If you’ve ever doubted that investing can feel like riding a rollercoaster, the last few years have likely made you a believer. Long, drawn-out climbs give way to sudden — sometimes terrifying — drops. Rinse, and repeat. When one of those drops is between -10% and -19.9% from the recent high, markets are said to be in a correction.
Bitcoin slid to lows of $20,950 in the early hours of Tuesday morning — hours after the S&P 500 officially confirmed a bear market. Things went from bad to worse for the world’s biggest cryptocurrency during Asia trading hours, when sell-offs have been especially pronounced of late.
The brief dip to $21,000 also put MicroStrategy in danger of facing a margin call on a $205 million loan that was collateralized by Bitcoin. While CoinMarketCap’s data shows there’s little to cheer about — with the market cap of all cryptocurrencies now below $1 trillion — Bitcoin did rebound after reaching depths of $20,950.82.
As of 7am London time on Tuesday morning, it’s currently trading at $22,796.04 — a sign that some traders may still be determined to buy the dips despite heightened levels of volatility. All of this comes amid uncertainty about how the Federal Reserve plans to tackle runaway levels of inflation, with an increase of 75 basis points now seen as increasingly likely.
What is the Federal Open Market Committee (FOMC), and when do they meet? “Monetary policy” is constantly discussed in the news. The Federal Reserve (aka the Fed) is the central bank of the United States and controls the supply of U.S. dollars or money. A part of the Fed’s responsibility is to aid economic growth; adjust the money supply and interest rates; promote maximum employment and stable prices in pursuing economic goals.
- The bottom fell out of the crypto market recently.
- We think most altcoins are likely doomed but that the big dogs Bitcoin and Ether can prosper.
- We anticipate a rally now, followed by more weakness, followed by a true larger-degree move up in each of them.
- Looking for a helping hand in the market? Members of Growth Investor Pro get exclusive ideas and guidance to navigate any climate.
Correlation, Causation, and Quarterly Impact
However, that upward trend proved transitory.
After a period of faltering, roaring inflation and added macroeconomic pressure from geopolitical events sparked major selloffs in equities. While Bitcoin has long been billed as a non-correlated asset that can work as an inflation hedge, it has actually crashed just as inflation has picked up steam. In another ironic twist, the currency that was formulated as a new way to trust transactions and verify work has been hit hard by opaque “stable coins” and uncouth behavior by exchanges and lending platforms.
As all of these trends come to bear, Bitcoin has sold off sharply and left the remaining 38,000 Bitcoin on Tesla’s (TSLA) balance sheet underwater. Bitcoin trended near $22.7K amid a sustained selloff on Monday evening, implying about a $12K loss per coin held at Bloomberg’s price estimates. In total, that would suggest a loss of over $450M on the remaining investment. Given the majority of Bitcoin’s decline from its prior heights occurred since April 1, much of that loss is likely to be recognized in Tesla’s quarterly report scheduled for late July.
Of course, unlike other companies holding significant amounts of Bitcoin on their balance sheet like MicroStrategy, Bitcoin is a sort of sideshow for Tesla. As a growing auto manufacturer, vehicle deliveries and margins on those autos are clearly the important metrics to monitor.
However, this may too be challenged as the company’s key growth market in China comes under severe supply chain pressure. Per a leaked e-mail from Elon Musk, Q2 was a “very tough quarter” due to constraints in the country and a late-June production push is needed to spruce up the difficult quarter. In the end, the Bitcoin issue adds yet another headache to a quarterly report that is likely to be incredibly noisy with Elon Musk’s proposed purchase of Twitter, a stock split, China lockdowns, sexual harassment allegations against the CEO, autopilot issues, and more adding to an already challenging quarter for automakers.
In a growing effort to make digital assets more accessible, Mastercard (NYSE:MA) is bringing its payments network to non-fungible tokens and web3, according to a release Thursday. PayPal Holdings (NASDAQ:PYPL) stock rebounds into the green after the payment technology company announced that users can transfer cryptocurrencies between PayPal and other wallets and exchanges.
