Discussion
With the recent disastrous decline in prices of Hive . We can see that people with "diamond hands" leaving the market but what's interesting is this selloff is not due to any fundamental change in Bitcoin or Hive.
For eg :- Today , hive's price declined 15% to $0.48 again but there's difference in me or the blockchain. The witness nodes are working on blocks just like yesterday . People are upvoting, posting , having fun. All of that. As a matter of fact some layer 2 communities like LeoFinance are seeing improved engagement growth.
So why ..? Why so red ?
To answer this look at today's stock market.
It is the mighty NASDAQ 100 index consisting of 100 top tech companies my market share trading in USA dropping casually in 2-3 hours of trading by more than 3.50% or $475 .
That is pretty significant decline for an index of big companies. Imagine shitty ones. The thing which amazes me is that whole market is just outright panicking and selling everything to hold cash. CASH IS KING as they say on wall street. If you looked at the price action of NASDAQ for the pas month you'll see $1000 swings back and forth meaning an index is swinging to 3% and -3% in single day. Shitcoins trade with better price action tbh.
But wait.
Look this big thing ..
You could say this is the benchmark index which measures the whole stock market S&P500 which declined more than 3.4% while writing this post. I expect more red until and unless there is no stability around inflation fears.
Inflation, supply chain disruptions, war and finally federal reserve looking to tighten the economy will take us into a deeper nosedive where people with absolute courage will survive.
My position
Personally, I won't be putting in more money in any of the markets be it for investing or trading just because of no relief in sight. CASH is KING for me indeed. People who are blindly putting in money thinking they caught the dip only to see the price decline more 30% in 2 days are weird to me. Don't treat money as you would in a casino. Hold cash for a while if you need.
But .. but.. Inflation.
Yes I get it. Holding cash will only result in you loosing value to inflation but loosing 8% annually is better than YOLOing into buying dip and loosing 40% + inflation . I am telling you to hold cash forever just don't but falling knives everyday thinking one of these days could be a dip.
Peace out.
