There’s no problem that the cryptocurrency space is a combination of the most volatile assets on the planet. Hence, what was seen over the last couple of weeks or even in the past few days, in particular in times of corrections, is not at all unheard of.
Historically, cryptos go throughout boom and bust cycles, possibly faster and more quickly, than other asset classes or asset types. However, this issues with the territory to be an investor in crypto. And so do we believe this is the end of the cycle? Not. We suppose what drove the volatility more recently was a little more of a perfect storm of negativity.
A Ton of Jawboning, a Ton of Negative Gossip on Twitter, in Particular, Elon’s Involvement, Tesla.
These are significant problems with many potentials to swing markets significantly on headlines and sentiment, not necessarily on the underlying fundamentals.
And then, if you stare at the technical backdrop, most notable coins did swing into moderately overbought territory. And so not at all shocking to see some of these negative catalysts convert technicals back in the other direction.
We’re not as concentrated on the coins themselves as the underlying use cases. That’s really where we believe there’s a lot of innovation and many opportunities yet to appear.
So from the coins to the practice cases and everything in between. And, of course, blockchain technology underpins this concept ultimately.
Moreover, the interesting part about it is this innovation story. Especially if you think about the last cycle, pre-COVID had some degree of innovation drought. That may seem like an extreme statement. There were indeed pockets of innovation, but we didn’t see broad-based innovation to encourage meaningful productivity enhancements during the cycle.
This is one of the latest areas of innovation. Thus, when you consider blockchain technology, it is the platform that probably can support and develop the start of businesses or industries that we can’t even necessarily understand today. It’s very related to web 2.0 and the advent of Uber and Lyft when 4G technology came into the equation. This is the next repetition of that.