Hi hodlers,

Image source - Berrycream.io

The current situation of market is a bit demotivating as there is lack of momentum from the side of investors. The additional add-ons of this situation are the falling crypto currency exchanges. We saw when LUNA went down with UST. It just not demotivated the existing investors but also gave a bitter taste to the people who are looking to enter the market. I feel the below reasons are the points of concerns.

The failing exchanges

FTX /FTT failure once again proved why traditional transaction system is better as it is backed by sovereign authority which has a very scarce chance of defaulting. The other main reason I guess is the tough competition that is ongoing between the various exchanges. We have witnessed that how every new cycle of boom in bitcoin, surfaces new exchanges. I remember poloniex during 2017 pump. That was a great exchange back then!

The internal politics

There are a lot of things going-on behind the scenes. For example, Da Kwon's case. Not everyone is too invested in day to day news of cryptos to plan for their portfolio. A tweet can give us a good pump of at least 3%. Few days back I saw one such tweet from binance's CEO, which brought 3% up changes in the market. This reminds me of shitcoins rug-pulls back in 2019. Oh God, I was a victim of such rug-pulls as well.

The "oh-Am-not-interested!" stance

A lot of tightening in monetary policy of various countries, limits the money in the hands of people which shows a domino effects in almost every kind of market, whether its a national stock market or the crypto market. As long as people are having lesser money in their hands, we can't expect any momentum soon. All we have to rely on the tweets of big players to see a minimal momentum in the market.

Hm, what are your thoughts related to current market situation?