Bear market cycles are inevitable in the world of finance, including the cryptocurrency market. During these periods, asset prices experience prolonged declines, and investor sentiment turns pessimistic. While bear markets can be challenging and unsettling, they also present unique opportunities for savvy investors to make money and build wealth. In this article, we will explore effective strategies that can help you navigate how to make money in bear market cycles.
Top Strategies on How to Make Money in Bear Market Cycles
1. Short Selling:
Short selling is a popular strategy employed by investors in bear markets. It involves borrowing a cryptocurrency or other asset from a broker and selling it at the current market price with the expectation that its value will decrease. Once the price declines, the investor buys back the asset at a lower price and returns it to the broker, pocketing the difference as profit. Short selling enables investors to profit from falling prices, effectively “selling high and buying low.”
2. Investing in Defensive Assets:
During bear markets, certain assets tend to perform relatively well due to their defensive nature. These assets typically have lower correlation with the broader market and are considered safe-haven investments. Examples include gold, government bonds, and stablecoins. Allocating a portion of your portfolio to defensive assets can help mitigate losses and preserve capital during turbulent market conditions.
3. Dollar-Cost Averaging:
Dollar-cost averaging is a disciplined investment strategy that involves investing a fixed amount of money at regular intervals, regardless of the asset’s price. In a bear market, asset prices are typically lower, enabling investors to accumulate more units of the asset with each fixed investment. Over time, this approach can lead to lower average purchase prices and potentially significant gains when the market eventually recovers.
4. Buy the Dip:
“Buy the dip” is a common mantra among seasoned investors during bear markets. This strategy involves purchasing assets when their prices experience sharp declines, presenting attractive buying opportunities. By strategically buying at lower price points, investors position themselves to benefit from potential price rebounds when market sentiment improves.
5. Value Investing:
Value investing involves identifying assets that are trading at a discount relative to their intrinsic value. During bear markets, many fundamentally strong assets may experience significant price declines due to market sentiment. By conducting thorough research and identifying undervalued assets, value investors can capitalize on the potential for substantial gains when the market sentiment eventually turns positive.
6. Focus on Dividends and Yield:
In bear markets, some stocks and cryptocurrencies may continue to offer attractive dividend yields or staking rewards. Investing in assets that provide a steady income stream can help offset losses from price declines and add a layer of stability to your portfolio.
7. Short-Term Trading:
Short-term trading strategies, such as day trading and swing trading, can be profitable during bear markets. These strategies involve exploiting short-term price fluctuations and market inefficiencies to generate quick profits. However, short-term trading requires in-depth market knowledge, disciplined risk management, and a keen eye for market trends.
8. Diversification:
Diversification remains a crucial strategy, regardless of the market conditions. By spreading your investments across different assets, industries, and geographical regions, you can reduce the impact of a single asset’s poor performance on your overall portfolio. Diversification helps manage risk and can provide a more stable investment experience during bear markets.
Conclusion:
Bear market cycles can be daunting, but they also offer valuable opportunities for investors to capitalize on market downturns and build wealth. Employing strategies such as short selling, investing in defensive assets, dollar-cost averaging, buying the dip, value investing, focusing on dividends and yield, short-term trading, and diversification can help position you for success during bear markets.
Remember that successful investing requires discipline, a long-term perspective, and continuous learning. Staying informed about market trends and being adaptable in your approach will contribute to your ability to navigate bear markets effectively. As with any investment strategy, it is essential to assess your risk tolerance and financial goals before implementing these approaches. By combining prudent risk management with these strategies, you can increase your chances of making money and weathering the storms of bear market cycles with confidence.
JP Morgan, one of the largest banking institutions in the world, has called off its signal for a possibility of a recession in the US this year.
JP Morgan had signaled that the US economy could be in danger of economic contraction due to heightened risk but has now hit a turnaround after the economy showed signs of rebounding.
JP Morgan, one of the most prominent banking institutions in the US and the world, has called off its signal that the US economy could be set for a recession in 2023 after noticing a reduction in pre-exposure risks. However, it still doesn’t believe that all risks are entirely off the table, citing the dangers of the Fed rates policy that has seen 11 hikes so far.
