Market corrections and the Federal Reserve

Source: Coinmarketcap.com

We just had another correction! What’s happening? The answer lies in the broader macroeconomic environment. Let’s talk about what the Fed is doing, the consequences, and what this means for crypto.

What is sound money & how can crypto help?

Growth in productivity alongside hourly compensation since 1948. Clear divergence around 1970. Source: wtfhappenedin1971.com.

The United States departed from sound money in 1971 (#wtfhappenedin1971). Sound money is important for economic activity and our departure from it causes profound issues. But, with crypto, the recovery of sound money is within our reach.

ETH Bull Run Entering New Phase

ETH MVRV Ratio. May 12, 2021. Source: Glassnode.

Although this bull run is different in multiple ways, investors in ETH should be cautious. ETH’s Market Value to Realized Value (MVRV) ratio and Net Unrealized Profit/Loss (NUPL) are touching multi-year highs.