| | Over 100,000 crypto investors trust the Journal. |
|
HEALTH, WEALTH, AND HAPPINESS |
| |
Welcome, bitcoin brainiacs! Here's what's new. |
|
Grow your angel wings! Paid accredited members of this newsletter can join one exclusive pitch session for early-stage blockchain startups, thanks to our partnership with angel investing group Chain Reaction. Upgrade to paid! |
|
Ultimate Crypto Tax Guide (Bankless): If you've made any crypto investments or trades in 2021, here's an excellent guide covering the latest tax treatments for crypto, DeFi, NFTs, and more.
Investor takeaway: Any time you sell any crypto for a profit, it's taxable (capital gain). And selling for a loss could be a write-off (capital loss). Those are the basic principles, but lots of nuance around the new stuff. |
|
As we try to figure out our crypto taxes (you won't get much help from your bank), here's a look at the current market value of Ethereum vs. the top banks. |
|
Thanks to user TheKrisKray, who added, "And you're still not sure if this whole blockchain/crypto thing is here to stay?" |
|
Hi Everyone,
I hope everyone survived the weekend's sell-off. If you are reading this now, then I'm gonna assume you are doing alright.
It's important to remember that these kinds of pullbacks are part and parcel of a market that is increasingly hungry for excessive risk. Every once in a while, the riskiest parts of the market, in this case mostly meme coins and metaverse tokens, do need to be washed out.
In Wednesday's BMJ Newsletter, we explained how the Federal Reserve policy makers, who control all the U.S. dollars, are now pulling back stimulus from the market, and how this could potentially lead to disaster. Let's hope that we've already seen the worst of it.
Several economists have stated that the weak U.S. jobs report on Friday could provide some temporary relief for financial markets, and this matter has been documented by Forbes Senior Contributor Charles Bovaird in this article.
The issue however is a more long-term one. By now, Fed policy makers must realize that investors will not continue to lose money on government bonds for much longer, so they will need to find a way to close that gap.
If the rate of inflation is around 6% right now and bonds are paying around 1%, that means Fed officials will need to raise the interest rate to make those bonds more attractive, even if it means hurting stocks, and especially if it means thwarting DeFi. |
|
Although...
Fed officials haven't really had much of a chance to react to the jobs numbers yet.
The report only came out on Friday, and we haven't had any scheduled appearances from the members of the Federal Open Market Committee (FOMC) since then.
All we have at this time is speculation about how they might react, and judging by the way they've been positioning lately, I doubt that one jobs report is about to derail their plans to tighten up monetary policy.
The question I know most of our readers are probably asking though is "how much does this affect crypto prices?"
Indeed, the more I think about it, the more this apparent tight correlation between crypto and stocks really bugs me. After all, aren't we building a new economy that is disconnected from the Fed?
So what if the central bank is reducing stimulus? Don't we have the power to print our own money?
At some point in the future, the crypto economy might begin to operate independently of whatever the Fed is doing, but for now, the data shows that these two markets are still highly correlated.
Have a great week ahead! |
|
Mati Greenspan Analysis, Advisory, Money Management |
|
Sounds like a great reason to accumulate bitcoin! |
|
Now imagine the market's down, and you can buy it on sale. |
|
Bitcoin Market Journal is a daily newsletter focusing on blockchain and crypto investments. It is written and edited by Evamarie Augustine, Charles Bovaird, Mati Greenspan, and John Hargrave.
Paid subscribers get full access to our top crypto picks; both free and paid subscribers get content to build them into better investors.
|
|
|
|
|
|
|
