There continues to be extra volatility in the crypto markets, and experts predict the ups and downs to continue as investors wrestle with continued surging inflation, geopolitical tensions, and changes in U.S. monetary policy.
Cryptocurrency’s wider adoption and its recent alignment with the stock market make it even more linked with macroeconomic factors. The Federal Reserve’s decision to raise interest rates sent the stock and crypto markets into a downward spiral that persisted throughout the weekend and Monday.
Bitcoin and ethereum are down over 20% over the last week. Bitcoin dropped below $30,000 Monday evening — its lowest level since July 2021. Ethereum has followed bitcoin’s lead, with its price trading near $2,200 Monday.
“Bitcoin is breaking below some key technical levels as the never-ending selloff on Wall Street continues. The institutional investor is paying close attention to bitcoin as many who got in last year are now losing money on their investment,” Edward Moya, senior market analyst at foreign-exchange brokerage Oanda, wrote in a market analysis. “If the USD 30,000 level breaks, that could trigger a flash crash environment if several whales unload. ”
Either way, experts advise not to make financial decisions based on news-related panic or hype. Here’s what investors should make of the latest crypto news:
It’s been a shaky start to the week for Bitcoin and other cryptocurrencies, largely driven by ongoing macroeconomic uncertainty. Bitcoin, the largest crypto, dipped below $36,000 Saturday and continued to nosedive throughout the weekend, hitting its lowest point in over a year Monday. And one expert warns bitcoin could drop even further, below $30,000 for the first time since July 2021. Bitcoin could “potentially get a mini-bounce at $35,000, but unless we break the trend line at approximately $37,000, I’m calling for $29,000 in the coming weeks or week,” says crypto expert Wendy O in a recent TikTok video. Ethereum has been following a similar pattern, rapidly declining to $2,300 Monday.
TerraUSD (UST), the third-biggest stablecoin, has dropped below $1 level twice in the last three days, falling to $0.985 on Saturday and as low as $0.937 on Monday, according to CoinMarketCap data. This is problematic for the crypto markets as stablecoins are intended to bring stability and should hold as close to $1 as possible. It has forced Terraform Labs — the project behind UST, crypto LUNA, and the Luna Foundation Guard — to dip into its $3.5 billion reserves of bitcoin to support the stablecoin. Terraform Labs emptied its treasury wallet of all of its bitcoin Monday, equivalent to $1.5 billion, to lend out to trading firms, in an effort to help hold UST’s price peg. Terraform Labs founder Do Kwon tweeted Monday that it’s “deploying more capital,” but didn’t provide more details.
Coinbase announced in April that it was launching an NFT marketplace in beta mode, allowing only a small set of users to test out the platform. Now, Coinbase is opening its beta NFT marketplace to all users, allowing anyone to buy, sell, or trade non-fungible tokens, just two weeks after its initial launch. A spokesperson for Coinbase said additional marketplace features are “still to come,” and Coinbase will “disclose details at a later date.
Bitcoin is the largest cryptocurrency by market cap, and a good indicator of the crypto market in general, since other coins like Ethereum (and smaller altcoins) tend to follow its trends. Even though Bitcoin recently set another new all-time high, it was a pretty normal uptick for the crypto, which is notorious for its volatility. That’s not to say investors should take swings in either direction lightly, and this is also why investing experts recommend not making any major investment changes based on these normal fluctuations.
Cryptocurrency is still very new, and everything from innovation to regulation can have an outsize impact for investors. Here’s how you can invest smartly, regardless of what’s making news or Bitcoin’s price swings.
What You Should Know About Crypto Investing
How Investors Should Deal With Volatility
Cryptocurrency volatility is nothing new, and you should be comfortable with this if you decide to invest.
Volatility can be attributed to an “immature market,” says Ollie Leech, learn editor at Coindesk, a cryptocurrency news outlet. Anything from a celebrity tweet to new federal regulation can send prices spiraling.
“If Elon Musk puts hashtag Bitcoin in his Twitter bio, it sends Bitcoin up 10%,” says Leech.
This unpredictability is part of the reason why investing experts warn against investing huge amounts of your portfolio into a risky asset like crypto. Many recommend keeping your crypto holdings to less than 5% of your total portfolio.
For new investors, day-to-day swings can seem frightening. But if you’ve invested with a buy-and-hold strategy, dips are nothing to panic about, says Humphrey Yang the personal finance expert behind Humphrey Talks. Yang recommends a simple solution: don’t look at your investment.
“Don’t check on it. That’s the best thing you can do. If you let your emotions get too much into it then you might sell at the wrong time, make the wrong decision,” says Yang.
This is the traditional “set it and forget it” advice that many traditional long-term investors follow. If you can’t get on board, and the extreme dips continue to cause you worry, then you might have too much riding on your cryptocurrency investments.
