Bitcoin has met our target at $27,000 with a gap just higher to $28,000. BTC’s recent price action is likely a blow-off top before equities and digital assets begin to turn down. Bitcoin’s bullish trend should begin to weaken whether it be by forming a channel or a trading range. If we do see one last surge up which is possible into the beginning of April it has a high probability of marking an exhaustive end to this bull trend.
The traditional financial system is being tested to an extreme degree, and it is likely that this bear market will claim firms that are a part of the legacy banking system. What we have learned from this recent banking crisis is that crypto is the canary in the coal mine. Crypto platforms such as BlockFi, Voyager, and FTX were early alarm bells that traditional finance was in trouble. Now is one of the most dangerous times to be a crypto investor. Regulatory firms such as the SEC and CFTC will utilize their influence to stifle the growth of the crypto industry, and attack companies and blockchains networks. This seems to be an attempt by these agencies to award incumbent firms such as JP Morgan and Goldman Sachs more influence over Web 3.0.
Another challenge crypto investors may face is with Bitcoin. As we start to see confidence in the dollar wane, public consensus will likely be that Bitcoin is the only safe alternative currency. Governments could use their power to reduce the number of on-ramps that everyday people have to mainstream digital assets such as Bitcoin.
Even though the crypto market will likely experience negative price action into the summer, XRP has the potential of defying market expectations. XRP has continued to consolidate and as the lawsuit comes to a climax, Ripple has a strong chance of coming out of this unscathed. Even in a declining market, we could envision XRP enjoying a well-earned speculative rally after consolidating for several months.