In this first episode of our Market Talk we talk about news of the week. No claim to completeness but we had fun.
We will show different formats on our Youtube Channel, one of them is the Market Talk. If you would like to take part in the talk, write to us and we will invite you to join us.
Longterm vs. short term
The crypto market is quite under pressure at the moment. We talk about that in the video above. A lot of people are contacting us about what to do with their cryptos. You have to learn to differentiate between short-term and long-term market movements. So some people go into cash positions to get back in later at cheaper prices. Short term, yes Bitcoin is losing right now. But in the long term, the outlook is still great.
Many people who are not professional in the market look too much at the charts. It is better to look at the background and long-term prospects. Of course, if you are trading, then short-term movements are important.
But the market in general, the crypto space is still strong. The industry is matured. That is a big difference to 2017, when the last crypto winter started. Also, you have to remember that many established companies are now working on integrating blockchain and crypto into their model. These companies are not planning for the short term, but for the long term. And there are many growing and emerging, which will give the crypto industry a sustainable boost.
Terra Luna Crash
This was possibly a coordinated attack. Of course, we also noticed that at the Defichain. A lot of trust was lost in the short term. The prices of altcoins in particular have fallen sharply. The DFI price has also fallen to around EUR 2 and is hovering around this level.
DFI has made strong gains against BTC in recent months. DFI is giving up some of that at the moment. And especially compared to other defi projects, Defichain is very very stable. We love Defichain for that.
At the moment we see falling APRs in liquidity mining. What is the reason for this? Because of course people are pulling out capital right now. It’s also built into the chain logic that when prices go down, APRs go down. But that gives us hope that APRs will go up again.
But Defichain needs use cases. That is important. We also need traders who buy and sell dTokens and dStocks. That feeds the poolswap fees and also the APRs.
New DFI exchange listing
Good news: DFI / Defichain is now listed for trading on Bybit! Great news for us and the community.
Click here to go directly to Bybit to buy and sell DFI.
Every new Exchange is an enrichment for the ecosystem. We ourselves use many different exchanges.
But most people use only a few Exchanges. That’s why it’s important for us to be on different Exchanges, because we always reach new users.
JPMorgan — Bitcoin undervalue
Imagine that, JPMorgan says Bitcoin is undervalued at the moment. It was JPMorgan that warned investors about Bitcoin a few years before. This is how banks are changing and their position on crypto. Especially if there is money to be made from it.
We also need the big banks and big capital to be actively involved in crypto to develop and stabilise crypto.
JPMorgan says the market has just overreacted and the market will move the other way again.
Startups under pressure now?
Because of the current market crash, there are warnings that start-ups will have problems with money.
But we see this ambivalently. There is a lot of money in the global system. As an investor, you can buy crypto, real estate or shares. Or in start-ups. Maybe valuations will suffer a bit. But many investors, especially in the crypto space, understand that the current situation offers good entry prices.
You also have to see that many start-ups have simply hired too many people and now have to watch the costs. It is certainly not a long-term problem, but simply a short-term one in which the companies have to react accordingly.
Fortunately, we at dStocks.io have a very lean structure and will continue to do so.