“The most important thing any investor can do, whether they are investing in Bitcoin or stocks, is not just to have a plan in place, but to also have a plan they can stick with,” says Douglas Boneparth, a CFP and the president of Bone Fide Wealth. “While buying the dip might be attractive, especially with an asset that you really like, it might not always be the best idea at the moment.”
Gate.io Startup is a next-gen platform for initial cryptocurrency exchange offering (IEO) campaigns developed by the Gate.io crypto ecosystem. To ensure an unparalleled experience for all participants of fundraising in terms of security and profitability, it implemented a splendid number of novel features.
Introducing flexible and high-yield IEO launchpad: What is Gate.io Startup?
As an amazing combination of security, high performance, feature-rich and inspiring ROI, Gate.io Startup allows every crypto enthusiast to invest in the "next big thing" at the very early stage of its development and massive adoption.
What makes it special amid the IEO launchpad boom?
Unmatched liquidity ecosystem: every token supported can access Gate.io with its 1,300 tokens;
Highest average ROI, generous airdrop for all accounts registered;
Seamless integration into Gate.io’s ecosystem with world-leading CEX, NFT Magic Box, GateChain, quantitative trading module and so on;
Detailed research into every project listed;
What is IEO?
Initial cryptocurrency exchange offering (IEO) is a method of fundraising for cryptocurrency projects. IEOs are organized on centralized platforms and are fully controlled by its teams and community. Through IEOs, projects raise funds from investors to achieve these goals and distribute tokens between them.
Technically, IEO works not unlike other types of token sales: initial coin offering (ICO), initial gaming offering (IGO), initial decentralized exchange offering (IDO), initial staking pool offering (ISPO) and so on.
With the IEO model, people can buy tokens of new projects through this or that centralized crypto platform.
Why is IEO better than ICO?
For the crypto segment, the year of 2017 will be remembered for its "ICO boom." However, this mainstream model of fundraising - when a product collects money through its own website and crypto wallet - had too many dangerous flaws.
First, it was about the security of the fundraising. With ICO, its team is the only actor responsible for the visibility and transparency of the funding procedure. As such, it is too easy for scammers to run with investors' money.
With IEOs, analysis of the team that raises the funds is performed by the centralized platform behind the IEO. Its security department bears responsibility for due diligence checks so, typically, only legit teams raise money through IEOs.
Type of tokensale
Short name
Description
Pros
Cons
Initial exchange offering
IEO
Investors send money to platform, it transfers the funds to projects
Secure and resource-efficient method
Lack of reliable platforms
Initial decentralized exchange offering
IDO
Investors send money to a smart contract
100% noncustodial method
High risk of rug pulls
Initial gaming offering
IGO
GameFi-specific form of IDO
100% noncustodial method
High risk of rug pulls
Initial coin offering
ICO
Investors send money directly to the team’s wallet
The oldest and most popular retail fundraising method
High risk of exit scams
Initial staking pool offering
ISPO
Investors lock the liquidity in favor of the staking pool associated with the project
100% noncustodial method
Available only on Cardano (ADA)
Table 1. Crypto fundraising for retail investors: methods and opportunities
Gate.io Startup: New-gen platform by top-tier exchange
Gate.io Startup is a unique fundraising platform with a feature-rich toolkit and cutting-edge level of privacy for all actors.
It is thoroughly curated by Gate Ventures, the VC arm of Tier-1 crypto exchange Gate.io, which is among the largest trading platforms globally by traffic and trading volume.
Gate.io Startup for products: Unmatched decentralization, secure fundraising
Despite huge interest in crypto and early-stage investments in Web3 products in particular, a secure and resource-efficient token sale organization remains inaccessible for the majority of nascent products. As such, Gate.io Startup is designed to offset the gap between the mentioned products and retail investors.
As Gate.io Startup implemented strict due diligence policies, all investors on the platform are required to pass advanced "know your customer" (KYC) and "anti-money-laundering" (AML) checks. Retail investors from VIP1 tier who passed KYC checks can purchase 1,000 shares maximum. Thanks to these procedures, startups are protected from "toxic" investments and from too whale-dominated distribution of their tokens.
This combination of control and concentration prevention measures allow early-stage products to protect themselves from hyper-concentration and security issues.
Gate.io Startup for investors: Where user-friendly interface meets credibility
At the same time, participating in IEO procedures with Gate.io Startup seems increasingly attractive for retail investors with various levels of expertise as well.
Prior to the listing of projects on Gate.io Startup, the leading experts of Gate Ventures evaluate the project’s legitimacy, credibility and the opportunities of its team. The full scope of goals, milestone and previous career tracks of team members and director are analyzed under a microscope. Gate.io Startup team only lists products with achievable goals, viable tokenomic models and splendid founders’ reputations. These procedures guarantee an unmatched level of protection from exit scams and all other versions of investors fraud.
