This is Going To Be An Insane Week
A lot of things happening all at once
So by now, if you logged into Crypto Twitter, you have probably read about Celcius:
From yahoo:
Celsius plunged in late Sunday (ET) trading in a move that both reflected and amplified the tremors running through the crypto-currency ecosystem.
Citing "extreme market conditions", Celsius paused all withdrawals from its network. The main CEL/USD coin dropped as much as 45% on Sunday, continuing a long-tailed slump since the start of the year. It trades at $.195 as of 11:30pm ET (3:30 GMT), vs. $4.45 at the start of the year.
That impact is being felt across crypto, with Bitcoin trading down to $25,154, down nearly 9%, and Ethereum is down 7.5% to $1342.
I would argue that Celsius had nothing to do with ETH or BTC plunge, but rather those plunging caused Celsius to pause withdrawals. Either way, we can say causation or correlation, but prices are going down. Just like Luna had a massive effect on the crypto world, this will have an effect. Although instead of it being a blockchain, this is a centralized exchange with considerable money invested in it.
And by big money - I mean boomers, and can you imagine what will happen if boomers lose their retirement because of the crypto crash?
The US has been first targeting stable coins, so if a crypto crash causes a pension fund to take a significant loss, you know politicians will be looking to find a scapegoat. And here in this substack by Fringe Finance argues Tether will be the next in line.
Stable Coins form the backbone of DeFi - Curve became powerful because it managed its pool of stable coins; Convex became powerful because of how it could control Curve. Abracadabra became powerful because of Magic Internet Money and the collateral you could get from your crypto. End of the day, DeFi is pegged to the USD.
And many of these price drops are sure because of the financial markets, but I also think people are unsure how the regulators will treat them. So now you have two levels of risk.
It’s going to get painful, and if that was not painful enough, look at this article Zerohedge just published:
And here is a graphic in the article that shows what the rates will look like this year if the Stephen Englander is correct:
So not a 100 BPS, but a measly 50 BPS. The context is that we will probably see interest rates double between now and Halloween.
I know BTB has stated multiple times to get your crypto out of stables, and I took heed of that message and have gotten out of stables. Either make a war chest of cash on hand or park it into ETH and BTC
My posts aren’t financial or legal advice. I'm doing daily journals of my life in crypto