There is a lot of doom and gloom and markets are nervous with all sorts of things happening around the world. Some may move to cash for years and wait for the right timing that probably never comes.
Many others and please count me in as one of them will continue to invest in the same manner they have for decades, knowing that over the long term, they will likely make money even if some of these issues become bigger problems. I have a long-term positive view on many things including crypto assets given all the “problems” ahead.
When the facts change, you should change your mind. Believe it or not, crypto prices have been resilient so far in 2023. Even after the lacklustre September performance, Bitcoin prices are up +63.3% year-to-date, while Ethereum prices are up +40.2%.
He is back! This is what I learned more from my partner in his latest commentary on the crypto assets:
Bitcoin gained almost 4% in September while many traditional assets suffered meaningful losses, underscoring our belief in crypto asset’s diversification properties. The pressure on global markets stemmed from rising government bond yields and higher oil prices.
According to a recent article by the Block, the correlation between bitcoin’s price and equities will continue to diverge over the coming months as the Federal Reserve’s “higher rates for longer” narrative sinks in.
Strong fundamentals played a key role as Bitcoin’s on-chain metrics improved during the month. Stablecoin market capitalization steadied after declining over the last year and digital asset markets remained focused on developments around Layer 2 blockchains and the potential for spot Bitcoin ETF approval in the US market.
Despite encouraging signs for the crypto industry itself, the broader financial market backdrop may remain challenging for the time being. However, Bitcoin’s recent stability suggests that its valuation could begin to recover once the macro backdrop improves going into the end of the year.