Currently, the Bitcoin price is holding above its previous low, confirming the bottom is in. Since Bitcoin’s price is not breaking down any further, we believe that the altcoin market has the potential to see a parabolic move to the upside. This move will only last 30 to 40 days, and will mark an extremely dangerous point in the market. If you are a long term investor, then there is no harm in holding through volatility, but we feel that it is prudent to take back your principal amount.
In today’s briefing, we will discuss the four most pressing influences on the crypto market worldwide. The first is the Russia-Ukraine conflict. Should a military conflict between the two countries occur, the U.S may sanction Russia by removing them from SWIFT. This action could be a catalyst for Russia adopting blockchain technology as a settlement mechanism. In the past, the Bank of Russia has conducted trials using Ripple (XRP), our #1 highest conviction altcoin.
In Canada, we witnessed a widespread protest against the Canadian Government. As events escalated, we saw charities deny the organizers of the protest access to their charity campaigns, and even saw bank accounts get frozen by the government. The decentralized nature of blockchain technology is a solution to this issue, and this event will prompt new innovators and investors to enter the space.
This week, the Biden Administration is going to release an executive order concerning cryptocurrencies. We believe the order will have bullish implications for the market as Sam Bankman-Fried, the founder of the FTX exchange, was one of Joe Biden’s largest campaign donors. This executive order could be the catalyst for our altcoin rally.
The final narrative we are monitoring closely is the threat of rising interest rates. The current trajectory of the Federal Reserve is to raise interest rates, and a top in the stock market will likely form towards the end of March or early April. This will be around the same period that the altcoin rally will end if it occurs. The rally would then end with a crash, just as each parabolic crypto rally does. If you are looking to reinvest lower in the crypto market, consider taking profits in USDC and wait for reversal.