Selling pressure in the stock market has continued to suppress the crypto market. Bitcoin remains stagnant at $29,000 and continue to recover once the stock market reverses. Bitcoin is already 20% off its low and has potential for another 15-30% rally into July. With externalities such as inflation, geopolitics and an economic slowdown, Bitcoin may see one final spike down in July to form its yearly low. However, until then, a strong rebound should unfold into the middle of July.
This week proved to be a watershed moment for the crypto sector. In Davos, the World Economic Forum has been holding their 2022 annual meeting. This event is highlighted by some of the most influential people in the public and private sectors who convene to talk about the future of the global economy. While there were a number of notable attendees, the emerging players in Web 3.0 received the most media attention. For example, Ripple’s CEO, Brad Garlinghouse, was a key panelist during one of the WEF’s blockchain conferences. In spite of the SEC lawsuit, Ripple continues to expand its overall market share as it disrupts the payments industry. Casper Labs also attended a concurrent event in Davos called Blockchain Hub which has enabled it to gain further media attention.
Even though there is a tremendous amount of uncertainty in the crypto market, we will continue to confidently provide coin-specific news on our top-rated projects and track the development of the coins in our model crypto portfolio. Last week demonstrated the diligence required in the crypto space to ensure one is invested in trustworthy, utility-based projects as one of the world’s biggest altcoins, LUNA, collapsed as it effectively exposed itself as a ponzi scheme. We constantly analyze and conduct a thorough level of due diligence on our coins to ensure they do not meet this same fate which many coins have and will continue to face. LUNA, for instance, raised far too many red flags and would never have helped comprise our model portfolio. Out of all the digital assets available to investors, we favor XRP the most due to its accomplished team, blue-chip connections, governmental and central banking relationships, technical set-up and its myriad of potential price catalysts. For instance, XRP is about to undergo major update XLS20, which will improve performance and add NFT capabilities to the XRP ledger. We also believe that Ripple will settle with the SEC, which will provide XRP and the greater crypto space with regulatory clarity. While seemingly ironic to have our #1 coin be one of the only to ever be embattled with the SEC, our conviction in Ripple’s integrity could not be higher. When this case ends, XRP will see one of the most explosive rallies in crypto’s history.