We doubt the economy will slip into a mild contraction in the next quarter- JP Morgan
The US economy has been rocked by high inflation in 2023 and multiple other economic maydays like the banking system collapse and debt ceiling crisis which sent signals of a possible recession. JP Morgan & Chase bank was one of the first financial services providers to signal in 2022 that a recession could be on the horizon for the world’s largest economy.
The weakening of pre-exposing factors to a recession in the United States has sent a wave of hope across international markets that the US economy would be safe from a recession after all. The country’s inflation rate is back at 3% while the labor and jobs sector remains strong. The country’s 11 fed rate hikes are sustainable without too much market constraint.
Additionally, the Banking system collapse has been partially averted, with banks providing over $110 billion in working capital credit funds to keep them afloat. Also, President Biden struck a deal with Congress to lift the US Debt ceiling till 2025 to give a chance to resuscitate the economy and avoid it being plunged into untold economic havoc.
Michael Feroli, the chief economist at JP Morgan, told their clients that recent metrics indicate that Q3 2023 would see the US economy grow at about 2.5% compared with their previous forecast of 0.5%.
“Given this growth, we doubt the economy will quickly lose enough momentum to slip into a mild contraction as early as next quarter, as we had previously projected,” Feroli wrote.
He also mentioned the aversion to the aforementioned economic crisis as an integral part of giving the US economy another chance at growth and development. He also highlighted productivity gains due in part to the broader implementation of artificial intelligence, which has seen industries grow alongside softened hirings and positive jobs market reports.
Rates still keep recession possibilities alive.
Rate hikes bring more pain to the market as investors borrow money at a higher cost. As a result, productivity decreases as investors tend to limit their expenditures. In connection with this economic concept, Ferolli said that rates hike in the US currently keep the recession possibility alive.
The country has seen 11 interest rates hike since March 2022, totaling 5.25 percentage points, yet the inflation rate remains above the Central Bank target of 2%. As such, it calls for more rates hike or sustenance of the current policy for extended periods, which means borrowing will remain expensive in the markets.
“While a recession is no longer our modal scenario, risk of a downturn is still very elevated. One way this risk could materialize is if the Fed is not done hiking rates,” Feroli said. “Another way in which recession risks could materialize is if the normal lagged effects of the tightening already delivered kick in.”
He, however, expects the Federal Reserve to start cutting rates around Q3 2024, which keeps the possibility of reversed economic growth alive. He also noted that current market pricing strongly points toward a recession.
A New York Fed indicator shows that the difference between 3-month and 10-year treasury yields indicates a chance of a contraction in the next 12 months. This concept is drawn using the inverted yield curve predictor method, which has been reliable in forecasting recessions since 1959.
Keep watching Fintech Express for more updates on Banking and other Fintech-related developments.
Ilya Lichstein and Heather Morgan have pleaded guilty to being original hackers of the bitcoin exchange Bitfinex in 2016, which resulted in a loss of $4.5 billion.
The guilty plea by Ilya Lichstein and Heather Morgan came in Washington DC, which also included ties to money laundering and fraud charges.
Ilya Lichstein and Heather Morgan pleaded guilty to hacking the Bitfinex bitcoin exchange in 2016, shedding light on who was involved in the heist after years of investigations. Now, the couple faces other charges like money laundering and conspiring to defraud the united states government.
Ilya Lichstein and Heather Morgan plead guilty in a multibillion hack case
Ilya Lichstein and Heather Morgan have been under investigation in the U.S. concerning Bitfinex hacking for years. Now, Ilya Lichstein has pleaded guilty in a Washington DC federal court to being the original hacker of the exchange leading to a theft that saw the exchange suffer a $4.5 billion loss.
At the same time, his wife, Heather Rhiannon Morgan, stepped up from the audience to enter her guilty plea on two charges, money laundering and conspiring to defraud the U.S. government. Now, Lichstein faces a maximum jail term of 20 years for money laundering though it is yet to be determined if he will face more charges.
His wife, Heather Morgan, has been freed on a $3 million bond since her arrest, which marks over one year since the two last saw each other. The two had been arrested in February 2022 in a process that resulted in the DOJ seizing more than 94,000 bitcoin worth over $3.6 billion. The seizure was the largest ever done by the US DOJ.
