– A macro breakdown caused by factors including tech stocks struggling, the war in Ukraine and inflation/interest rate worries has precipitated a flight to safety out of more speculative stocks.
– Bitcoin (BTC) was directly implicated in the Terra debacle. Terra was buying Bitcoin to stabilize Luna in the lead-up to the crisis, which caused a large one-time selloff of Bitcoin.
– I think it’s time to look at the fundamentals of crypto projects and start moving away from projects that use inflated returns to drive up the value of the protocol.
– This isn’t crypto’s first bear market and won’t be its last. Were seeing a downturn with traditional assets as well, which in many ways signifies the maturation of digital assets as they ebb and flow in tandem with the economy.
– Crypto is still hobbled by problems that first showed up in 2017. There are still too many security and scalability problems with now-legacy platforms, and the consequences have been losses in the hundreds of millions.
– Three trends show the crypto market is poised for continued growth:
– A huge talent migration from big tech into crypto.
– Increasing institutional funding for crypto projects.
– Increasing penetration of crypto assets.