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Gong xi fa cai… the greeting for the Chinese New Year means something like “I wish you a lot of wealth and prosperity”. If you are not used to that in the western world, you may be surprised about this Chinese saying.

Since it is the weekend of CNY, I want to wish you exactly that for 2023. And… crypto is helping us right now… the market is pumping like mad!!

Besides wishing you “Lots of Wealth for 2023,” I wanted to give you some thoughts on WHY the market is pumping right now. Anything chart or blockchain analysis, I don’t give it that much. I don’t think the past predicts the future.

What can speak for a sustainable pump, however, is that currently really many people (including me) are skeptical that the pump is sustainable. Most of the time, the masses are wrong – which is, of course, an opportunity here.

But it’s not just the crypto market – stocks (especially tech – NOT the “boring” Staples) are pumping nicely as well – here’s the last 7 days. This means there is some general bullishness in the market:

Besides the meager liquidity, I see 2 broader reasons:

First, Genesis just went into Chapter 11 – this is where I can imagine the benefit of pumping crypto for closing an audit. If prices go up 20%, assets are up, but liabilities may not.

The second reason may be that Silvergate, an important crypto bank, is currently having problems and that some stablecoins may be flowing out of there in order to buy crypto. This is currently more rumor than fact, but I can imagine that well and would explain the crypto pump via BUSD for example.

Even though everything is currently full of Hopium again, I am NOT going all-in. Rather, I use the dips to buy crypto and get cashflow via my own company. In the long term, I think that makes the most sense.

So if you feel FOMO right now, calm down. You should not be standing here with 0% Crypto allocation, but I would be extremely surprised if we do not see more favorable prices again soon!

With that, once again, “Lots of wealth and prosperity in 2023!”

Gong xi fa cai!

Julian