European Central Banks and Fed are taking a Hawkish stance. Perhaps it’s time to reevaluate your portfolio and investment strategy going into the New Year.

It looks as though things are going to be getting tight in the economy, investors are moving into low risk stocks. November’s producer price index show’s that it is up 9.6% from last year. The conclusion of the Fed’s latest meeting and the recent moves by Central Banks are looking hawkish.

When you are focused solely on Crypto you can forget to look at the wider economy, and it’s apparent in alot of the posts and discussion in the Cryptocurrency Community. While I, and many others believe that Crypto is going to become a force that will shake the current centralized financial industry. It hasn’t become that force just yet. Therefore the current movements of that same financial industry effects us too.

According to CoinGecko, at the time of writing; there are about 11795 known and listed tokens, or “coins” across 536 different exchanges. While we have nicknamed a vast significant amount of these tokens under various names. Such as Shitcoin, Altcoin/Alts, Memecoin etc. They are still a part of the Global Crypto market, for better or for worse. The recent hawkish moves in the economy outside of our little closed economy mean that it’s looking as though Crypto will not be seeing any significant amount of new money coming in. The reason being that major investors/financial institutions have moved their focus away from the riskier growth stocks towards low risk options instead.

What does this mean for Crypto?

We may be continuing to see a decreasing global market cap as more investors and “Paper Hands” begin to move out of Crypto as more hawkish news begins to circulate. This is to be expected of course, as with and “FUD” comes people selling out. But typically after each global “dip” of all assets, we tend to have a global “pump” that follows. This pump typically also includes a large number of Alts. But not all Alts survive even a minor dip, some are left forgotten about and simply “die”.

I have personally moved out of any Crypto that I believe hasn’t got a significant project/use-case providing a value. I made this move because I expect that as things look more and more hawkish, many people will be moving their money out of alts and instead into “safer” assets, for example Bitcoin, Ethereum, etc. Much like how currently growth stocks are being sold off for lower risk options. The similar fear that you might have invested in something that’s going to be one of the assets that “die” during a dip will set in.

The fear will mean that the fresh supply of the next “moon shot” token you just bought is going to be the first thing you will sell out of. Followed by tokens you bought that one time because somebody mentioned it, but you never did any research on it. Call me a “FUDster” if you want, feel free to post your own opinions in the comments. But before I end, I’m going to be honest with those of you who read down this far. Believe it or not… I can’t tell the future! Wall Street, the Fed and European Central Banks could all be full of shit and the economy will be booming next year, who knows.

Just ask yourself one thing, if the economy does take a turn for the worst, do you really think people will still be buying dog coins?


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