EddieJayonCrypto
12 Dec 23
The crypto market dropped and there were a few factors. One was far more public than the others, but the others may have been more impactful. Here is what is on my mind today.1. There are a number of reason why Bitcoin has dropped like a hot rock. You had US Senator Elizabeth Warren introduce a bill...
The crypto market dropped and there were a few factors. One was far more public than the others, but the others may have been more impactful. Here is what is on my mind today.1. There are a number of reason why Bitcoin has dropped like a hot rock. You had US Senator Elizabeth Warren introduce a bill to crack down on crypto. That, by far had the most public impact. You had Attorney John Deaton, who represents 75K XRP holders come out swinging against Sen, Warren and SEC Chairman Gary Gensler accusing them of corruption and malfeasance. That said, I think additional impact came from Bitcoin miners shedding 1K BTC. That represent about 10% of overall miner reserves. Then you had the impact of over-leveraged derivatives Degens exacerbating the situation. You have a lot of people drawn to the degen culture because of the tremendous upside potential. What they don't realize is that there is an even larger risk they will lose and lost they did. 2. Goldman Sachs thinks interest rate cuts are in the cards…but only twice over the next 2 years. I think this is an interesting perspective that I do not agree with. I think the US economy is strong with inflation getting under control. However, I think we have a lot of layoffs come in the first and second quarter of next year that will definitely cause a cooling of the economy. If it gets too cool, we will see at least 2 rate drops in the second half of next year alone. Mind you, real estate and the car markets are already taking major hits. I think those hits will bubble over toward the beginning of next year. Rate cuts will help the Cryptoverse and help to add even more heat to what is promising to be a very hot crypto market. 3. Just when you thought Polygon (MATIC-USD) wasn't going to make any noise in December they announce a new unified portal for Web3 transactions. They are bringing better developer tools and bridging assets. When I was reading through everything, I came to a single conclusion. Polygon has passed their hype phase and is acutely focused on continuing to build on their place in the connective tissue of the Web3 infrastructure. That is a huge deal. Think about how Immutable X is leveraging their zkEVM technology along with other projects doing the same. 4. The controversy around Bitcoin (BTC-USD) Ordinals is going to be a big topic for a time to come. We are just learning how a bug related to Ordinals has been added to the US National vulnerability Database. The database is a central repository for cybersecurity threats. The threat says inscriptions can be used to spam the blockchain. You can easily see how this could be a major problem. The original complaint was raised by Bitcoin core developer Luke Dash, Jr. 🚨 Full Disclaimer: This video and its contents are for informational purposes only and do not constitute an offer to sell or trade, a solicitation to buy, or recommendation for any security, cryptocurrency, or related product, nor does it constitute an offer to provide investment advice or other related services by Eddie Jay on Crypto. Eddie Jay on Crypto may have a financial investment with the cryptocurrencies discussed in this video. In preparing this video, no individual financial or investment needs of the viewer have been taken into account nor is any financial or investment advice being offered. Any views expressed in this video were prepared based upon the information available at the time such views were written. Changed or additional information could cause such views to change.