Should investor enter into crypto - October 20222
With crypto trading at such low levels, should investors enter into crypto – October 2022 ? The United States inflation is 40 years record higher, which triggered panic selling in all asset classes. The 10 year US treasury yield at high levels 3.9%+, and major US stock indexes, Dow Jones , S&P 500 and Nasdaq are at two year low with are at attractive level to incest.
The crypto is in beers grip since long ( Crypto Winter ). In year 2022 crypto has corrected to to 75% to 80%. The high inflation and aggressive monetary policy tightening by Federal Reserve has led to high bond yield. The higher bond yield has triggered flow of money from risky investment like crypto to risk free investments like bonds.
Investment opportunity with investors.
With the bond yield at 3.9% plus level which is three times last years yield. Sock market at two year low and crypto in grip of winter crypto. Today the investors has good opportunity to invest in different investment options, risk free like bonds or risky like stocks or CRYPTO.
(1) Investing into Bonds.
10 years US treasury is three times higher from last years level. After touching as high as 4.0% plus in June 2022, it is now at 3.9% plus levels. This is good investment for investors who cannot take risk or are looking for short term investment.
People should invest in these bonds there emergency fund or any other fund needed in short term.
(2) Investing into Stock Market.
The US stock market major indexes are corrected 20% to 25% from its high in 2021. History has shown, the time stock market take to fall, in almost same time it rebound to gain its high levels. But no one can say that market is bottomed.
Investors ready to take risk can do there stock picking now. As US economy may go into recession, it is likely that market may further fall by 10% to 15%.
(3) Investing into Crypto Market.
Crypto is one of most risky investment. Presently crypto is in rough phase of crypto winter. As corrected 75% to 80% from its all time high. Increase in 10 year US treasury rates and fall in GDP has triggered fear selling in crypto market. Is it an opportunity or avoid to enter into crypto market.
With Rough Winter Cryptocurrency should investor enter into crypto
One of the in everyone’s mind is with this rough winter cryptocurrency should investor enter into crypto in October 2022. What I understand is, its true even major crypto coins , tokens are 75% to 80% corrected from its top. Still should investor enter into crypto market ?
October 2022 month so far being the worst month for cryptocurrency market. So far in 11 different hacks $718 millions are already stolen from crypto exchange. As more of hacking is occurring raising the question mark on the security of crypto exchange blockchain technology.
It is expected that crypto market will remain highly volatile in coming few days or months. As is past three months crypto being range bound Bitcoin remain between $19k to $24K. There is every chance that before recovery it may give another leg off fall, which is expected upto $6K.
Before making investment at present of in fall likely, which coin, project token to be invested. From our experience we are confident that all coins, tokens will not raise to the earlier level. Which project to invest in cryptocurrency , we need to understand how this eco system work.
Conclusion
Investment for various goals in personal life is very important. But should the investor invest into crypto in October 2022. Due to low volatility in past Crypto market may have high volatility in coming few days. Once US economy will start improving, crypto market will see sharp recovery. But it is possible that bitcoin will see $6K before recovers to $50k. While market correct all crypto currency corrects but recovery may not happen in all. One has to select projects or tokens very carefully.