Now, the DoJ has also made another seizure worth approximately $ 475 million, per a statement from the authorities. Bitfinex also followed suit and released a statement saying it has engaged in unprecedented efforts since the hack to refund its customers fully.
“Bitfinex also diligently worked with the U.S. Department of Justice to identify the perpetrators of the hack, recover the stolen bitcoin, and bring the hackers to justice,” the company said. “After seven years, those efforts have come to fruition.”
Keep watching Fintech Express for more updates on this and other fintech-related developments.
Matter Labs have denied allegations that it copied “performance-critical components” from Polygon Zero’s “Plonky2.”
Matter Labs CEO Alex Glochowski says the allegations against them are unfounded, misleading, and disappointing
Matter Labs CEO Alex Glochowski has responded to an August 3rd report from Polygon Zero that claims they copy-pasted their code when building Boojum. Polygon Zero claims that Plonky2’s code was seen on the latest product by Matter Labs dubbed “Boojum,” which did not attribute to the original code’s author.
Matter Labs CEO Alex Glochowski denies Polygon Zero plagiarism claims
Expressing disappointment Matter Labs CEO Alex Glochowski has denied Polygon Zero’s allegations in a Twitter post, saying that their decisions on building zkSync were based on integrity and transparency.
Polygon Zero posted a blog post on August 3rd claiming that Matter Labs copied its code without proper author attributions. It said such behavior harms the developer ecosystem and could hurt smaller development teams across the industry as better-funded companies take advantage of their work.
While Matter Labs CEO Alex Glochowski debunked the claims, he did not completely assert that Boojum did not use Plonky’s code. He said that they only based 5% of their code on Plonky2. He also added that they had some reused code that they worked with and gave clear attribution.
Every decision we make as a team towards building @zksync is driven by our ethos, which is based on integrity and transparency. We have made honest mistakes in the past, but we always did our best to openly acknowledge them and take responsibility. And will always do so in the… https://t.co/4yjpSCHC2d
“Only ~5% of the Boojum code is based on the code of Plonky2. For the reused code, a clear attribution is provided in line #1 of the main file of the module,” he said.
He also said that he was very “disappointed” in the Polygon Zero team since it had also committed a similar mistake, and Matter Labs did not take it as a major issue. In his argument, Matter Labs CEO Alex Glochowski said that Plonky2 and Boojum are implementations of RedSHift construction, which was introduced by his team 3 years before Plonky2 paper 2.
As such, the Plonky2 team never gave matter labs credit though they referred to RedShift in their white paper. However, Matter Labs never bothered as it was glad to see someone else build on and improve their work.
However, he also conceded that there are either attribution standards that they should have used and will be more mindful of going forward. Additionally, he also called out Polygon Zero for going straight public with claims that made it look like Boojum was a total copy-paste work.
“Open Source is all about genuine cooperation. If the Polygon Zero team wanted additional credit, the easiest way would have been to submit a pull request which we would have happily accepted. Going ahead with public accusations of a complete lack of attribution (even if it was true, which is not the case here) is anything but the spirit of the Open Source movement. If you’re not happy about others – including potential competitors – using parts of your code, maybe Open Source is not for you?” Part of the tweet reads.
Keep watching Fintech Express for more updates on crypto and other Fintech related developments.
Summer is a time of sunshine, adventure, and plenty of free time for teenagers. While many teens use this period for relaxation and leisure, others see it as an opportunity to start their entrepreneurial journey and earn some extra money. Summer side hustles offer teens the chance to develop valuable skills, gain work experience, and build financial independence. Whether you want to save up for college, fund a special purchase, or simply have some spending money, there’s a summer side hustle perfect for you. In this article, we’ll explore 60 profitable and exciting summer side hustles suitable for enterprising teens.
60 Profitable Summer Side Hustles for Teens
Babysitting: Babysitting remains one of the most classic and reliable side hustles for teens during the summer. Parents are often looking for responsible and trustworthy individuals to take care of their children while they’re at work or need a night out.
Dog Walking or Pet Sitting: If you’re an animal lover, offering dog walking or pet sitting services can be a rewarding and fun way to spend your summer. Many pet owners appreciate reliable and caring individuals to look after their furry friends.
Lawn Mowing and Gardening Services: Help your neighbors maintain their lawns and gardens by offering lawn mowing, weeding, and gardening services.
