In this video, the speaker, Sam, discusses the bearish state of the cryptocurrency market, with Bitcoin touching down to under $33,000. He emphasizes the importance of investing in Bitcoin despite the red market and talks about the importance of not investing too heavily in altcoins. Sam also highlights the macro environment affecting the market, with the Fed tightening, global wars, and supply chain constraints. He warns of a possible worst-case scenario with Bitcoin falling as low as $22,000 if the market continues to go down. However, Sam remains bullish about Bitcoin’s long-term prospects and encourages buying in during market dips.
The Crypto Market: Worst Case Scenario and Investing in Bitcoin
How’s it going everyone, it’s Sam here with an update on the cryptocurrency market. Right now, we’re seeing a lot of red and Bitcoin has touched down under 33,000. Despite this, let’s talk about why you still want to be investing in Bitcoin and some possible positives to look forward to.
The Bearish Market
The crypto market has been down week after week, with altcoins bleeding into Bitcoin. I have been emphasizing buying Bitcoin rather than investing in altcoins, with a few exceptions such as Ethereum, Solana, and Terra. The macro environment is not just affecting the crypto market, but also the stock market. The stock market has been down 2% since last week and 5% on Thursday with no signs of stabilization.
Long positions have been liquidated, with over $236 million worth of liquidated longs in the past 24 hours alone. In the last five days, there has been $1 billion worth of liquidated longs.
The Worst Case Scenario and Benefits of Investing in Bitcoin
Despite these factors, there are still positives to look forward to, such as new adoption. Millions of people will be able to get Bitcoin in their retirement accounts via Fidelity. However, adoption is still in the distant future, and the macro environment remains a challenge with the Fed tightening, global war, and supply chain constraints.
The worst-case scenario for Bitcoin in the short term would involve falling to around the 30,000 mark, and if the market continues to be down, falling as low as 28.5. After that, investors should keep an eye out for the 200 week moving average around 22,000.
I suggest buying Bitcoin when it’s at its lowest point as its fundamentals remain strong. While some stocks may outperform Bitcoin, we don’t know which stocks will perform well in the future. With that said, I believe that Bitcoin will outperform nearly anything of its size over the next five to ten years.
Thank you for reading! Don’t forget to hit the like and subscribe buttons, and check out FTX and Unstoppable Domains links in the video description below to keep track of different cryptocurrencies with ease.