Crypto will face bearish sentiments mainly due to inflation data. Rising Oil prices due to Ukraine, Russia war has brought up rising cost in manufacturing industries. However this is only temporary as Russian oil seeks out alternative routes, they are currently selling oil to India and likely China. These cheap oil will surface in the market. ( It will take time )
Interest rate hikes and asset selling programs by the feds will undo the bull market on investments that has kept us going for the past 2 years. Crypto has evolved so much in the last few years, from becoming a hedge to the stock market to a current correlation of 0.78. This shows that if US equities market drops by 1% crypto drops by 0.78% currently. I believe the correlation will remain as institutions, ai investors are responsible of this bull run.
The DAO however is advised to not hold ETH mains due to these bearish sentiments. We should look at growing our treasuries with small projects at the moment, be it minting or buying potential projects that has good risk/reward ratio. Certainly not blue-chips as they do not move as much.
A good strategy will be holding 30% of our assets in stables USDT,USDC,DAI. whilst yield farming those and deploying 70% of our assets into ETH and Solana projects. 30% will serve as liquidity when needed or to buy ETH in the regions of 2500-2700.
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