Car Washing and Detailing: Set up a car wash station in your driveway and offer car washing and detailing services to busy individuals in your community.
Running Errands for Neighbors: Save your neighbors time by offering to run errands such as grocery shopping, picking up dry cleaning, or delivering packages.
Lemonade Stand: The classic lemonade stand is a timeless summer side hustle. Set up in a high-traffic area, and don’t forget to offer some unique flavors to stand out.
Selling Homemade Crafts or Artwork: If you’re creative, consider making and selling homemade crafts or artwork at local markets or online platforms like Etsy.
Tutoring: Leverage your academic strengths and offer tutoring services to younger students in subjects you excel in.
Online Tutoring: Take your tutoring services online and reach a wider audience through platforms like Chegg Tutors or Wyzant.
Selling Homemade Baked Goods or Snacks: Bake delicious treats like cookies, muffins, or granola bars, and sell them at local events or to friends and family.
Photography Services: If you have a knack for photography, offer your services for events like birthday parties or family portraits.
Garage Sale: Organize and sell items you no longer need at a garage sale, or offer to help others organize theirs.
Virtual Assistance: Provide virtual administrative assistance to small businesses or entrepreneurs by managing emails, scheduling, or data entry.
Grocery Shopping for Others: Offer grocery shopping services for elderly or busy individuals who may find it challenging to shop for themselves.
Organizing and Decluttering Services: Help people declutter and organize their homes during the summer months.
House Cleaning or Organizing: Offer house cleaning or organizing services to busy families who need help tidying up.
Selling Plants or Flowers: If you have a green thumb, grow and sell plants or flowers from your garden.
Handyman Services: Help with minor household repairs and tasks like fixing leaky faucets or assembling furniture.
Social Media Management for Local Businesses: Assist small businesses in managing their social media accounts and creating engaging content.
Music Lessons: If you play an instrument proficiently, offer music lessons to aspiring musicians.
Digital Designs or Graphics: Create and sell digital designs, graphics, or templates on websites like Creative Market or Etsy.
Pet Photography or Instagram Management: Take photos of pets for their owners or manage Instagram accounts for pet owners to showcase their furry friends.
Renting Out Sports Equipment: If you have sports equipment like bikes, paddleboards, or skateboards, rent them out to fellow enthusiasts.
Painting Fences or Outdoor Structures: Offer your painting services to spruce up fences, sheds, or other outdoor structures.
Video Gaming Skills: Rent out your video gaming skills to help others advance in games or complete difficult levels.
Building and Selling Wooden Crafts: Craft and sell small wooden items like birdhouses, planters, or coasters.
Car Wash Fundraiser: Organize a car wash fundraiser for a local charity or cause and invite friends and neighbors to participate.
Collecting and Selling Recyclables: Collect recyclable items like cans and bottles and redeem them for cash at recycling centers.
Babysitting at Events: Offer babysitting services at weddings, parties, or events where parents might need someone to watch their kids.
Electronics Repair: Repair and resell electronics or gadgets like smartphones, tablets, or game consoles.
Custom Jewelry or Accessories: Create and sell custom-made jewelry or accessories like bracelets, necklaces, or keychains.
YouTube Channel or Podcast: Start a YouTube channel or podcast on a topic you’re passionate about and monetize it through ads or sponsorships.
Paid Surveys or Market Research: Participate in online paid surveys or market research studies to earn some extra cash.
Social Media Promotion for Local Events or Businesses: Help promote local events or small businesses through social media platforms.
Car Detailing for RVs or Boats: Offer your car detailing services to owners of RVs or boats who want to keep their vehicles looking pristine.
Scented Candles or Soap: Create and sell scented candles or soap bars in various scents and designs.
Writing and Selling E-books or Short Stories: If you enjoy writing, create and sell e-books or short stories on platforms like Amazon Kindle Direct Publishing.
Renting Out Your Swimming Pool: If you have a swimming pool, offer it for rent for pool parties or gatherings.
Carpool Services: Offer carpool services for neighbors or friends’ families who need transportation.
Small Outdoor Events: Organize and host small outdoor events like movie nights, picnics, or game tournaments.
Custom T-shirts or Merchandise: Design and sell custom T-shirts, hoodies, or other merchandise online.
