Scott Melker, a well-known cryptocurrency analyst and influencer, tells the compelling story of a former DJ and world-renowned music producer who turned to crypto after he retired from his career as a musician.
As The Wolf of All Streets is more commonly known, he has been a guest on our podcast before. If you’d like to learn more about his career as a DJ and past experiences, check out the episode from 2021. In June 2021, Bitcoin’s value had fallen from an April 2021 all-time high to just $30K.
This episode discusses what happened in the past year, where we are now and what we can expect from the crypto market moving forward.
Bitcoin’s Yearly Price Overview: From Crypto FUD To Real Macro Problems
Melker asserts that there are many similarities and differences in the latest consolidation, which took place between $33K to $45K in 2022.
“Last May, we had a very clear FOMO type of top. Memecoins were running wild, NFTs were live on Saturday Night Live (TV program).
Then, we were struck, sort of simultaneously, by China’s gooffilen. We knew that we would recover, but it was a fundamental narrative. What will happen to 50% of the hashrate?
The energy debates and Tesla’s decision not to accept Bitcoin were all part of the story. All that was happening when the vaccine came out in April-May, and everyone had to take a vacation for the summer.
He stated that the volume of the summer 2021 was very low and that nothing had happened in the wake of the fundamentals. He also claimed that the price of oil had reached $42K in January 2021 – something we only saw a few days before the recording.
Scott Melker. Source: Twitter
“This time, we have the Fed… then Ukraine invaded by Russia and now we have a conflict. Global uncertainty is much higher this time. Last summer, we dealt with crypto FUD. Now we are dealing with legitimate macro problems.
Here, I would say that I am more cautious. I don’t believe Bitcoin is dying or going to zero. None of that.
He said that he sees a lot more sideways action but that there is no reason to panic about the macro.
Sensible Regulations can be the catalyst for big money
Sideline participants are usually looking for a catalyst during a volatile price action. The Wolf of All Streets says regulations can be either a good catalyst or a disaster.
“If we have sensible regulations, I believe that that could be a tremendous catalyst to the upside because it would give large money more confidence to enter the market.”
He believes that the industry is in the “fight you” phase of regulations, where legislators are reluctant to grant the green light. Melker doesn’t rule out the possibility that countries might take a more hostile stance to cryptocurrency.
Melker disagrees with the assertion that crypto can be used to bypass Russia’s sanctions in relation to the Ukraine war. This is because sanctions are designed to isolate Russia from the US economy. Users would not be willing to risk the consequences of violating them in the first instance.
The Summer of the Layer One Blockchains
Melker admitted that he didn’t see the layer one trade before, but he also said that he “saw” it so well that he was able to make a profit.
This is due to the dramatic rise in value of layer-one cryptos like Luna, Solana and Avalanche. This topic has been a hot topic in the industry for a long time.
“I bought all the blockchain layer-ones last summer. Split your money and pick your top five or six. We’re going live in a multichain world, so invest in them all. Each one will have a use case.
He stated that while “Solana” may be the metaverse and gaming chain, perhaps Avalanche will become the institutional chain. Maybe Ethereum remains the NFT or DeFi chain.
We also discussed Melker’s thoughts on current hot topics like metaverse, non-fungible tokens and play-to-earn. We invite you to listen the entire episode on Youtube to hear Melker’s thoughts about the future of the industry.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.