Over the past year, the cryptocurrency market has experienced an impressive rise. However, in recent months, from the point of view of a classic investor, cryptocurrency investments are rapidly losing their attractiveness. Looking for the best crypto investments is becoming increasingly difficult.
Are crypto investments safe?
Since record levels reached in November 2021, the total capitalization of the market has decreased by three times, and this is not the limit. That’s why it’s hard to choose the best crypto investments for 2022. Cryptocurrencies, unlike commodities and stocks, are not subject to business cycles and the price of key instruments in this market is much more dependent on the amount of fiat liquidity that investors can provide.
Are crypto investments safe? The global liquidity provided to the markets by the efforts of the world’s largest central banks is now at its peak. But the tightening of regulators’ rhetoric has already begun, and liquidity will be squeezed, and no one knows when that process will end.
The amount of money placed in high-yield and super-risky assets like cryptocurrencies is shrinking. Therefore, there is no prospect for a recovery growth of the crypto market in the foreseeable future, and short-term crypto investments are becoming too risky.
Its dynamics in general largely repeat the situation with cryptocurrencies: in the U.S. indexes declines over the last year, only slightly less significant than in bitcoin. I am not optimistic about the US market prospects on the back of record inflation and the Fed’s intention to keep raising rates.
The Chinese market may seem interesting to some people. But I do not recommend working there without being immersed in the context, especially if there is a real risk of a slowdown of the Chinese economy. But to buy any assets today, in the current political and economic situation, with an unclear prospect of resumption of regular payments only next year is a big risk.
High-yield bonds, rated BBB or lower, offer higher yields: individual issuers, typically small regional developers and MFIs, trade at yields to maturity of 16 to 22% per annum. However, the risks in high-yield bonds are also much higher – avoiding serious drawdowns in the event of borrower default is only possible when building a well-balanced portfolio.
Risks associated with investments in square meters are incomparably lower, but few real estate objects can boast a high yield. For example, in the commercial real estate segment the yield in some areas (warehouse, retail, office) can be as high as 9-10% per annum.
However, the pressure on prices in this market today is caused by increased vacancy rates, stagnation of rental rates, and a decrease in investment activity. As a rule, investments in apartments don’t yield more than 2-3% per annum.
Qualitative projects with profitability up to 20% per annum exist in the segment of expensive apartments or country real estate focused on renting. These are, for example, projects that work on the Home as a Service model.
The real sector
Despite the unimportant prospects for the global economy in the short term, at the micro-level business continues to operate, and on this you can earn good money. In contrast to real estate, here you can find objects for investment with a return of 20% per annum for several months to 2-3 years.
You can invest or lend to real businesses operating in the real economy: cafes, dry cleaners, and rental services. It is better to do this through specialized investment companies, which act as a kind of investment guides, helping to choose an object for investment, to prepare and go to the deal.
And remember, you can also consider the best long-term crypto investments 2022 if you are willing to take risks and invest money for the long term.
BTC price holds 6% gains as Bitcoin battles for ‘crucial’ $28K support
Bitcoin (BTC) passing $28,000 hints at bullish sentiment, but reclaiming it for good is essential, analysis says.
In an X (formerly Twitter) post on Oct. 17, Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, described the $28,000 mark as a “critical milestone” for the BTC price.
Glassnode: “Keep an eye out” for $28,000
After snap volatility, which caused Bitcoin to hit $30,000 for the first time since August, the largest cryptocurrency has managed to preserve some of its gains.
For Allemann and Happel, the pair is now at a defining crossroads.
“The crypto market is hinged on BTC’s ability to breach and consistently maintain a value north of $28k,” part of their commentary stated.
$28,000 has formed a battleground ever since Bitcoin first crossed it in early 2021, and liquidity has traditionally surrounded it as bulls and bears fight to secure control over long-term trajectory.
Data from the trading suite DecenTrader, among others, confirms that the status quo remains despite recent BTC price moves, with $28,000 lying in a zone between major longs and shorts of varying leverage.
“While this pivotal milestone was momentarily attained on futures, the spot market price peaked at $27.98k earlier today. It’s evident just how crucial this price point is in the larger scheme,” Allemann and Happel added.
