the worst time in crypto

the worst time in crypto

 one of the worst weeks in crypto as the bear market seems to be officially fully underway before we get started I just want to extend my condolences to anyone who had significant exposure to the terra luna ecosystem and suffered terrible losses my heart goes out to everyone I'm truly sorry and empathizes deeply with your unfortunate experience in this situation, no I wasn't invested in the ecosystem and it wasn't because I was avoiding it or expected something this profoundly negative to happen I was just comfortable with my portfolio at the time and wasn't looking to further diversify at the end of the day this type of event is why even though it is the question.

 I get asked the most this is the main reason why I do not like to make calls push projects or share the exact moves decide to make my goal in my mission is to be a neutral trustworthy educational resource to help everyone assess their own unique financial situation assess their own risk tolerance assess the most comfortable relationship you can forge with crypto that jives well with your own personality and ultimately help you build your knowledge and develop the ability to navigate the space so you feel comfortable building a portfolio conducive to where you're currently at in life where you want to be and go in life and where you can learn from failures and losses and where you can take full responsibility for your wins and your gains even though it hurts it's infuriating and it sucks losses like some of us suffered in the tara luna collapse are one of the most profound and effective ways we make significant progress on our journeys as crypto investors.

 it's also where we learn the most lessons that allow us to achieve success and experience wins more efficiently and on a shorter timeline when we make the conscious decision to accept the loss and know that is a  powerful form of progress that will help us grow and make us stronger cool now let's jump into the news for the week crypto contagion what tara's Lehman brothers moment means for the market cryptocurrency's recent downturn could hurt retail investor sentiment and further the ongoing partly fed induced risk asset sell-off Dimartino booth told fortune the overarching and justified concern is that this first major confidence crisis sends a shiver through the smaller investor sentiment as margin calls of any ill tend to do dean Martino booth said retail investors have traditionally played the role of the canary in market sell-offs because crypto is where.

 so  many smaller investors have placed their  bets the losses sustained could become a  driver of a broader risk-off move in the  stock market so while the crypto  meltdown will undoubtedly have a cooling  effect on investor sentiment  barring an outright collapse in the  total ecosystem contagion effects should  remain limited and the similarities  between the terra USD acronym ust and  the largest stablecoin by market cap  tethers acronym usdt caused some  confusion and more panic briefly tether  loses dollar peg as crypto anxiety hits  number one stable coin  implosion of terra USD stable coin  ripples across the market tether says it  hasn't had any problems meeting  redemptions so tether slightly lost its  peg and dipped to about 94 cents from  the one-dollar briefly the lowest it's  ever dropped since December 2020 making  headline news world's biggest stable  coin regains dollar peg after three  billion dollars in withdrawals

 we had pretty much three billion dollars in redemptions and they were liquidated pretty quickly through our banking channels Andrino said in an hour-long Twitter space live audio conversation Thursday redemption requests range from a minimum of one hundred thousand dollars to as much as six hundred million dollars he added and this is quite an impressive feat in my opinion especially considering the skepticism that has long plagued tether's past all in all tethers multi-year existence tethers bout with the new york attorney general its deliberate actions to reduce the amount of commercial paper they hold and increase the amount of actual us dollars on its balance sheet are all things that occurred.

 over a long time frame while the terra stable coin grew way too fast on an experimental foundation that ultimately failed what does this mean for us as investors in the crypto space well this tweet sums it up bull market participants evil regulations are killing defy and robbing people of their financial freedom bear market participants  I'm just angry that regulators didn't do anything so yes a delicate balance between decentralized finance and regulations needs to be struck because although everything is recorded transparently on the blockchain since traditional finance isn't exactly seamlessly connected in a way.

 that would reveal whether or not for example the amount of tether in circulation equals dollar for dollar what's in tether's bank account also a lot of algorithmic stablecoins require investors' trust and faith in the protocol to operate efficiently and when people get scared and lose trust these algorithms fail so regardless of which side of the fence you're on when it comes to crypto regulations once enough regulatory clarity is realized more institutional money that will help drive global adoption will flood the scene and hopefully will involve more protections and fail-safes.

