It is another crazy day here in the world of crypto because we have dropped again. Bitcoin is now down at $25,000. We’ve had quite a big crash, but not so big in comparison to what we’ve seen in the past. We’re down at those lows that we saw a few weeks ago with that short-term crash. We’re not decided yet where exactly it’s going to go, but we’re going to go over exactly why this is happening, what I’m doing in this market right now and a little bit about Luna, because why is the price going up in this market?
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So first of all, crypto bubbles, look at that across the board red. Everything is down. Altcoins are being absolutely battered in this market. It’s pretty intense to see when you are a holder of some altcoins. Not great, not great. Luna and Luna Classic are up five percent around together. Wild stuff.
We’re going to go over why that’s happening, but bitcoin right now is sitting at $25,600. Of course, like I’ve said, I’m buying a dip when we see blood in the streets. This is dollar cost averaging. This is something that people need to understand. This is dollar cost averaging, which I’ll continue to do if bitcoin goes down to 11k, which if we see what happened in 2018 play out again, which is around an 82 percent drop. If we chuck this on here, 82%, I think it’s maybe even 83% around there. $11,600 If we had exactly the same thing play out that happened in 2018, we could actually see $11,000 for bitcoin.
If that happens, I will continue to DCA. This is dollar cost averaging. And yes, when the market dips, I’m dollar cost averaging. It’s as simple as that. A lot of people don’t seem to understand that’s the mindset for me with bitcoin. It’s a long-term investment in a certain all or nothing game. I think it has so much upside that right now if it goes down another 50% from where we are, I can handle that, but that’s the decision that you have to make for yourselves. And of course, this is a small amount of money. This is not all of the money I make. This is a very small percentage slowly going back into the market. Of course, I took a bunch of profits here. A bunch of profits up here. I have lost a significant amount of my portfolio over 50% bitcoin and ethereum altcoins. I have lost over 50%, some significantly more, and, of course, absolute losses when it comes to UST and my stable coins, but again, dollar cost averaging and just following my game plan no matter what’s happening in the short term is what I’ve been saying for years now, and I’m going to continue doing that. Maybe it will be my downfall. Maybe I will only lose money. Maybe bitcoin and crypto will go to zero, but that’s the worst.
And we had quite a big piece of news come out just two hours ago. The Celsius network is pausing all withdrawals, swaps, and transfers between accounts, acting in the interest of our community as our priority.
This means that if you use Celsius, which I don’t, but if you do use Celsius, you can’t move your money. You can’t take your money off the platform, and this is scary, right? The market is scared because of this selling off, and getting out of the market is what a lot of people are doing, and of course, this sort of news creates a bank run similar to what we saw with Luna. Everyone trying to get their money out at the same time causes these sorts of dips. That’s what I think is happening right now, and in the short term, the pain may only get worse.
We are sitting pretty much right where we dipped down, which I was saying is very likely to happen. It’s happening now in the short term. I’m hoping we do get a little bounce here. I still think a relief rally is definitely on the cards up to around these levels. If we do break higher, it could be good news, but most likely, these levels here between $30,000 and $32,000 are going to play a very heavy level of resistance, and that is an opportunity for myself to make a decision. Do I want to get out of my riskier old coins at that point? Of course, I was doing that over these areas here. I got out of a lot of my positions, not entirely, but just shaving down on those positions now that we are here. I’m waiting for a little relief rally to make another decision there, if not right now.
I am holding on to that to break down what’s happening at Celsius. A little bit more than 302 million in crypto center FTX and users’ withdrawals have been poor, so Celsius has been moving more than a quarter of a billion dollars’ worth of funds from Aave into the FTX exchange. The reasons aren’t specified, but basically people think it’s to protect the liquidity, right, because if they got liquidated on Aave, which is a lending platform, this would be very bad.
So they haven’t had an official word out yet, but the project has been moving those coins, and also, there is another issue with the staked If Celsius fails, it would sell a significant stack of its stETH, which would cause it to depeg further. This stake, which is actually depegged from ether at around 5%, was a cause for another panic in the market. That is still happening now. A stETH is a token provided by the Lido DeFi lending platform that has been given as proof that a user has staked their ETH. It is currently trading at 4.4% less than it was yesterday. So, on top of the withdrawals that have been paused, there is still fear that state efforts will continue to depeg and that Celsius may potentially sell it, which would cause a further depeg. This is worrying stuff here, and what we need is for Celsius to come out and say exactly why they have been moving this money and explain why they’re doing it so people stop panicking. That’s what we need. We need clarity in this market. It’s very frustrating to see projects doing this sort of thing. But this is one of the safest ways to keep your cryptos like bitcoin, ethereum, and long term holds right here with you.
Then something like Celsius doesn’t have the ability to just take it off you to pause the withdrawals. We heard news that Coinbase could potentially liquidate their coins. Even if the company went into bankruptcy, which is super scary, this whole market is very scary and we need to keep ourselves protected. If that’s keeping money in cash for you guys, keep it in cash. If that’s keeping your money on something like a ledger away from these centralized exchanges, do that. There are also non-custodial wallets that you can use and all of that sort of stuff, so please use this time to research how you can keep yourself safe in this market.
Finally let’s talk about Terra. Right now, it’s up 6%, this is the new Terra and the Terra Classic is up 4.65%. Why is this mainly happening? From what I can find, there are a lot of burns happening behind Luna. Almost a billion tokens have been burnt recently, meaning that the circulating supply is going down now.
I think this is a very risky play if you are trying to benefit from this. I wouldn’t say dump your money into this. I see a lot of youtubers out there talking about how Terra is very likely to go back to ascent and even higher, which I find very difficult to believe with all of the fear, uncertainty, and doubt around this project. The fact that the CEO just doesn’t even care about Classic. Of course, there is a potential for terror classic to become like a community-based meme coin. You know that sort of thing. Of course, we’ve seen coins like Doge and SHIP absolutely pump out of nowhere, but in the market conditions that we’re in right now, this is one of the most risky plays that I could ever see. For me, shorting the market on 1x is a way to make money in the short term and then dollar cost average into my long term holds. Stay chilled, trying to not get emotional, zooming out, chilling out, staying up to date, learning. All of that sort of stuff is what I’m going to be doing in this market.
[This article is a transcription of a video made by Conor Kenny]
Original video: https://youtu.be/h8JVhERcwY8 ]