is all I have for today. Please let me know your thoughts. Is the bottom in? Did we reach absolute fear in this market? And can we now talk about something else? Have a great day.
SOURCES:
- Today’s Cryptocurrency Prices by Market Cap. (2021, June). coin market cap. https://coinmarketcap.com/
- Randall, D. (2021, June). Ark’s Wood says bitcoin ESG push makes solar more appealing. https://www.reuters.com/business/sustainable-business/arks-wood-says-bitcoin-esg-push-makes-solar-more-appealing-2021-05-27/
- Franck, T. (2021, March). Fidelity to launch bitcoin ETF as investment giant builds its digital asset business. CBC. https://www.cnbc.com/2021/03/24/fidelity-to-launch-bitcoin-etf-as-investment-giant-builds-its-digital-asset-business-.html
- Wan, S. (2021, May). Nigerian central bank does a U-turn on Bitcoin ban, saying they now “allow” it. crypto. slate. https://cryptoslate.com/nigerian-central-bank-does-a-u-turn-on-bitcoin-ban-saying-they-now-allow-it/