 in place to curb or prevent another terra luna-like disaster either way stay mindful of the fact that some regulations will require ample assets to back cryptocurrencies while other regulations will just require warnings and disclosures to investors that there aren't ample assets backing their cryptocurrencies this week coinbase dropped an earnings report today and with it came new language in their 10q about the legal claims retail users have in the event of a bankruptcy event reacting to new regulations from the sec coinbase had to add language that communicated that retail users of their platform could have their assets held on the exchange rendered as property of the bankruptcy estate in the event of bankruptcy.

 does this mean coinbase and every other cryptocurrency exchange out there are more or less safe than they have always been no nothing has changed except for a regulation requiring them to be more upfront about the risks associated with keeping your crypto on exchanges so if you're interested in securing your crypto investments off of exchanges ledger a  trusted and well-known cryptocurrency hardware wallet provider recently debuted their new improved and affordable user-friendly ledger nano s  plus device make sure you scroll down to the description area below to access the correct and official ledger site to check out the ledger nano s plus and ledger's other crypto security products 

 bull markets when price volatility goes crazy happened this week coinbase experienced a major outage as crypto prices plummet here's the deal coinbase is the same as all the other exchanges in that they don't have ample underlying assets to cover all of the cryptos in the event of a mass run and they always experience downtime during mass activity so in addition to investing in a cold storage hardware wallet another thing I always recommend is opening up investment accounts with multiple crypto exchanges that way you have multiple options to trade and make moves when times are crazy if some exchanges experience outages versus others staying online so scroll down to the description area below to check out my list of recommended cryptocurrency exchanges so you can be ready during this current bear market for any craziness as well as the next bull market nice.

  so this week the cpi or consumer price index report came out and revealed an  8.3 percent increase in inflation in the year through April which is a sign of slowing inflation for the first time in several months each month we will continue to face the uncertainty of cpi reports and from meetings but some certainty and predictability did come to fruition this week we can count on from a monetary policy perspective federal reserve chair Jerome Powell confirmed by the Senate for a second term sweet so whether you like him or not our boy jay Powell will be at the helm for the foreseeable future which creates some certainty in the market even if he continues to fan the fires of uncertainty Thursday Powell says he can't guarantee a soft landing as the fed looks to control inflation so a soft landing is really just getting back to two percent inflation while keeping the labor market strong and it's quite challenging to accomplish that right now for a couple of reasons.

 the central bank chief said in an interview with marketplace he noted that with a tight labor market pushing up wages and avoiding a recession that often follows aggressive policy tightening will be a challenge so the bear market will march on but for how long let's explore some predictions that were made just this week how long will the crypto bear market last Raul paul's macro analysis macro investor ralph is convinced that the current crypto bear market will end only once the fed eases its hawkish monetary policy by halting interest rate hikes that could happen in the next couple of months according to pal's predictions the fed are unlikely to raise rates as far and as fast as people expect my guess is they probably stop raising rates.

 sometime in the summer and that will be it he said in an exclusive interview with Cointelegraph crypto could see liquidation spike at some point if we see one inequity and then eventually that will be the final capitulation of the market he said at that point according to paul the fed will ease its monetary policy allowing some liquidity to flow into financial markets thus sparking the next crypto rally very interesting and another prediction made this week agreesCIObitwise asset management CIO matt hogan warns volatility in the crypto market will stick around for the next few months speaking on Varney and co he warned that volatility will stick around for the next three to six months.

