Storm Incoming

There are a number of catalysts which I believe will affect the crypto markets this week. Some of these include:

Ethereum is on shaky ground. If prices drop significantly, ICO owners will be forced to liquidate their ETH, creating a vicious cycle. Ethereum gets more fragile as prices shrink. I can see this dragging down the rest of the market as well when stops get triggered. All boats float at the same level. For the adventurous, shorting ETH may be on the table.

Bitcoin price target of $3,000 to $5,000 seems about right to me.

Historically, Bitcoin has gone through some major upheavals. The whales will ensure that the next run up is greater due to the magnitude of this drop. Retail is being separated from their coins. I posted this on Twitter previously about this fact.

Some Wall St. billionaires may buy the dip on BTC but there is also the probability of a chain death spiral to shake the ground lose. Visit http://www.ChainDeath.com/ for more specifics on how this could work.

Mt. Gox is still not done unwinding its coins to creditors. Unfortunately, this means banks will get the money and investors will likely lose out. Kind of sad. Banks will have different agendas for the funds then individual investors.

Tether is still uncertain. Interestingly, a recent Yahoo Finance piece covered it and they may have full reserves as audited by a former FBI Director Louis Freeh. You can read the full article here — https://finance.yahoo.com/video/exclusive-louis-freeh-tether-212207560.html I’m personally still not 100% confident everything is kosher with Tether.

The summer vacation may be another factor in this because when people return from vacation they may take profits and risk off of the table. They will be caught with their bathing suits on and no trading access.

Based on my social capital, it sounds like some banks are short on reserves right now. It will be interesting to see how this transpires. If this is true, institutions are not going to enter the crypto markets fully just yet.

I think legacy market participants are starting to wake up to the fact that crypto is not a fad and that for the first time, they may face competition and lose out on ‘monopoly over money status’. The funny thing is the Bitcoin train has been running since 2009. Being risk averse in this case is not your friend.

I got a comment from an attorney saying Bitcoin is for drug dealers. Lol. This is no longer true. I believe drug dealers prefer USD. He then said that he had a short position going currently. I am seeing a connection here.

That’s about it for now. To reiterate, I am very bearish at the moment and could see a huge drop in crypto markets coming. The storm is getting worse.

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