On our journey, we’re learning all kinds of nuggets of information – however, the further down the hole we get, the more it seems like chaos fuels crypto movement.


I’m going to be honest…

While I asked you along for this journey down the crypto rabbit hole, I didn’t do so out of some altruistic feeling. I just figured it’d be safer for me to have company while I educated myself and I would seem less crazy talking to you guys than talking to myself.

Plus, bringing you guys along with me holds me accountable so I won’t slack on this when I get frustrated enough to that I want to ram my head through a wall.

Now, it’s funny, because I’m FAR from an expert.

In fact, I bet some of you (if not MANY) know way more about Blockchain technology than I do – but just when I thought I wasn’t learning anything, I had a conversation over Thanksgiving with some people that made me realize just how much I’ve learned so far.

One of the guys at the table brought up DAOs (Decentralized Autonomous Organizations) and I jumped right in, even telling them about the recent $35 million effort by ConstitutionDAO to buy an original copy of the US Constitution (if you want to read the article I wrote on this DAO, click HERE).

At that point, I was pleasantly surprised at just how much I was able to discuss with these people.

However, in that same spirit of honesty, I really didn’t feel like I’m getting any closer to understanding what makes cryptos move than when I started this expedition—but today I may have gotten a little breakthrough.

The Breakthrough… Maybe

I read something that really made me think about the factors that make cryptos move. It was a simple headline that finally clarified it for me. The biggest force that keeps the price of cryptos soaring…is chaos.

Before we get into it, here’s that headline:

“Cryptocurrency Price Check: Bitcoin Bounces Back After Omicron Scare”

Now, unless you’re living under a rock, then you know that on Friday, November 26th, the markets took a tumble.

The Dow was down almost 1000 points, dropping from $35,804.36 on November 24th to $34,870.53 at closing on Black Friday.

Why is did this happen?

Well, most pundits and experts point towards the announcement of yet another COVID strain, dubbed “the omicron variant.”

But as many on Wall Street were biting their fingernails down to the quick, crypto investors were dancing a jig—because while the markets were dropping like somebody tossed them out of a window, Bitcoin made a bit of a comeback.

Bitcoin – the mack daddy of cryptos –had been experiencing a bit of a pullback from its high of $69,000 and was hovering around $53,000.

But on Friday, we watched Bitcoin make a comeback, and it’s currently holding strong at $58,700 as of this writing.

This whole thing got me thinking: Is chaos what makes cryptos move?

Crypto Chaos: A Piece Of The Puzzle

Sure, there was a bit of a selloff on Friday when the news first hit the wires…

But it bounced back pretty quickly. Even Wall Street seems to be making a comeback—but Friday was still pretty cruddy overall.

So, what is it about cryptos that makes them recover faster?

Is it the fact that there’s really no red tape to deal with?

Or is it that crypto investors are even more shark-like than stock traders and decided to bite when they smelled blood in the water?

It does seem that the more hectic things get on Wall Street, the better things are for cryptos. This isn’t always the case—but it happens often enough to make the trend noteworthy.

Is this the key to cryptos?

No, not even close…

But it definitely is a piece of the puzzle – and one that I’m glad I’ve found. I’ll be tracking the indexes from here on out and comparing to cryptos, so we’ll see if there’s a correlation or if I’m just off on my assessment.

Either way, stay tuned to see if I’m right – or simply to watch me eat crow if I’m wrong.

I’m tempted to reach out to Ian King to see if I’m on the right track—and you can do the same, getting in his hip pocket by joining his Next Wave Crypto Fortunes for the inside scoop.

As for me, I’m going to stick to learning these things the old-fashioned way: trial and error.

Thanks for joining me!

 

“Chaos was the law of nature; Order was the dream of man.” – Henry Adams