 but  noted that he believes the long-term  outlook for bitcoin is very strong  amazing so if you are new to the channel  make sure to check out the bear market  video series I've rolled out to help us  all navigate this bear market and from  the ash of our current portfolios emerge  like a phoenix in the next bull market  on top and while we all dollar cost  average into discounted crypto positions  and take advantage of these unique  opportunities bear markets afford us  like to build our knowledge our network  income streams and portfolios make sure  you also take time to secure your  investments I've touched on this  extremely scary and terrible scam in  previous article that continues to bleed  victims dry at an alarming rate and this  week more news stories about it are  making headlines sims swap scam man  losing life savings sparks FBI  investigation a man in Florida lost more  than 700 thousand dollars after being  targeted by a sim swap scam the FBI has  recently warned of such schemes .

which involves criminals impersonating a victim and tricking the mobile carrier into switching the victim's mobile number to a sim card in the criminal's possession the bureau states my phone said no service sim card and I didn't even know what a sim card was the man dan Clark told the station will report that once the criminal had gotten a hold of Clark's phone number they were able to steal funds from his account I lost everything in a matter of a few hours Clark said yikes and he wasn't the only one also this week on long island  Jacqueline Berman didn't know anything was wrong until she tried to make a call saying she saw she was connected to wifi but didn't have service in new jersey Louis Martinez never even had that chance as his phone just suddenly went dead within minutes both of their bank accounts were cleaned out Berman said.

  she lost twenty-six thousand dollars while Martinez said he was out thirty thousand dollars cases are definitely increasing said paul Roberts assistant special agent in charge of the complex financial crimes unit for the FBI in new york these are a lot of organized crime groups they're not a single actor it's a  group of people working together to exploit this the scam involving the control of the sim card we all have in our phones is shockingly simple crazy so while we are all taking the time to learn about investing in this new exciting asset class we also need to take time to seriously consider increasing the security of our investments.

 there is only one way we can all 100 guarantee protection from a sim swap and it's through cell phone security services provided by ifani why ifani well like I said at the time they literally have no direct competitors and in addition to guaranteed protection against some swaps they also guarantee protection against fake towers eavesdropping location tracking spam calls spam text and malware and uses military-grade verification to protect your cell services which involve 11-step  integrity and authentication check they d-link your private and personal information from your phone and also encrypt your data they offer 24 7  365-day a year support their company is based in the united states.

 and if peace of mind knowing you will never become a  victim of a sim swap isn't amazing enough if by some crazy chance you do become a victim of a sip swap your secure mobile service with ifani comes with 5 million dollars worth of insurance coverage to protect you from any financial losses you experience from a sim hack all phone numbers that use safari's secure mobile services are unlisted which means you will not receive any robocalls from robot dialers and you will not receive spam SMS text messages from robot spammers.

   some bullish news stories about the continued growth in the crypto space despite the bear market climate and recent mass liquidations el Salvador buys the bitcoin dip adding 500 coins to its balance sheet so people companies and entire countries are still buying dip brazil's largest brokerage XP set to launch crypto trading feature built on  Nasdaq's trading technology the platform will allow users to buy bitcoin and ether so traditional finance is still adapting and developing support for crypto sixth man ventures raises 145  million dollars for a crypto fund it's the second fund for the venture capital firm led by the block founder mike dudas.

 so venture capital is still flooding into crypto Lloyd's license broker launches crypto-insurance product the daylight insurance offering for crypto firms begins with technology liability and cyber insurance so more crypto-focused financial products and services are entering the scene and rising global adoption positions crypto perfectly for use in retail as more and more people continue to invest in digital currencies experts believe the coming few years we'll see crypto making an even larger impact on the retail sector even though the cryptocurrency market seems to be going through a bit of law at the moment.

 there's no denying the fact that the industry has grown from strength to strength over the last few years especially from an adoption perspective to this point a recent study revealed that the number of adults in the united states using digital assets for everyday purchases will increase by 70  by the end of the year when compared to  2021 with the metric rising from 1.08  million to 3.6 million users CEO and founder of contacts says crypto is taking a front seat within the financial mainstream in many cases, not in a  zero-sum way versus the existing established market millions of unbanked people have access to cryptocurrency transactions from their mobile phones and due to this being an untapped market it is hard to observe and measure its growth from the economic lenses we have in place today awesome.