Then, with the aforementioned limit of 1,000 shares for eligible participants, investors should not worry anymore about the prospects of massive whale-driven dumps. This creates a totally new benchmark for decentralization and inclusive participation for all types of investors, both OGs and newbies to the crypto world.
Investing in IEOs with Gate.io Startup is among the most profitable options of the entire segment. As of January 2022, its monthly-average profit for one listing (IEO price / ATH price) spiked to 80x. Data shows that Gate.io Startup currently has an average ROI of 125.09% and an ATH ROI of 2,181.86% as of Mar. 10, 2022.
Gate.io Startup’s approach to token listing and post-listing support is a holistic one. High-quality and promising projects of any track can participate in Gate.io Startup as long as they pass the platform's review.
Gate.io Startup: Element of Gate.io ecosystem of cutting-edge products for Web3 era
Since day one, Gate.io Startup has been integrated into a multi-product ecosystem of Gate.io’s products. It includes Gate.io, a leading centralized crypto trading ecosystem, GateChain, a native EVM-compatible smart contracts platform, and Gate Ventures incubator and GT, the core native utility asset of this ecosystem.
Launched in early Q2, 2013, in China, Gate.io opened its services for a global crypto audience in 2017. It has amassed more than 10 million users from 190 countries as its daily trading volume surpasses $10 billion (February 2022). The protocol supports more than 1,300 cryptocurrencies; USDT-based pairs with Bitcoin (BTC), Ethereum (ETH), Terra (LUNA), Shiba Inu (SHIB) and XRP are the most popular on the exchange.
GateChain is a DeFi-focused smart contracts platform based on a unique type of consensus. It leverages Vault Account, a one-of-a-kind element needed for handling abnormal transactions. GateChain also utilizes an extraordinary clearing mechanism to prevent asset theft and private key loss. GateChain hosts HipoDeFi, a one-stop platform with a swap module, token bridges, yield farming instruments and so on.
Gate Ventures is a VC arm of the ecosystem focused on blockchain infrastructure, decentralized applications and infrastructural projects. By March, 2022, it backed a number of unicorns, including 1Inch Network, Perion, Woo Network, Blockfills, SEBA and so on.
GateToken, or GT token, is a backbone element of the product’s tokenomic design. It was launched as a core element of Gate.io’s ecosystem tokenomics to bridge all of its services between each other. Currently, it inches closer to the top 100 by market capitalization of all crypto assets with $1 billion in market cap. GT is available in 17 trading pairs across 12 centralized exchanges in pairs with Bitcoin (BTC), Ethereum (ETH), U.S. Dollar Tether (USDT), Terra USD (UST) and fiat USDs.
Gate.io Startup: How to Participate
In order to be eligible for participation in IEO rounds, crypto enthusiasts should first register their accounts on Gate.io. The level of participation for all IEOs depends on the VIP tier of the user and his/her GT holdings.
To be eligible for VIP1 tier, users should hold GT tokens, achieve predetermined numbers in 30-day trading volume, and hold spot assets. All details are explained in the ‘Fees’ manual.
Limit of participation is capped at 1,000 shares of listed projects for all participants. In order to participate in Gate.io Startup offering, crypto holders should log into their accounts and click on "Startup" on the top navigation bar.
All available products can be checked in the ‘In Progress’ section. Crypto holders can find the information and choose the project to invest in.
Then, the participants should click ‘Place order’, pass KYC and sign a Purchase Agreement.
Once the order is placed, user can check its status in "Order" - "Startup" page
The process of participation through mobile phone looks similarly: ‘Startup’ bar can be found in the second line of main page.
Also, as Gate.io Startup is committed to the policy of due diligence, every investor should pass KYC/AML checks to take part in public fundraising rounds.
Marie Tatibouet, Chief Marketing Officer at Gate.io, highlights that the opportunities unleashed by Gate.io Startup are amazing and push the barriers of Web3 adoption for professionals and newcomers:
Over the last year, the crypto market has reached new highs as the amount of both traditional and institutional investors in the industry grew rapidly. As interest in the market continues to grow, we remain committed to supporting new projects in the space, allowing investors to get in early on some potential gems through Startup.
Closing thoughts
Gate.io Startup is an IEO launchpad created by Gate.io, veterans of the cryptocurrencies segment. It is an integral part of Gate.io’s ecosystem with its CEX, VC incubator, own blockchain and native token.
Gate.io Startup pioneers a novel approach to IEO security and decentralization. It combines inclusive participation for all investors, a thorough review of all projects listed and strict KYC/AML checks.
