This is a BitsTODAY opinion editorial issue written and edited by @fungibles
What is going on in crypto markets right now? And how does it affect Bitclout? For one, the core Bitclout team has regularly changed the Bitcoin price to which $clout is pegged in order to manage the price shown on Bitclout.com. That’s why you didn’t see it dip as hard as other crypto assets like Bitcoin and ETH in recent weeks. Feels good huh?
Platform usage slowed significantly the last time BTC dipped hard. That’s what happens in crypto when there’s big dips; participants get discouraged or worse, bail. Telegram and Discord go quiet… maybe people actually get some work done. There’s no doubt that the same is true on Bitclout. We know it’s price plays into our psychology and has a powerful grip on our dopamine receptors already, especially now that we have a concrete, trackable value associated with us. It’s in the platform’s best interest not to have creators see their creator coin price go down, hence the tomfoolery with the BTC <> $clout price peg.
More optimistically, perhaps the team is adjusting the peg because $clout will need to stand on its own eventually, i.e. when it gets listed on exchanges. Regularly adjusting the peg and ‘breaking’ the relationship with Bitcoin may be a way to wean people off of it, so to speak.
On the topic of exchanges, prices, and dips, if you have been following the markets in the last weeks you may still be recovering from the huge crash that saw ETH trade down to ~$1,700 and BTC down all the way to ~$27,000. Was that the dip to end all dips?
While prices have recovered, we at @Fungibles don’t believe that was the last selling we’ll see. A futures trader in our fund summed it up as follows:
“Understand that the markets are ‘manipulated’ and designed to move money from one group to another group. Those with the most money and liquidity have the most power to control market movements. If there’s a group with an immense amount of money, whose sole, only job is to use that money to generate more money, why in the world would that leverage not be used in the strongest manner possible? Consider this — which market movements would generate the most money for said powerful groups? If I were them, I would continually generate fakeouts, tempting retail traders to take inopportune positions. After setting limit buys to establish a price floor, and filling my bags to the extent I want, I would then put in large, continual market buys to raise the price and make it look like the dip is over. Rinse and repeat…”
Interpreting our trader’s take here a bit, our view is that the most recent dips we’ve seen are not the last, nor the largest to come. We have limit buys on ETH as low as $1,248. We expect the eventual bottom to settle around there, with BTC closer to $30k. The better news? From there we expect to see a larger bull run, with big fish and large institutions piling into ETH and BTC at the lows. Crypto is still the future, but it will take more time than it perhaps looks like right now.
Our advice? Set low limit buy orders; if you don’t get them, fine. If you do? Congrats, you bought at a bargain. Whatever you do, don’t fomo into something you don’t understand. And yes, that includes creator coins, too.
