Had a nice peaceful Sunday with my family today. In the morning we went for a nice walk near our house where I took the image that you see above.
The weather is nice and probably the coldest that it gets in Seattle area. We actually saw frozen ponds on our walk. Usually Seattle stays above freezing temperatures even in winter.
Today was a significant crash in Bitcoin that took down the altcoins with it. During the the crash bitcoin touched eighty six thousand. As I am typing this it has somewhat recovered to almost eighty eight thousand.
I think this is because everyone is thinking that the four year cycle is over and the bitcoin made a cycle top last year. I don't think we have seen the top of this cycle just yet. I believe that this is an extended cycle and we will see the top sometime this year.
Right now the news is all negative for bitcoin: the events in Minneapolis and related protests, recent negative news on Greenland, now Federal Reserve is expected not to cut rates at their next meeting this week.
So this creates an atmosphere where investors are going risk off and all piling into "safe" assets such as silver and gold. But are these assets really safe here? I think Bitcoin and altcoins are actually safer here and we can see a rotation back into risk on assets.
I think the dollar is a safer asset than silver and gold are here. And we know that it looses about 4% a year in purchasing power in America and can be loosing even more against other world currencies.
But safe assets such as gold and especially silver can easily lose half of their value in a quick correction. Bitcoin and altcoins are really beaten down here and I am planning to buy some from my cash holdings this coming week.
I think dollar cost averaging here over the next few months is a good idea and I am planning to do just that. But I will be going into Bitcoin and altcoins that have ETF presence.
But that is a subject of a completely different post that I am planning to write this week. I actually think that only three crypto currencies should be bought here and maybe just a sprinkling of other altcoins if you have an appetite for taking big risks.
I actually like SPS here despite the recent run up due to the mini set that is coming out in a few weeks. The Splinterlands token is still really undervalued compared to other gaming tokens.
Axle Infinity has been showing signs of life recently and we can see a repeat of the big run up when Splinterlands first released SPS. Naturally there are a lot more tokens now, but still if gaming narrative becomes hot again we can see expansion of the SPS market cap in a very drastic fashion.
Many crypto games are shutting down, but Splinterlands keeps delivering updates every single week and I like their recent focus on saving on opening costs.
It is important to keep the costs down so that we can survive until the gaming narrative becomes hot again...
Now is a great time to accumulate more crypto and prepare for the inevitable shift in investor sentiment towards crypto.
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