The U.S. Securities and Exchange Commission is investigating whether Binance Holdings broke any securities rules when it sold digital tokens in 2017 just as the cryptocurrency exchange was getting started, Bloomberg News reported, citing people familiar with the matter. At issue is whether Binance’s initial coin offering of Binance coin (BNB-USD) amounted to the sale of a security that should have been registered with the SEC, they said. The token has become the world’s fifth biggest cryptocurrency, according to CoinMarketCap.
The SEC uses the “Howey test” to determine if an asset has the characteristics of a security. Under that test, an “investment contract”, or security, exists when there’s an investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others, the SEC says. The Gap Inc. (NYSE:GPS) is furthering its commitment to NFT experimentation on Monday. The retailer revealed it is entering partnerships with former MLS soccer player and artist Demit Omphroy and “petaverse game” DOGAMÍ for NFTs. The new deals build upon experiments the retailer has made since the start of 2022, continuing despite flagging NFT sales overall.
Partnering with unique artists and creators is a cornerstone of our NFT program,” Chief Product Officer Chris Goble said. “We are thrilled to collaborate with Demit and to create this vibrant collection of NFTs and product that amplifies his voice and represents his distinct individual style. U.S. Rep. Elissa Slotkin (D-MI) introduced on Wednesday a bipartisan bill that would require members of Congress to disclose all cryptocurrency holdings and transactions for themselves, their spouses, and their dependent children. The simple truth of the matter is this. There’s a lot of pessimism out here in the market right now. In hindsight, the time to be pessimistic would have been last year. Right now, I believe that a lot of the carnage has now been done.
How many companies out there are not down 50% to 60%? In fact, there are huge swaths of the market that are already down substantially more than 60%. That doesn’t mean that everything pops back up tomorrow morning. What it does mean is that we have already embraced a lot of the pain of being an investor.
The Pendulum Swings
All around me, I see pessimism in the stock market.
Many investments have been hit so hard, that few investors have the imagination to believe what is possible. And while everyone knows that when you invest, stocks can go down as well as up, previously everyone appeared to have forgotten the first part, that stocks can go down.
Right now, people appear to have forgotten the second part, that stocks do tend to go up over time. While Amazon has stalled, and Facebook may never regain its heights, the biggest market today is the non-fungible token business.
Non fungible token or NFT, is a non-interchangeable unit of data stored on a blockchain, a digital ledger. It adds uniqueness, verifiability and credibility to any form of digital art, thereby safeguarding the creator’s work and stopping the rampant duplication that happened before. Once you convert a meme into an NFT, you can easily trade its ownership with other interested parties, and, in the process, increase your earnings.
VucoWorld NFT factory ambassadors are spearheading the development of NFTs commercial viability.
As a valued member of an elite group of early NFT investors, adopters, and creators from all over the world, VucoWorld operate at the forefront of this expanding ecosystem and are poised to become one of the largest NFT factories in the world. The VucoWorld team consists of over 300 employees and more then 500 shareholders who are all committed to lead the organization through positive change, the future is even more exciting than the present because of the overall patented technology the company owns for streaming TV and its ability to grow from a major Movie Studio they own in Dubai. You can visit the movie studios at https://vmcdubai.com/
John Lamb, C.E.O of VucoWorld said, “These are the most extraordinary of times for our NFT factory’s as we are offering the most extraordinary of opportunities. VucoWorld helps our new NFT factories with keen-sighted, creating, and grabbing VucoWorld proven strategy that is powerfully generating major profits in the NFT world.”
VucoWorld team executives are experienced creating factory partnerships who become NFT ambassador factories moving thousands of different NFT series being minted for sale in seconds instead of months.”
The team at VucoWorld have worked for decades globally building and marketing different products. VucoWorld companies are quickly partnering with entrepreneurs who are using the expertise and dedication from VucoWorld factory builders’ team who are creating these new factories. The new factories are all receiving huge cash flow from the NFTS being minted in house and the amount production that can be produced under the VucoWorld Banner.
