Overview
The primary objective of this crypto section is to provide concise knowledge about cryptocurrencies, offering valuable insights that can be of assistance in your journey into the crypto world. Rather than a conventional linear approach, we aim to provide bite-sized, practical information.
My personal preference within the crypto ecosystem leans towards Ethereum and Polkadot, owing to their resilient architecture and flourishing ecosystems. Consequently, this section will place greater emphasis on these two cryptocurrencies.
Disclaimer
The articles posted on this blog are written for my personal interest and educational purposes. I am not a financial advisor, and the content provided here does not constitute financial advice or recommendations. All financial decisions should be made based on your individual financial situation, goals, and risk tolerance. I encourage you to conduct your research and consult with a qualified financial professional before making any investment decisions. Please be aware that all investments carry inherent risks, and past performance is not indicative of future results. By using the information on this blog, you acknowledge and accept that you are responsible for your investment choices.
2023 Market status
In September 2023, the crypto market experienced a cooling-off period, marked by a historical trend of underperformance for Bitcoin. Major cryptocurrencies faced downward pressure due to hints of another interest rate hike by the Federal Reserve and continued uncertainty surrounding Bitcoin spot exchange-traded funds (ETFs).
Bitcoin and Ethereum traded sideways but closed the month with modest gains, up 5.1% and 3.0%, respectively. Solana (SOL) was the best-performing cryptocurrency in the top 10 by market capitalization, gaining 18.9%, while Dogecoin (DOGE) had a 1.5% loss. Despite September's performance, Bitcoin and Ethereum maintained positive year-to-date returns, with gains of 63.3% and 40.2%, respectively.
Bright future in 2024?
Bitcoin ETF developments remained a focus, with the SEC delaying decisions on Bitcoin spot ETFs until January 2024. This comes after repeated delays and previous approvals of cryptocurrency futures ETFs.
Binance, the largest crypto exchange, faced uncertainty due to regulatory scrutiny and rising interest rates. The SEC charged Binance with illegal operations in the U.S., leading to a significant drop in Binance.US's revenue.
Other notable events include the SEC's attempts to appeal a court ruling on the classification of Ripple's XRP, House Republicans introducing a bill against a central bank digital currency (CBDC), and JPMorgan's UK digital bank banning crypto transactions.
In October, crypto investors are monitoring Bitcoin ETF updates, regulatory developments, and the situation surrounding Binance. The trial of FTX founder Sam Bankman-Fried, Fed Chair Jerome Powell's comments, and the U.S. Labor Department's September jobs report will also influence the crypto market.
My thoughts in 2023
Investors currently have access to more secure investment alternatives, such as the 10-year U.S. government bond, which has recently crossed the 5% threshold. Additionally, the stock market appears enticing as it has experienced overselling in the past 30 days. It is my belief that the cryptocurrency market will maintain its decoupled status from traditional stock, bond, and commodity markets in the coming months. This will likely continue until the broader stock market completes its downward trend or until positive developments from the SEC regarding Bitcoin ETFs are announced.
If you’re reading this and still around you probably believe that the future is peer to peer and will rely a lot less on banks and traditional governments when it comes to systems that facilitate exchange of value. It’s the ticking clock that’s your enemy now, your ability to finish the race without bleeding out. The marathon. 🤞