Please be noted that Gate.io may not be able to provide full scale service in certain markets and jurisdictions, and Gate.io may restrict or prohibit the use of all or a portion of the Services from Restricted Locations, such as the United States of America, Canada, Iran, Cuba. For the latest list of all the restricted locations, please read the User Agreement “Section II Eligibility” via https://www.gate.io/docs/agreement.pdf.
As the price of top cryptocurrencies hit all-time highs on Tuesday, a key sentiment index showed that crypto investors are displaying extreme greed.
A "crypto fear and greed" index, a metric published by Alternative.me, rose from 83 to 95 on Tuesday, suggesting a level of "Extreme Greed." Similar to other gauges that track fear on traditional stock markets, this crypto index uses a number of metrics to measure investor sentiment from a scale of zero to 100, ranging from "Extreme Fear" to "Extreme Greed".
The tool measures two primary emotions that influence how likely investors are to purchase cryptocurrencies: fear and greed. Extreme fear is indicative of investors being too worried, meaning they are more likely to retreat from the market, prompting prices to fall and that could mark a good time to buy, according to Alternative.me. On the other hand, when investors get too greedy, this could indicate cryptocurrency prices are due for a correction.
The index last reached the same 95 level on January 6, just two days before bitcoin hit its first record high of the year near $41,000. In due course, the price toppled to as low as $28,750 by January 21.
Factors used in the index's measurement include current volatility, market volume, sentiment analysis on social media, market cap share, and Google trends data.
On Tuesday, Bitcoin hit a fresh high of $48,000 after Tesla's $1.5 billion investment in the token, ethereum soared past $1,800 for the first time ever, and Dogecoin jumped 7% to $0.07.
While Tesla shareholders are reacting positively to the news, it remains to be seen how shareholders would react if a decline in bitcoin's price negatively affects Tesla's future earnings, said Jerry Klein, managing director at Treasury Partners.
Separately, billionaire Mike Novogratz said Monday that he thinks bitcoin will more than double to $100,000 by the end of 2021. Meanwhile, cryptocurrency analysts expect Tesla's purchase to reassure retail and institutional investors about adding or holding cryptocurrencies.
The United States rolled out new sanctions on Wednesday against more than 40 individuals and entities accused of evading the ongoing wave of penalties imposed on Russia as punishment for invading Ukraine.
The sanctions include the first set of penalties against a cryptocurrency mining firm in relation to the war.
The Treasury Department’s sanctions arm designated the commercial bank Transkapitalbank, which has operations in China and the Middle East.
Transkapitalbank is a privately-owned Russian commercial bank that the US says has helped sanctioned clients process dollar payments, by providing an alternative communication channel to SWIFT — the dominant system for global financial transactions.
The treasury also targeted people and companies led by US-designated Russian oligarch Konstantin Malofeyev — the founder of a Russian Orthodox news channel, Tsargrad TV.
Malofeyev was also designated for sanctions in December 2014. The treasury said he was one of the main sources of financing for Russians promoting separatism in Crimea.
In a first, the US government issued penalties against a cryptocurrency mining firm in relation to the war.
Crypto targeted for first time by war sanctions
Digital currency firm Bitriver AG and 10 of its subsidiaries were included in Wednesday's package of sanctions from the Treasury’s Office of Foreign Assets Control.
"The United States is committed to ensuring that no asset, no matter how complex, becomes a mechanism for the Putin regime to offset the impact of sanctions," the treasury said in a statement.
Lawmakers and administration officials have voiced concerns that Russia may be using cryptocurrency to avoid pain from the avalanche of sanctions imposed on banks, oligarchs, and the energy industry in recent months due to the invasion.
Experts say an increased reliance on cryptocurrency would be an inevitable avenue for Russia to try to prop up its financial transactions, but treasury officials have rejected the claim that cryptocurrency could be a major driver of sanctions evasion.
Adam Zarazinski, CEO of Inca Digital, a crypto data company that does work for several federal agencies, says he predicts more penalties against cryptocurrency miners and firms could be forthcoming, as oligarchs and sanctioned individuals find ways to offload their money to avoid sanctions impacts.
He added that the sanctions may not have as grave an impact on Bitriver as the US hopes, because even though Bitriver was sanctioned by the US government, "it doesn’t actually stop Bitriver from doing business — it can no longer interact with the US financial system," he said.
In a statement that was released shortly after the sanctions became public, Treasury Secretary Janet Yellen said "Russia’s invasion is an assault on fundamental international rules and norms and threatens the core of the international order".
"The United States stands resolutely with the Ukrainian government and the Ukrainian people".
The statement was released in connection with the joint International Monetary and Financial Committee and Development Committee meeting related to the International Monetary Fund and World Bank spring meetings.
