Here’s What’s Driving Bitcoin’s Wild Ride – Curzio Research | Jewelry Dukan

What’s Driving Recent Crypto Volatility?

Bitcoin is on another roller coaster ride. After the overall crypto space declined sharply for most of the last week, the overall crypto space exploded higher on Friday…with bitcoin hitting a three-week high on Monday…then sharply falling on Tuesday.

Crypto is always volatile. But the latest action is even crazier than usual…

Last week, bitcoin slipped below $19,000 for the first time since June. But investors jumped in and bought the dip…starting a huge rally as we headed into the weekend.

There’s a good reason for this ebb and flow…

As most of you know, the Federal Reserve is in the midst of a major battle against rampant inflation. The only way to bring down inflation is by raising interest rates, which the Fed has been doing since March 2022.

Investors are afraid of rising interest rates. If the Fed pushes them too high, it could crash the economy. This is why you see all financial assets – stocks, bonds, crypto, etc. – acting crazy lately.

August CPI (Consumer Price Index) numbers beat expectations this morning. Data showed that inflation eased slightly over the past month, falling to 8.3% from 8.5% in July. Core inflation – which excludes food and energy prices – rose to 6.3% in August from 5.9% in the previous month.

The fresh inflation figures halted crypto in its tracks, sending Bitcoin back below $21,000.

And we have two other big events to watch out for over the next week:

  • September 10th to September 20th – Ethereum’s PoS upgrade will happen
  • Wednesday 21 Sept – The Fed will announce the next rate hike

Crypto investors are also nervous about Ethereum’s transition to a proof-of-stake protocol, which we’ve detailed here.

And next week’s Fed meeting is likely to increase volatility.

It’s easy to get distracted by daily price action… but history can give us an idea of ​​what to expect over the next few months…

Should You Invest in Bitcoin Now?

To get a better idea of ​​whether Bitcoin will rise or fall, we need to look at its history.

September was historically the worst month for Bitcoin. He has ended the month in the red in seven of the last nine years.

Remember that the past does not predict the future. But history tells us that it’s best not to get too bullish in September. Especially given the uncertainty I mentioned above.

However, if we take a closer look at Bitcoin’s historical returns, October is one of the best months. Listen…

Source: | click to enlarge

Using the chart above, you can see Bitcoin’s performance for each month over the past nine years. For example, in May 2017, the price of Bitcoin rose by an incredible 52.71%.

February is the only month with better performance than October. And historically, the end of the year has been profitable for bitcoin investors as well.

Here is my game plan…

This morning’s CPI numbers showed that inflation is still a major concern…which means we need to be careful not to get too bullish on crypto, stocks or riskier assets.

Right now everyone is expecting the Fed to hike rates by another 0.75% next week… but investors are hoping the next few rate hikes will be smaller.

As a long-term investor, I plan to add to my Ethereum and Bitcoin positions… But I’ll have to see how Ethereum’s transition plays out… as its blockchain gets a huge boost in scalability and performance.

And I won’t buy anything until then after Fed meeting on September 21st (at the earliest). I need to see signs that Fed policy is working… and whether Fed Chair Jerome Powell is showing any sign of an easing of the inflation struggle.

Aside from the two biggest names in crypto, I’m watching Layer 2 cryptocurrencies (projects that work on the Ethereum blockchain) like Polygon (MATIC) and Loopring (LRC). I expect these types of projects to be the biggest winners from Ethereum’s move to a PoS model… and worth putting on your radar…

The final result

We’re in a tough market…mainly due to investor fears of more rate hikes by the Fed.

But we will eventually have the opportunity to capitalize on it…

If inflation slows, it gives the Fed confidence that its plans are working… which means it can scale back its rate hikes.

Simply put, we want the Fed to take a break soon. The less interest rates are increased, the better the outlook for the economy will be…and we will see cryptocurrency prices rise.

On the other hand, if inflation remains high, the Fed must become even more aggressive. Given this uncertainty, it is best to wait and see how the situation develops.

If you’re a long-term Bitcoin investor, high inflation (and an aggressive Fed) will be an opportunity to buy more Bitcoin below $20,000… and lower your cost base.

GameStop announces an important new partnership with FTX

GameStop, the popular meme and video game store, is one of the great underdog stories in stock market history.

And his story is looking a little brighter following the recent earnings announcement…

The breakdown

Last week, GameStop reported weaker-than-expected earnings. It’s a typical report from the company — its quarterly results have been ugly since it began closing stores and refocusing its business on resuming growth.

The good news is that the company has expanded its leadership position over the past year by hiring Ryan Cohen, founder of successful pet supply retailer Chewy, and Matt Furlong, who has helped grow Amazon’s business in Australia.

As part of its earnings announcement, GameStop announced that it is working with FTX (a major crypto exchange) to grow its NFT marketplace.

Why this new partnership is important

GameStop’s NFT Marketplace is still in “beta mode,” meaning only approved users can access it. The company continues to work on improving the user interface and fixing bugs.

Over the long term, the NFT marketplace is a key component of GameStop’s growth plans. By partnering with FTX, it will gain access to a much larger client base – FTX has over 1.2 million users and $21 billion in trading volume in 2021.

GameStop did not disclose any further details of the partnership. But it will work with FTX on marketing strategies and focus on generating revenue from the two companies’ large customer bases.

A huge avenue for profits…

GameStop now has an opportunity to establish itself as one of the premier marketplaces for NFTs, as it has for the video game space.

The new deal with FTX gives the company a solid partner for its marketing campaigns… along with access to more customers.

I don’t own GameStop, but I vote for it. This new avenue gives him another potentially huge revenue stream. The NFT platform will take time to build, but software and hardware sales could surge during the holiday months. Given the involvement of the Reddit crowd, there’s no telling where this stock could go.

Ford races into the metaverse

Ford NFT's
Source: The Crypto Times

Big news in the auto industry last week… Ford announced plans to enter the NFT/Metaverse market.

The company has filed 19 trademark applications covering all of its major brands and car/truck models, including the Ford Lightning (the new, electric version of its classic F-150) and its Mustang series.

These brands are a starting point for Ford to enter the NFT market… by creating digital assets that give users access to virtual vehicles within the metaverse.

What is it about Ford’s brands?

Ford plans to create downloadable graphics, text, audio and video files featuring its most popular vehicles. This content can then be turned into NFTs that can be used in the Metaverse.

As with most Metaverse-related news, the details are a bit hazy. However, the company said it plans to create virtual goods and other Metaverse-related content. For example, Ford will eventually host virtual car dealership shows within the metaverse.

It hasn’t locked into a specific metaverse (like Sandbox or Decentraland)… but it’s clear that the company is serious about building its presence in these virtual worlds.

take that away

Ford’s announcement is the latest evidence of the Metaverse’s long-term growth profile. Big companies are spending millions of dollars to get a foothold in this space.

When Ford completes development of its NFT and Metaverse technology, it will enter a market that also attracts many other automakers, including Toyota, Nissan, and Hyundai.

As I mentioned last week, major investors are pouring millions of dollars into NFT and Metaverse related projects. Ford is just the latest entrant in this space.

Soon…users will be able to choose and customize their vehicle…and own an original Ford NFT.

Do you have a question about digital assets? Let me know here.

Joe Davide

hp Huge companies like JP Morgan, Samsung, and PwC are quietly exploiting this little-known virtual asset… and Frank wants to give you some of it for free.

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