Survive The Great Crypto Bloodbath
495: What's Coming Next?
Morning,
Rough few days for markets and New York City (RIP, we will drop a schizo political rant and Risk On episode before end of week).
Absolutely insane stuff happening in this country.
On the markets side we’ve endured another rapid sell off in risk assets.
Crypto has begun one of its death spirals, equities were clobbered yesterday, and the majority of assets are selling off this week.
There is panic and blood in the streets.
Over $700 billion was wiped out from the US stock market yesterday along with nearly $1.5B in crypto longs.
Sentiment is horrific.
Bitcoin plunged below $100,000 for the first time since June.
Some of our hyped tech stocks took blows as well, with PLTR 0.00%↑ selling off after we found out that Big Short Size Lord Michael Burry had taken out some substantial short positions on the lofty defense/software company.
I’m going to be as direct as possible today. There is an opportunity to make money present.
People are DMing me asking if it is a good time to buy, if the bull market is over, and if I think any of these alts or meme coins can ever recover.
Seems folks are losing sight of the long term plan, so I am happy to tell you once again to not be a softo paper handed beta male.
Do not let down your children and bloodlines.
Time to lock in.
Real wealth takes serious conviction. Do you want to be known as the goon who panicked and sold everything at the first sign of volatility on the eve of a new dawn of financial technology and market pumpage or do you want to be the guy who stayed resolute, kept to the plan, and realized the amount of emotional manipulation present in these markets?
Today is all about crypto, though we are going to discuss equity trends as well and how they pertain or don’t pertain to crypto price action we’ve seen and will see.
This will be one of the single most important posts I likely ever put out on this topic (and there have been a lot).
There’s a reason we are consistently one of the top ranked paid crypto substacks. You get potentially life changing information (not an exaggeration) for mere dollars.
Over the years OGs have made very good money with Arb Letter for two reasons:
First — I never sell false hope and I know what I don’t know. I will tell it to you like it is. If I really think it is over, I will tell you. If I have never been more bullish, I will tell you. If I simply have no clue, I will make that clear.
Second — The strategies/ pointers hundreds, if not thousands, of subs and readers have used to profit, ARE SIMPLE. It’s not forex guru day trading or false promises. That being said you have to actually read them and implement them to benefit from them. Crazy I know. We will go over them again today.
The majority of people who enter crypto markets do so in times of extreme hype, drawn in by promises of riches instantly or quick bangers off memes.
That is likely not going to work moving forward and it has been the exception to the rule in the past.
You need to act before hype builds again and apply a structured approach to your exposure.
What is becoming apparent is that a more thoughtful and diligent approach is going to be necessary to separate yourself from the losers, panic sellers, and tourists who likely just got absolutely cleansed on this latest pullback.
We’re going to cover:
The state of the market
My thoughts on if this is a true bear market
My allocations (why I hold what I hold) when I think we bounce
Best practices for surviving and getting to the other side for better days
Here’s the good news.
All market participants have a new opportunity with this sell off to acquire things they’ve wanted and reexamine what they hold. Yes I am talking to those of you who have been serial lurkers on our crypto posts.
Newbies are getting another chance to get their exposure off zero and make sure they get a slice of the new financial future of the world.
Veterans are getting a valuable opportunity to think about their bullish thesis on certain assets as well as a chance to shift concentration into the names that are going to be winners in the future.
The market and environment has changed.
The basic strategies to make money in crypto have not and now we are getting another valuable chance to prepare for what’s to come.
This sell off won’t last forever so let’s get started.
Every sell off feels like the end of the world, until you zoom out and realize it was just another transfer of wealth from the emotional to the patient. Markets exist to test conviction. Those who can’t stomach the pain don’t deserve the payoff.