With the spread of the epidemic, the intensifying conflict between Russia and Ukraine, the rise of global inflationary pressures, and the risk of spillovers from the tightening of monetary policies in major economies, the cryptocurrency market has a bumpy start to 2022. Affected by Luna's black swan event recently, the market has ushered in the darkest moment. The trading volume of the entire market has shrunk significantly, and the panic index has dropped to a low of 9 this year, which is extremely panic, and traders are generally in a wait-and-see attitude.
At present, the market value of mainstream cryptocurrencies is highly correlated with the US S&P500. The current round of macro hedging policy in the United States mainly involves monetization of financial deficit and transferring payment to support consumption. The Fed fills the deficit gap by buying US Treasuries on a large scale. Through financial incentives, transferring fiscal funds to residents, reaching the goal of supporting consumption and economic recovery. This combination of punches has also brought a series of costs such as high inflation, polarization between the rich and the poor, and credit crisis of the U.S. dollar. U.S. mortgage rates jumped to 5.27%, the highest since 2009, and U.S. 10-year Treasury yields soared directly above 3%. The recent extreme policy of raising interest rates and shrinking balance sheets at the same time has triggered violent fluctuations in U.S. stocks.
On the whole, with geopolitical and macroeconomic uncertainties, the repeated spread of the global pandemic and other factors, the economic growth of major economies has generally been lower than expected. However, as the 2020-2021 bull market has attracted a large number of traditional investors' attention and entry, it is expected that the retreat of the crypto market will be smaller compared to the previous cycle.
Compared with the previous bull-bear cycles, the bottom layer of the blockchain, market hotspots, participants and many other elements have undergone tremendous changes. However, there are also many basic laws holding:
For projects, there is no eternal myth in the business society. Only companies that hold the awe of markets can survive . Maybe you have the hard work of the team and the enthusiasm for entrepreneurship, but it is difficult to knock on the door of investors. The bear market is the best litmus test, and many of the projects that dominated the market in this bull market were born at the bottom of the last bear market.to ensure you can appear in the public eye in the next bull market, all you need to do now is to return to technology-focused products, reduce unnecessary expenses as much as possible. Survival is the primary goal during in the bleak midwinter. Keep working and the spring will not be far behind.
For investment institutions, it is believed that many SAFTs and investment quotas will be traded and resold in the market. This bear market will allow investment institutions to distinguish between the passports of wealth in their pockets which can help them win a beautiful β (Beta) and the admission tickets to the casino, which will sink the funds and even build up debts. Please calm down from the revelry of the last bull market, review your financial data, and do a good job in tracking, summarizing and reflecting on each invested project. Not all projects can survive through the bull and bear market, and it is also true for funds. As more and more traditional investment giants flood into the blockchain market, the competition among investment institutions will become more intense in the future. We should reduce the misjudgment caused by emotional decision-making,never give up rational thinking and prudent research, and prepare enough ammunition for the next bull market.
For retail investors, more and more retail investors will maintain a temporary wait-and-see attitude in this bear market, rather than choosing to leave the market permanently. Because compared to before, the proportion of long-term believers in the blockchain industry has increased significantly in this round of market participants. At the same time, there will be more new entrants waiting for the opportunity, joining the waves at the dawn.
For market regulation, after the black swan event of Luna, the attention of regulation on the blockchain will be raised to a new level. It is believed that the agenda of regulatory policies for blockchain in countries led by the United States will be accelerated. This delicate game will continue to play out.
History has proven many times that after each bear market, the next bull market will reach unprecedented heights. This spiral rises, and the cycle repeats. To believe that the market will reward long-termism and those who continue to build, We come nearest to the great when we are great in humility. Stay humble, stay in awe, and Athena Ventures will walk with you. In addition, always do a good job of financial planning to ensure the daily life of yourself and your family. Don't forget that our ultimate purpose is to return to life, to love life. If the wind and storm in the market are too fierce, it is better to turn around and seek a haven of love in the arms of your family. Let's set sail again after the sun rises and the sky clears!
——Athena Ventures team
