SURVIVING THE CRYPTO WINTER: What Experts Are Doing Amid a “Frostbitten” Crypto Market
With the crypto market’s value slumping under US$1 trillion for the first time since January 2021, industry experts have shared both their thoughts and individual approach to dealing with the impacts of these challenging times.
What valuable information did we manage to get from them?
Read on and find out!
KEY TAKEAWAYS
- The insights provided by industry experts may be used to develop a suitable strategy for addressing the impacts of the ongoing “crypto winter”
- Cake DeFi’s approach is simple: “bake” and recalibrate
- Register for a Cake DeFi to use our services and outlast the crypto winter
A GOOD BALANCE OF OPTIMISM & PESSIMISM
If you’re currently on the fence about whether to remain bullish or bearish amid a seemingly weakening crypto market, good news: some of the world’s most iconic investors and industry players have recently given views and insights from both sides of the fence.
Banking on cryptocurrencies nearly reaching a “bottom” is Mike Novogratz, Founder, Chairman & CEO of digital asset merchant bank Galaxy Digital Holdings. In fact, he stated during a recent interview that “We’ve gone to a level that should be close to a bottom: $21,000 Bitcoin (BTC); $1,000 Ethereum (ETH).”
We wish to note that these levels also correspond with the 200MA line - which historically proves that it is, indeed, an excellent time to go long on crypto. Also, at the time of writing, both BTC and ETH prices were going up.
In addition, Novogratz pointed out that “There’s been a tremendous amount of capitulation and fear. Usually not a good area to sell.” And though he agrees that cryptocurrencies could still sink lower, he said that he remains bullish over the long run.
Sharing a similar view is Arthur Hayes, Co-Founder and former chief of BitMEX, who recently tweeted his observation that BTC is forming a base at $20K while ETH is attempting to limit its losses to $1k.
He did, however, warn that should support levels break for BTC (at $20K) and ETH (at $1K), we could expect “massive sell pressure in spot markets.”
4/
— Arthur Hayes (@CryptoHayes) June 14, 2022
If these levels break, $20k $BTC & $1k $ETH, we can expect massive sell pressure in the spot markets as dealers hedge themselves. We can also expect that there will be some otc dealers and that will be unable to hedge properly and might go belly up.
On the other hand, seemingly bullish and unbothered is well-known macro investor Raoul Pal who recently tweeted that he is taking the recent market downturn as an opportunity to strengthen his crypto positions “probably starting next week and into July.”
Why? The former Goldman Sachs executive shared a similar view with that of Novogratz and Hayes: BTC is nearing a reversal or, at the very least, a bottom. He further explained, however, that two factors signal this BTC bottom: the relative strength index (RSI) and the DeMark indicator, which uses a mathematical formula to identify inflection points in price.
As for his overall thoughts, he shared that “In fact, the best way to optimize returns is to add significantly when the market tests the key trend.”
With the weekly RSI at 31 and the lowest ever at 28, that too suggests the low is within striking distance. Don't ever expect to nail the low however...
— Raoul Pal (@RaoulGMI) June 14, 2022
DeMark weekly charts suggest low is next week or in next 5 weeks. pic.twitter.com/rwtfFxjYzH
Also giving investors his two cents is Anthony Scaramucci, Founder of Skybridge Capital, who recently advised investors to “stay disciplined” given the current condition of the market and with threats of higher inflation looming.
That said, he stated that he is “...encouraged by the fact that Bitcoin is above 50% of the overall crypto market cap right now.” He also admitted that SkyBridge Capital has been “buying the dip”, saying that “With incremental cash coming into our fund, we have bought more Bitcoin and Ethereum.”
He also mentioned that this is his “eighth bear market” and that he expects “to survive this one as well”, and added that “...people will look back on this debacle and say I wish I had fresh cash to buy into that.”
THE CAKE DEFI APPROACH: BAKE & RECALIBRATE
In comparison, our proposed approach at Cake DeFi remains practical and fundamentally-based on all the benefits that decentralized finance (DeFi) offers.
In fact, in a recently published online article, our Co-Founder and CEO Julian Hosp shared a simple but highly sensible piece of advice on dealing with any type of economic downturn: take it as an opportunity to recalibrate your portfolio.
Indeed, despite the crypto market’s current condition, he believes that astute investors shouldn’t fear the looming “crypto winter” and that “Long-term crypto investors consider such lows and highs as typical market fluctuations and the perfect time to recalibrate their portfolios.”
Needless to say, all of us at Cake DeFi concurs.
In addition, we also find it timely to share a quick reminder on how you can continue “baking” profits from your cryptocurrencies at this time by simply using our services.
Truly, for most of us, the goal right now is to create a hedge against the impacts of the ongoing crypto winter. Indeed, by using our platform, you can achieve this because all of the DeFi services that we provide access to allow users to generate and receive crypto rewards twice a day - thus, offsetting any potential further drops that may result from the ongoing crypto winter.
So, if you’re not yet familiar with our services, here are some useful information on how they work and how they help you successfully generate passive income from your cryptos:
- LENDING - if you own either BTC, ETH, USDC or USDT, and consider yourself a beginner, you can still earn passive income by using our Lending service. The expected APY is up to 6.5% - depending on which crypto asset you prefer to lend. To know more about our Lending service, you may click here.
- STAKING - do you want to earn passive income from your DASH or DFI? You can do so by using our Staking service. You can gain staking rewards of up to 33.3% APY - depending on which crypto assert you prefer to stake. To know more about our Staking service, you may click here.
- LIQUIDITY MINING - do you want to participate in liquidity mining but you don’t have the budget or knowledge to run a masternode? No problem! Simply use our Liquidity Mining service and gain Liquidity Mining rewards of up to 52% APR - depending on which liquidity mining pool you’ll participate in. To know more about our Liquidity Mining service, you may click here.
- BORROW - it’s definitely possible to get funds and generate cash flow without having to sell your cryptos. How? Simply use our Borrow service to use your DFI and other crypto assets as collateral to receive funds in the form of DUSD stablecoin - which you can use to purchase items, support your lifestyle or participate in other investment opportunities. To know more about our Borrow service, you may click here.
FINAL THOUGHTS
All things considered, crypto investors are now given a choice to come up with a suitable strategy for themselves based on the suggestions inputs provided herein.
Although none of these are financial advice, we can all agree that there’s value in considering the insights provided by industry experts and that, in the face of challenging times, it is highly sensible to:
- Stay disciplined
- Stay focused on the long-term rewards of your investments
- Recalibrate your portfolios
- Strengthen your portfolio by “buying the dip” within your means
- Create a hedge and continue earning crypto rewards by using our services
If you want to use our services but are not yet a registered Cake DeFi user, you may click here to sign up and start generating passive income with us.
You will get US$30 worth of DFI when you register successfully and make a deposit of US$50 or more, and allocate the amount for at least 28 days into either our Lending, Staking Freezer or Liquidity Mining Freezer service.
You may also click here for information on how safe and transparent our platform is, and here for information on how Cake DeFi remains financially strong as a fintech company and highly reliable as a DeFi platform.
And that’s It! Sign-up now and outlast this crypto winter with us!