Crypto Market Cap loses 50% in 4 1/2 months | 15 May
BEST, a better alternative crypto investment risk
15 May 2022: The broader market hit a fresh 1.1T low on Thursday with BEST following a market that felt out of control with even some panic selling in small cap tokens. The Crypto Market cap bottom print was 60% below the start of the year. The Terra UST stablecoin proved extremely high risk speculation as it lost its final breath with hedgetoken LUNA losing all but 100% of its value. Havoc for some investors having been comfortable with a level of over $80 only a week earlier.
Our core crypto position is BEST with a few very small speculative investments all losing substantially in this weeks flurry of activity before some return to calm.
Bitpanda remains the exchange of choice for the simple reason that it offers a trusted centralized and regulated setup with strong forward looking developments. The choice of crypto and equity investment has grown to a professional level for small and medium size private investors. Key to us however has always been the facility to buy, swap and own physically backed precious metals on this same exchange. This is of paramount importance at times of serious unrest. And that time is now.
Bitpanda flexible staking has gone live this week whilst we await the higher very attractive weekly (instead of monthly) rewards expansion under BEST 2.0 to kick off in the very near future. It should have arrived already and next logical date would be week 27, but we'll see.
Below we add a BEST token Weekly and Monthly excel chart showing a fairly low risk down trend in Monthly and Weekly with the latter building very potential bullish divergence. Another attack on recent lows is still on the cards but shouldn't disturb the longer term outlook which remains a successfull retest and penetration of last year's highs. This may very well, in our view, coincide with further weakness in the major crypto currencies.
Coming week could show some strength as the broader market may first test recent chart breakpoints some 12% above current levels.
9 May 2022: BEST has done reasonably well the past few weeks and more in line with our outlook. Today's action however was to be expected as the market broadly tanked with little exception. We still hold that Bitpanda's BEST is one of the very few more interesting alternatives to crypto currencies and altcoins as the full potential of the BEST 2.0 reward mechanism unfolds whilst Bitpanda also rolls out their staking concept over the next few weeks and months. We stay with a full portion and weather the storm that could potentially drive a few tokens into deep troubled waters.
As with most crypto's, the risk trend is down from a relatively high % risk position. BEST, like most currencies and native tokens, is only a Hodl for early investors.
BEST/EUR Risk Weight Position Monthly, Weekly and Daily interval data
(Previous week in brackets)
|Bitpanda - BEST/EUR||Monthly||Weekly||Daily|
|Trend||↓ (↓)||↓ (↓)||↑ (↓)|
|16 (17)||42 (44)||23 (7)|
|Crypto Portfolio allocation
at current value
BEST/EUR Monthly close Risk weight to Price
BEST/EUR Weekly close Risk weight to Price
Bitcoin risk % is declining, but can still drive a massive price decline before turning back up longer term
09 May 2022 Real Bitcoin maximalist followers are in serious potential trouble. In this still young and developing space, it only takes one late adoption whale to get cold feet and this market may easily and quickly drop towards $10k. This kitchen is very hot and not for the faint hearted. Of course the well known bulls who are labelled BTC maximalists by alternative media are not really maximalists. Early adopters have been smart and/or lucky. They can't loose. Today saw a new Low for Bitcoin since the recent $32,933 low was established in January.
Since that low BTC has rallied into resistance at $48k and has now taken another 30% dive. This is not a mature market and anything [bad] can happen. Let's not forget that Bitcoin may be digital gold, which we don't believe, but those calling this crypto currency an inflation hedge driving it to $1 million is too simplistic.
Technically we are running into lower risk weight but the trend is still down and this could last for quite some time until the market decides the new bottom.
We still rather have our inflation hedge in precious metals instead and not aim for another 10x based on pure speculation and greed. Bitpanda's BEST therefore remains an easier to swallow investment for longer term investors if broader markets turn sour. BEST offers a healthy monthly return which is currently in line with inflation.
10 April 2022 We still favor BEST over Bitcoin looking at our basic technical analysis tools. Short term a little oversold, but never finished the usual longer term downside objectives. That broader risk is still imminent although the market may decide otherwise of course. Rumoured El Salvador like formal participation by other countries especially Russia is less likely, in our view, to materialize in a positive sense and will likely meet with heavy resistance from the established monetary order. Somehow we still think BTC, which has already realized a massive fiat money counterinflation performance, would still be in that same position at $17,500, even if meeting a little 2017 breakaway gap way down at $2,800. As fundamentals against or in favor of BTC are impossible to weigh, we simply cannot dismiss the use of technicals that do provide some measure of risk weight at least.