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The Perfect Storm

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There is a perfect storm in the crypto market. Cryptocurrency prices have been falling rapidly since yesterday. Out of the bloodbath, Hive also took its share and declined by 20 percent within 24 hours. So what's going on?

The ongoing sales are not only due to the crypto market. Nasdaq 100 stocks, which is the most similar asset class to crypto, have lost 12.5% since the beginning of the year. The size of this ratio will be better understood when considering that the average annual return on Nasdaq 100 shares is 14%. The fact that the FED will increase interest rates throughout 2022 to combat inflation leads to a sale in all stock markets. Since cryptocurrencies are considered riskier assets than stocks, we are facing more aggressive sales.

Bitcoin's price movements are still in a decisive position in the crypto market. I think the most important reason for last night's sales was that it became clear that Bitcoin could not stay above the 40k resistance. At the time of writing this article, the Bitcoin price is at the level of 35.750 and the next resistance for Bitcoin is between 30k – 31k USD. This means that it seems likely that the Bitcoin price will fall by about 20% more. This decrease can be expected to be reflected in altcoin prices at the level of 30%. I don't know if Bitcoin prices will fall to 30k or if the 30k resistance will stop the decline. There is a panic mood in the market right now and my priority is keeping my coins.

Such times offer good opportunities to those who want to buy coins. Residents of the northern hemisphere can look at the latest developments as crazy winter discounts. I started my purchases yesterday with 5000 Leos. I intend to expand my Hive portfolio by taking advantage of this big discount. But before I do this, I want to monitor the market for a few more days.

The revolutionary developments that took place in 2021, both in Hive and throughout the crypto market, are still valid today, but pessimism is dominant in the market at the moment. On June 22, 2021, the Hive price was at the level of 20 cents. Currently, the price of the Hive is 80 cents. In other words, the 6-month yield has declined to the level of 4 times.

As I mentioned, I intend to turn this bull season into an opportunity with gradual purchases. I hope that the dark clouds in the market will dissipate and we will return to the days when we saw plenty of green bars on the charts again.

Thank you for reading.

Image Sources: https://unsplash.com/photos/GBkssTODNT0 and https://giphy.com

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