“The rapid movements and these price thresholds aren’t just numbers. They signify investor sentiment, market dynamics. Keep an eye out for the 28k level.”
Road to Bitcoin halving contested
As Cointelegraph reported, predictions over what the future will bring for Bitcoin both before and after its next block subsidy halving in April 2024 differ considerably.
In an interview last month, DecenTrader co-founder Filbfilb eyed BTC price galvanizing itself for upside during Q4, possibly reaching $46,000 by the halving.
Some well-known market participants, however, remain risk-averse. Among them, popular trader Crypto Tony and others are betting on a pre-halving return to $20,000 for a final local bottom.
“Many can scream they are long right now and caught that move, but if your not taking profit here at resistance your doing something wrong,” he told X subscribers about the recent surge.
“I personally will not be long unless we flip that $28,500 level into support.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Ripple job posting hints at possible IPO, XRP community says
Fintech payments company Ripple released a new job posting on Oct. 16 for a shareholder communications senior manager across multiple locations in and outside the United States. The job posting prompted many crypto enthusiasts to label it as an official hint about the company’s plans to go public.
The job posting outlines that the role will require direct communication with shareholders — a concept generally associated with publicly traded companies. The chosen candidate would be responsible for developing and implementing communication and relationship management strategies for “existing and prospective investors, current shareholders, and financial analysts.”
The job description emphasizes the candidate’s need to create strategic plans specifically suited for situations like “M&A [mergers and acquisitions], investments, liquidity events, and other high-impact moments.“
The role includes creating investor-focused materials like “presentations, fact sheets, case studies, and analyses“ to inform and educate potential investors about the company’s prospects and performance — a necessary component of the initial public offering (IPO) preparation process. The responsibilities of the post also include maintaining a shareholder database and managing routine communications like quarterly updates.
Many XRP (XRP) proponents and the pro-Ripple community on X (formerly Twitter) are referring to the job posting as a hint that there may be an IPO. Some key executives from the company have also alluded to the possibility that Ripple might go public but haven’t given any indication of timing.
Anyone notice the recent job openings at #Ripple?
The only reason you need a Shareholders Communication Manager.. is for an IPO.
— Chad Steingraber (@ChadSteingraber) October 16, 2023
The crypto-focused payments company has recently been in the limelight due to the U.S. Securities and Exchange Commission’s (SEC) lawsuit alleging XRP is a security. Ripple scored a major win in the lawsuit in July when a judge ruled that XRP is not a security in terms of sale on digital asset exchanges.
Key Ripple executives have claimed that even though the SEC lawsuit has cost them many business opportunities in the U.S., most of its remittance business lies outside America.
Banks’ crypto exposure must be disclosed — BIS’ Basel Committee
The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to disclose their crypto exposure.
The Basel Committee comprises central banks and financial authorities from 28 jurisdictions and is a forum for regulatory cooperation on banking supervisory matters. The latest consultation paper is based on the disclosure guidelines in the final prudential standard on how banks should handle their exposure to crypto assets released in December 2022.
The consultation paper aims to set a standardized “disclosure table and set of templates for banks’ crypto-asset exposures,” with a proposed implementation date of Jan. 1, 2025. The Basel Committee has opened the proposal for public comment until Jan. 31, 2024, after which the results will be published on its website.
Under the new proposed regulations, banks would be required to provide quantitative data on exposures to crypto assets and the corresponding capital and liquidity requirements. Banks would also be required to offer qualitative data on their activities linked to cryptocurrencies.
Additionally, banks would be required to offer information on the accounting classifications of their exposure to crypto assets and liabilities. In its proposal, the committee claimed that using a uniform disclosure format will encourage the application of market discipline and lessen information asymmetry between banks and market participants.
The committee also reviewed crypto assets and bank exposure in June. At the time, the committee didn’t delve deeply into the topic, mentioning only that it was focusing on permissionless blockchains and the eligibility criteria for “Group 1” stablecoins.
The BIS has been actively involved in crypto consultations and examining the regulatory aspect of decentralized technology. Recently, the BIS and a handful of European central banks published details of a concept to develop a system to track international flows of cryptocurrencies.
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