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Don't confuse lower with lowest! by fijimermaid

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· @fijimermaid ·
$2.93
Don't confuse lower with lowest!
![image.png](https://cdn.steemitimages.com/DQmTCQqDP8JbThe6So9hJKq7feBaMmTLAfHztJ2d78gMGMR/image.png)
[source](https://cdn.pixabay.com/photo/2018/01/12/16/15/graph-3078540_1280.png)


People confuse “lower” with “lowest” a lot.  And that's going to lose them so much money.  

Crypto prices are being suppressed because credit is tightening.   In order to suppress inflation, central banks will have to tighten for a while, maybe 12 months, to determine if tightening is doing the job.  Which is going to keep crypto prices suppressed for at least that long.  

People think crypto is at a good price, because it’s lower.  They think they're getting a discount.  They think it's an opportunity of a lifetime.   It's not!  Yet.  

As long as the Federal Reserve keeps raising rates, assets are not a good buy.  You're just buying it from wealthy hedge fund managers and other whales that want to unload their risk on you…don't take the bait.

---

#### When credit contracts, accumulate cash.  When credit expands, buy assets.  

---

Making money in a down market is possible by selling the market short, but this requires debt, and debt I never condone. 

But if you are hard pressed in doing it, don't use options, or any other derivative, because there's time horizons with that, and you don't need that headache.  

Borrow some shares/crypto (carefully), sell back into the market, and just ride it out until inflation comes down and the FED plus other Central Banks start dropping rates again (so far the FED has only raised rates).  

Buying assets now sucks…raising cash is good.  Because cash is going to be really useful  when prices are much lower when credit stops contracting and starts expanding again.

Stay frosty people…and solvent.
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vote details (454)
@joetunex ·
Will use consider buying crypto now, Hive or BTC a good move at current state of the market?


Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@joetunex/re-fijimermaid-5ddvjx)
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@fijimermaid ·
No, and let me give you a reason.

‘Money/credit’ and asset prices are directly correlated.  When there's more money/credit, then there is more money/credit for people to buy assets with.   And when people buy assets, those assets increase in price.

When there is less money and credit, the opposite happens, people sell assets for money, and assets decrease in price.

I want the money/credit scales tipped in my favor…so there is a higher probability of profitability.  And when there's more money in the system, I make long positions.   When there's less money in the system, I make short positions.   

It's kind of like sailing a boat with a current.  I can probably fight the current, but it's much harder to get where I need to go when I do that.  It's better that I go with the current.

Money is like a current.  And the direction that money is going is that it’s getting more expensive (credit)...therefore it's going in the opposite direction…people want more money, and less assets.  The Federal Reserve is raising the cost of credit, and other central banks are thinking about it.  

When something is more expensive, people use less of it.  So that's less money buying financial assets like crypto. And if people aren't buying crypto, they're either holding it or selling it.  Therefore the price of crypto will decrease.  

Plus, in a contracting credit environment, unemployment rises and people's incomes also go down, therefore they raise cash by selling financial assets (like crypto) to pay off debt.  Which puts additional selling pressure on crypto.

In the United States, the Federal Reserve is going to continue raising interest rates to bring down inflation.   And it will probably be 12 to 18 months before they figure out that it's actually working.   

So in the meantime, there will be considerable selling pressure, until the Federal Reserve decides inflation is at its 2% target, and interest rates can level off or start to come down again.  

Then that's when you buy :)
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@joetunex ·
Interesting observation and how you have expressed it, I do think we might still see further dip in the crypto market though probably not on a lager scale like UST/Luna but BTC in the $27k region. 

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@joetunex/re-fijimermaid-5vmoft)
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