Since it is quite obvious by now that the cryptocurrency market, just like its sister the stock market thrive in no to low interest rate environments, it is my belief that the bear market we are currently in could last a whole lot longer… here’s why:

Until I jumped into my time machine this morning, I thought like many of you that what Jerome Powell was currently doing, which is "slowly" raising interest rates over the course of 2022 and maybe on into 2023 as well, that a soon to be 5% interest rate or possibly more will be a decent dose of medicine in order to flush out the bad actors, who have put their essentially free money to work over the last 2 years.

Already we have seen the interest rate hikes take out many of the bad actors already this year, including, but not limited to: FTX, Terraform Labs, Celsius Network, Voyager Digital and Three Arrows Capital, and BlockFi, which are just the cryptocurrency companies, now we are even seeing mainstream companies showing major signs of weakness over higher interest rates, such as Blackstone, BlackRock, and a myriad of other housing related companies such as Zillow.

I think the fall of FTX may have been the catalyst for what is about to happen to all of the remaining cryptocurrency companies, because the full extent to the contagion has not even begun to spread, because the smartest people in the room are keeping their mouths shut until all of their money is safe, but I can assure you, all of these cryptocurrency companies remaining will no longer be able to secure loans in order to keep operating, because the cryptocurrency market is so toxic right now, and even if they did secure a few loans, the interest on them would most likely outpace their measly trading fees that they are currently getting in this extremely long crypto winter.

Also too, the accounting tricks a lot of these cryptocurrency exchanges have been using in this bear market with their own printed out of thin air tokens are about to lose all their steam. FTX tried to the very end to use their FTT token in order to stay afloat, until his arch nemesis Changpeng Zhao got him by the balls, and dumped his shitcoin on the market, essentially landing the death punch to the balls of Samuel Bankman-Fried, and his fugazzi of an exchange FTX.

Now we have to take into account that the United States and the powers that be have not even admitted that things are very very bad at the moment, and are pretending that we are not headed for a major recession, so take that into consideration when you think about these last remaining cryptocurrency companies. Cryptocurrency is discretionary, and when people need to eat and pay their rent, imaginary money is the last thing on their minds, especially when all it does is go down in an extended bear market.

I don't want to be all doom and gloom, so I will say this… fortunes have been made in very tough times, so if you have money to spare, throw it at your favorite coins, tokens, and stocks during these dark times, because dollar cost averaging as prices erode in my opinion is one of the greatest financial tactics.

Lastly, I will get back to my time machine, and leave you with a little fact, that will help you see that we are probably not getting out of this with the slow increase in interest rates the Fed thinks is going to lead us into a so called "soft landing".

At the end of the 1970's and on into the 1980's, the then Fed Chair Paul Volcker did this: He slammed the brakes on the economy by raising interest rates to 20% — tough medicine to prove he was serious about getting inflation under control.

Now you tell me… you really think Jerome has the balls or the backing to do something that bad ass?

Your comments will be greatly appreciated, and thank you so much for taking the time to read my post.