Death by a Thousand Cuts? We think not

Having a cut sucks, it really sucks, but you know what’s worse? A thousand of them, slicing and dicing their way through and each one penetrating deeper than the next. What follows is repairing and healing and continuing to become battle hardened. Ups and downs in the market are an everyday occurrence and are fully expected and as we are calculated risk-takers, we thrive on these opportunities. I’d like to examine the paradox that which we as traders in this space, live and breath in.

Trading in the digital assets space is an exciting place to be, with no shortage of opportunities as well as mind blowing price appreciation, we have little to complain about. I truly believe it is today’s premiere space to be involved and trading in and offers countless ‘favourable situations’, considering it’s illiquid exchange nature as well as thriving over-the-counter (OTC) networks, it’s a recipe for a traders utopia. As we’ve been observing and capitalizing on 140% gains over the last 90 days we’re reminded that this is something that no other product space is capable of offering, in any universe, alternative or not.

Over those last 3 months, as we’ve experienced emotional (and price) highs while navigating our way through the turbulent waters of this space, a certain euphoria had set-in, all guised over the backdrop of a potential game changing event that was destined to come, one with an uncertain but hopeful outcome. As the fateful August 1st date approaches, markets have begun to sell off considerably, delivering what has seemed like a thousand cuts over the last 30 days (33% haircuts all around). As this event remains without precedence and one that lends a inkling of fear into the hearts and minds of those that live and breath in this space, many have seemingly taken considerable funds off the table and are waiting out the storm on the sidelines. To the casual observer (or mainstream media), this is the end of the world, life as we know it is over, there’s no coming back. From flat out euphoria to restrained ambiguity, this is the life of the emotional rollercoaster in this space, wash, rinse and repeat.

As our trading desk has observed, we’re just getting started, the shifting demographic from tech heads and initial market entrants to institutional smart money is well underway, this is where things get interesting. With inflows from such on the rise and what is seemingly a rush to ‘be involved’, one cannot help to see the upside and promise that the space will bring. W0rldwide acceptance is still not there yet but it’s not needed, not at this stage, the slow crawl (over the larger timeline) is well documented and is forming the basis for greater things to come. The expected immaturity of the market still remains but the interest in it’s future is what drives it. Bulls generally play their cards close to their chest and their driven, unflinching nature is what lends credence to the positivity surrounding this market.

As we look to the future, the current market outlook is one of ambiguity in the short term, of confidence in the medium term and of unfettered exuberance in the long term, now we only need to draw out the time lines for all.