The tidal wave of news of China’s falling economy triggered a panic in the market.
Traders should not be fooled by these “red flags” as all is not lost.
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The world is ending. China’s economy is on the verge of collapse. The contagion will spread to Europe. Sell your wives, children and kidneys, the end is here!
But before you do that, listen, because not everything is what it seems.
We have been here before, many times. And the truth is, instead of a bloodbath, there are a few things you can do to make money in the cryptocurrency markets, right now! But only those who see through smoke and mirrors can.
Remember when Elon Musk, “The Dogefather”, went on Saturday Night Live to promote DOGE as the future of cryptocurrencies, only for its price to drop 30% immediately after?
Ok, keep that in mind as we go.
The big “monsters” in the cryptocurrency market: the fear of China and the euphoria DXY
“Buy the blood, sell the euphoria”. Surely you have heard this expression in the world of trading. Let’s analyze it with critical thinking.
You are supposed to believe “China will collapse in X days” due to a combination of the following factors:
- COVID-19 wrecking supply chains and productivity.
- Collapse of the real estate market (the pyramid scheme falls apart).
- Power outages.
- Heat waves.
- Terrifying communism.
This kind of “news” is all over the Internet. You can’t escape them. There are many videos and articles with shocking revelations:
- Real estate market pyramid schemes involving ordinary people going massively into debt (paying 50 times their annual income for an apartment, even before it’s built!)
- energy inequality. Elon’s name comes up again as Tesla is accused of hoarding electricity, while commoners and other companies are told to put up with potential blackouts.
- Quarantines for COVID-19 involving allegedly starving civilians unable to go out and buy food.
What are the markets doing during this time? Taking refuge in the dollar to escape the effects of an impending collapse. Everyone ignores the uncontrolled printing of money and rising inflation just because the United States has lower than expected unemployment rates.
But consider the context of all this news!
The DXY (US dollar index) is stuck at resistance levels not seen for over 20 years, and a pullback would be a huge relief for the cryptocurrency market (and other global currencies). But everything and everywhere screamed that DXY would continue, the euro might crash and China was on the verge of doom.
Let’s summarize and do the equation:
Fear over the China situation plus euphoria over DXY = Magic Tickets for the insiders and a bloodbath for the sheep.
This is what happens next in the cryptocurrency market (and how you can make money)
Shortly after the news storm from China, there was a boom in the cryptocurrency market. Just luck? Nope.
Once you understand how the market really works, you can learn to reduce noise. ProfitFarmers saw this latest cryptocurrency market explosion in August and shared their insights with their community for free.
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