Virtual Fitness or Dance Classes: Offer virtual fitness or dance classes to individuals who want to stay active during the summer.
Car Detailing for Classic or Vintage Cars: Provide car detailing services specifically tailored to classic or vintage car owners.
Website Design or Graphic Design Services: Design and create websites or graphics for individuals or small businesses.
Event Planning or Party Coordination: Help organize and plan events or parties for clients who need assistance.
Backyard Camping Spaces: Offer your backyard as a camping space for individuals or families looking for a unique camping experience.
Cooking or Baking Classes: Teach cooking or baking classes online or in-person for those interested in learning new culinary skills.
Photography or Videography Equipment Rental: Rent out your photography or videography equipment to aspiring photographers or videographers.
Summer Camp for Younger Kids: Organize and run a summer camp for younger kids in your neighborhood.
Outdoor Game Rentals: Rent out popular outdoor games like cornhole or giant Jenga for events or parties.
Art Classes or Workshops: Host art classes or workshops for those interested in exploring their creative side.
Camping Equipment Rental: Rent out camping equipment like tents, sleeping bags, or camp stoves for summer camping trips.
Virtual Language Lessons: Offer language lessons to kids or tourists seeking to learn a new language.
Photography or Videography Services: Offer your photography or videography services for events or special occasions.
Backyard Movie Nights: Host outdoor movie nights in your backyard and charge admission for the viewing experience.
Personal Shopping or Styling: Help individuals find and put together fashionable outfits as a personal shopper or stylist.
Fashion Reselling: Buy and resell second-hand clothing items in good condition through platforms like Poshmark or Depop.
Bike Repair and Maintenance: Provide bike repair and maintenance services for your community’s cycling enthusiasts.
Virtual Art Therapy Sessions: Host virtual art therapy sessions for individuals seeking a creative outlet and emotional support.
Remote Tech Support: Offer remote tech support for individuals who need help with computer issues or software installations.
Conclusion:
Summer presents an excellent opportunity for teenagers to venture into various side hustles to earn money, develop skills, and gain valuable work experience. The possibilities are vast, from traditional options like babysitting and lawn mowing to modern opportunities like online tutoring and social media management. When considering a summer side hustle, make sure to choose one that aligns with your interests, skills, and available time. Regardless of which summer side hustle you choose, remember that consistency, dedication, and a positive attitude will ensure your success. Embrace the entrepreneurial spirit, and make the most of your summer by embarking on a rewarding and profitable side hustle!
Improving financial habits is essential to building wealth and avoiding common pitfalls that can keep you financially constrained. Here are 30 financial habits that could be holding you down.
30 Financial Habits Holding You Back From Financial Success
Living beyond your means: Spending more money than you earn can lead to debt and financial instability.
Not budgeting: Failing to create and stick to a budget makes it difficult to track and control your expenses.
Ignoring debt: Ignoring debts can result in mounting interest and late fees, making it harder to escape debt traps.
Relying on credit cards for everyday expenses: High credit card interest rates can lead to significant debt if not managed properly.
Lack of emergency savings: Not having an emergency fund can leave you vulnerable to unexpected expenses or financial crises.
Neglecting retirement savings: Delaying retirement contributions can severely impact your financial security in the long run.
Not investing: Avoiding investments means missing out on potential opportunities for growth.
Falling for get-rich-quick schemes: Risky investments or scams can result in significant financial losses.
Not seeking financial education: Lack of knowledge about personal finance can hinder your ability to make informed decisions.
Prioritizing wants over needs: Focusing on immediate gratification can lead to neglecting essential expenses.
Paying high fees and charges: High bank fees and credit card charges can eat into your savings over time.
Not negotiating prices: Failing to negotiate can lead to overspending on various goods and services.
Impulsive gambling or lottery habits: Relying on luck for financial stability is not a sustainable strategy.
Neglecting insurance coverage: Not having appropriate insurance can lead to financial devastation in case of emergencies.
Borrowing money from friends or family: Relying on loans from loved ones can strain relationships and lead to financial dependency.
Not tracking your expenses: Without monitoring your spending, it’s challenging to identify areas where you can cut costs.
Ignoring your credit score: A poor credit score can impact your ability to access favorable loan terms or even rent an apartment.
