Valueless Crypto Worth Hundreds Of Millions Of Dollars

2023 and even 2024 are going to be tough economic times with large amounts of cash proposed to be drained from the financial system by global central banks to rein in inflation. Recession is broadly predicted and it seems unlikely that crypto will go on a bull run with cold financial headwinds blowing in many people’s faces.

Large crypto firms are tottering on the brink of collapse and others that are apparently sound appear to be under investigation in the U.S. on all sorts of serious matters. That seems to provide a very strong argument for a continuation of the crypto winter, with plenty of scandal to come.

So a sudden rally would certainly be a surprise, while few would marvel at another leg down.

I expect a slow motion wreck in 2023, but right now bitcoin is doing a remarkable job remaining stable. However, the utterly valueless celsiusCEL
coin, the token of the bankrupt Celsius CeFi platform, still has a market cap $125 million and the calamitous TerraLUNA3
luna $175 million, which underlines a fact that the crypto-madhouse still has a long way to go to normalize and get back on track.

Yet the sentiment is so negative in crypto that it is enough to make a contrarian buy in. The chart is making a good case for this being the bottom too.

Here it is:

Why is this a good chart for bulls? It’s because all the volatility has gone and this means so has the uncertainty. This can often signal a bottom.

To me it signals an equilibrium but that equilibrium can be broken to the bullish or bearish tack. As a bear I await the break down because I expect plenty of default and distress and uproar to come and the contagion that brought FTX down and has flooded on to DCG and many others is far from over. We will not see the bottom until these have been brought to a conclusion and all the dominos have fallen. It going to take a lot of time for this storm to blow over.

Meanwhile crypto enthusiasts still look to the moon for help as if a crypto Santa must appear any minute and shower everyone with erupting prices. This lack of capitulation is yet another sign that worse is to come. The bottom of markets is when everyone has surrendered and discounted the market as dead. There is a drumbeat of that but not the clarion call of doom you normally get after a market capitulation.

Once the DCG, Genesis, Greyscale situation is resolved it will be time to consider buying in, but if there is yet more contagion underway it will remain a time to hold off.

If you think it’s the bottom, it isn’t, if you know it’s the bottom it is. There is a big difference.