Crypto strategy for downtrends

First, acknowledge.

We had a nice bull run, it was short, it was fine, now take those chips off the table.

Inflation is not a joke. Staglation is even less funny. Inverted yield curve usually never wrong, oil picks as well. War don’t help for this climate. China lockdowns also don’t help much…

Yield curve inversion and recessions

Crypto food chain

It’s simple –

US bonds up -> Nasdaq down -> BTC down -> high cap alts down even more -> mid cap alts crash -> low cap alts almost zero out.

US 10Y Bonds on purple, Nasdaq orange.

Finally – what can we do about it?

First, take the chips off the table. It’s not the time to play games, nobody cares about your shitcoins now.

Your strategy should be somewhat opposite to what you’ve practised till now –

  1. HODL on shorts, instead of longs. It’s like a long term investment. Preferably on shitcoins, and start when BTC will fake out another low high.
  2. Play short time in the market for some patterns, preferable short scalp/swing trades.
  3. Every serious drop, buy some BTC for the children.
  4. Grow stablecoins on safe DeFi platforms.
Categorized as DeFi

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