Using retail therapy to cope with stress: Emotional spending can sabotage your financial goals.
Sticking with high-interest loans: Not refinancing or consolidating high-interest debts can prolong financial struggles.
Overspending on housing: Committing too much of your income to housing costs can leave little room for savings or investments.
Not renegotiating bills and contracts: Regularly reviewing your bills and renegotiating contracts can save you money.
Paying for unused subscriptions: Neglecting to cancel unused subscriptions can drain your finances unnecessarily.
Ignoring tax planning: Not optimizing your taxes can lead to missed deductions and higher tax liabilities.
Not setting financial goals: Without clear goals, it’s difficult to stay motivated and on track with your finances.
Neglecting to update your will and estate plan: Not having an up-to-date estate plan can create complications for your loved ones in the event of your passing.
Neglecting your health: Health expenses can be significant, so neglecting your health can strain your finances.
Succumbing to peer pressure: Trying to keep up with the spending habits of others can lead to financial strain.
Not seeking professional financial advice: Not seeking help from a financial advisor can result in missed opportunities and poor financial decisions.
Conclusion
By identifying and addressing these habits, you can start making positive changes to your financial situation and work toward a more prosperous future. Remember, financial freedom is achievable with discipline, planning, and perseverance.
Fitch announced on Tuesday that it was downgrading the US long-term foreign-currency issuer default rating from AAA to AA+.
The US Credit Score was always on the balance of being revised downwards by Fitch following the 2023 debt ceiling crisis.
US Stock futures fell sharply following the downgrade, starting a domino effect globally.
US Credit Score has been revised downwards by Fitch from AAA to AA+ following the highly contested debt ceiling crisis despite the US suspending it. Consequently, US, Europe, and Asian stocks are trading much lower on Wednesday.
Fitch downgrades US Credit Score from AAA to AA+
The US debt ceiling crisis threatened global economies as the world’s reserve currency issuer would have stepped into an immediate recession if it were to default on its debt. Analysts expected the US to lose at least 8 million jobs at such an event and be the first time in history that it went that route.
However, Speaker MC Carthy and President Joe Biden agreed to forge a deal that would see Congress suspend the debt ceiling till January 2025, when he gets out of office. This deal, however, did not solve anything, as government spending is still up despite inflation falling sharply to 3% in June.
Since the suspension of the debt ceiling temporarily shielded the US from an imminent downward revision of its debt default scores, government spending is up by over a trillion dollars. This has prompted Fitch to go ahead and lower the US Credit Score to AA+, a move that has yet to be well received by financial officials in the country, including Treasury Secretary Janet Yellen.
Following the news, US stock futures traded sharply lower, a fall of almost 300 points for the Dow Jones Industrial Average at Wednesday’s US market opening. Elsewhere, the Pan-European Stoxx 600 index dropped by 1.6%, with all sectors trading in the red. The Asia-Pacific region also plunged across the board at the same time.
Keep watching Fintech Express for more updates on this and other Fintech Related developments.
MicroStrategy has added another 14.5M worth of Bitcoin after adding 12,333 in June.
The company says it plans to raise upwards of 750 million dollars to invest in the currency, among other corporate duties.
MicroStrategy’s Bitcoin buying spree continues as the company bags 14.5 million dollars worth of Bitcoin amid a bigger plan to invest over $ 750 million more in the coin. The increased interest from MicroStrategy comes as its chair Michael Saylor thinks the next wave of institutional investments is imminent.
Saylor keeps filling MicroStrategy’s Bitcoin bags
Saylor’s MicroStrategy now holds 152,800 bitcoins worth over $4.53 billion after adding 467 more coins at $14.5 million. The company has also released a filing indicating that it plans to raise as much as $750 million via share sales to invest in the coin, among other general corporate purposes.
The $750 million would be allocated to Bitcoin investment and other roles like working capital deployment and debt repurchase. Saylor has been vocal about investments in Bitcoin for multiple years now. He started buying Bitcoin in 2020, citing the need for the company to hold cash due to an eroding threat of inflation.
He was bashed for the company losing millions in unrealized losses over the bear market from November 2021 through 2023. However, MicroStrategy continued “filling its bags” till Q2 2023, when it added over 12.3K bitcoins. It has now added 467 more coins and plans to keep buying as it is raising money to add to its capital.