The artists at VucoWorld are creating, refining, and transforming the Non fungible Token businesses every day. NFTs are going to become integrated into nearly all aspects of our lives, offering businesses opportunities to grow on the block chain using smart contracts, which procure and secure transactions from every being fraudulent.
More of VucoWorld
VucoWorld exists to successfully utilize the smart chain via our own minting machinery as we build verifiable metadata connected to Ethereum, Polygon. VucoWorld is now minting NFT’s using its own minting system connected to smart contracts connected over the block chain and uploaded to platforms like Opensea.
Using the VucoWorld system technology, our NFT drops of ten thousand can be uploaded in 45 seconds instead of 3 weeks to 30 days. For this reason, ambitious VucoWorld NFT factory ambassador brands have partnered with our company eager to expand and grow their business in creative ways.
Defining VucoWorld’s most relevant growth opportunity is simple. Combining strategy & design to deliver the best customer experience, VucoWorld develops exclusive NFT platform and marketplace with a complex technology accessible for consumers who don’t want to spend huge gas fees. With the Vuco system, they can do an entire NFT series uploading for less than $1.00, whereas everyone else minting NFT series and using other minting systems spends a minimum in $1000 excluding the process of building the art or producing or marketing the NFT.
OpenSea, the most popular non-fungible token (“NFT”) marketplace, is transitioning to its self-developed Seaport protocol from the Wyvern protocol in an effort to reduce gas costs, according to a blog post released on Tuesday. Seaport is open source and designed to be accessible for all builders, creators and collectors of NFTs. It’s “a game changer, it’s open source, inherently decentralized and a modern foundation that will help us (and any teams using it) build and release new features more quickly,” OpenSea said.
OpenSea created the first version of the protocol, which could lower gas fees by 35% for transactions, the blog read. Furthermore, based on last year’s data, the switch to Seaport could save users $460M in the next year, as well as exempt new users from paying an account initialization fee. Note that “gas” is the fee required to conduct a transaction on the ethereum (ETH-USD) blockchain. NFTs are part of the ether blockchain at a high level.
Linking Human Like Intelligence (HLI) and Vuco World
The next major boom for the metaverse and blockchain is Artificial Intelligence (AI) machine learning which today is being touted to be 4 times larger than the mobile economy. VucoWorld once again went farther than AI and is contract negotiations to use Human Like Intelligence (HLI), which will bring to industry, medicine, analysis of intelligence and robotics in the commercial marketplace.
HLI is a system based on a neural network learning system with a task-specific focus using human-like behavior and operation using all the desired senses as we know it. Differences in the methods, means and paradigms become real world transactions focused on meaning of concept and its implications as it mimics human psychology and thought processes.
HLI is subject matter expert-based training not ai fix coded implementation. HLI uses the training and tasking in the back story not with some software driven code or preprogramed intelligence trying to handle the unexpected that the spec writer did not anticipate, or the coder did not understand.
So how will HLI interacts in the human space in VucoWorld?
- Learns in English, Communicates in English
- Trainable in English by Subject Matter Experts
- English Discourse – Tells the story
- English Dialogue – Two-way discussion
- Connects the dots – Perception
- Conjectures on the unknown
- Non-scripted, non-programmed decisions
- Communicates the back-story for opinions.
- Cross-agent communication
- What to do, not how to do it
- Autonomous decision-making
- Learns from mistakes
- Grows in knowledge
- Can write a book of Its own knowledge of a topic
The general consensus is that bitcoin is a buy and VucoWorld new STO is worth buying in and being part of the company. The Fed waited too long to intervene when prices started rising in 2020 and that now they must act aggressively to reign in inflation and that is resulting in a hard landing for the U.S. economy. While the hope is still great that the Fed can pull of a miracle and produce a soft landing, that is not likely and Investors should prepare themselves for a bear market in stocks, a bull market in NFTs and the metaverse with HLI cornering the world of new intelligence.