Saylor is a strong believer in Bitcoin, and now that BlackRock and other TradFi institutions have started flocking into Bitcoin ETFs, he thinks that it’s “the best thing that ever happened to Bitcoin,” meaning he would keep buying the coin. Keep watching Fintech Express for more updates on this and other fintech-related developments.
Bitcoin, the worlds premiere cryptocurrency, drooped in price by 4% in July
The coin has never lost more than 10% in July throughout its history
Bitcoin price dropped by 4% in July, a market move that upholds its history of not dipping by over 10% in the month. The market movement came when major regulatory uncertainties and lawsuits rocked the crypto market.
Bitcoin price slid down by 4% in July
Blockchain data shows that the Bitcoin price slid down by only 4% in July despite a series of FUD events. In that period, The US SEC charged HEX founder and Alex Mashinsky of Celsius; Curve Finance was in trouble. Additionally, US SEC had a court battle with Ripple, Coinbase, and Binance, among other market-dooming events.
Though Ripple partially won against the US SEC, a judge in the US SEC case against Terraform Labs ruled that the ruling in the Ripple case would be applicable as it is not yet beyond doubt that public sale and secondary sale of crypto assets should not fall under the same regulations.
This move came as an undercutting to the Ripple win that the Public sale of XRP does not fall under securities laws through secondary sales, creating a bearish sentiment since the US SEC is set to appeal the ruling as time passes.
The drop was, however, not very significant to the year;y performance as the coin has only dropped in price two more months, with May recording a slump by 7.1% and February having a 0.01% drop, and at the same time, all other months apart from April had gains of over 10%.
This price movement is expected to reverse through 2025 as the completion of Bitcoin 4 year historical halving cycle culminates. Keep watching Fintech Express for more updates on this and other fintech-related developments.
Curve protocol was exploited on Sunday evenin putting at risk between $50 and $100 million of user funds locked in various stablepools (alETH/msETH/pETH) using Vyper 0.2.15. The reason is thought to be a malfunctioning reentrancy lock The exploit resulted in a sharp drop in the Total Value Locked (TVL) across multiple DeFi protocols mainly Curve which registered a 48 percent decline on a weekly basis. AAVE and Convex were also severely affected as users decided to temporarily step away from using their services.
As for CRV itself, it revisited its range low versus USDT last night European time before bouncing back up from the support area. As discussed few weeks ago, it is usually when swing buyers are entering.
The formed low was once swept then touched briefly before the price reversed aggressively. It is also visible how the Volume Profile indicator’s most actively traded zone on the 1-week chart is right around the demand area. Buyers are prevailing there. The RSI indicator is entering the oversold area. Looking from the other perspective though, we can clearly see a Lower High after Lower High being built on the screen and right below the 21-EMA on the Weekly timeframe. BTC’s disappointing performance recently does not favor an altcoin market rally.
BTC and ETH dissapoint
Bitcoin bulls finally gave up the fight to regain positions in the former $29,500 – $31,500 range and we can see the price slipping towards either the daily chart uptrend diagonal or the formed support/resistance area formed around the $27,000- 27,200 mark. The area was acting as a magnet for the BTC price in the March-June period.
Zooming out to the Weekly timeframe chart, the most probably zone of support for bulls might be situated somewhere between $25,000 (former weekly highs) and $20,000. The long-term diagonal support line is crucial in defending the bulls’ dreams for an UP ONLY season.
The monthly close and the price action on the 1M timeframe does not tell us much. What is clear is that there is a narrow range being formed above the fast EMA while BTC is still not giving up the formed $27,000 low.
The clear fact, though, is that overall liquidity in the market is low and every significant event is hitting particularly bad the altcoin market while BTC remains relatively stable.
ETH
ETH once again hit the lower boundary of the Ascending Triangle on the Daily timeframe chart, but for the moment is not showing signs of strength. The trading range is narrowing and the spikes are getting smaller which usually suggests a big impulse move in the short-term. For the moment, however, it is difficult to predict the direction.
Things look slightly better on the higher timeframe where the price is still supported by the fast EMA and is above the local most actively traded zone as per VPVR. Below, $1,670 is a significant support level historically speaking.
