Mercuri's Perspective

We’re going through difficult times, not only in the crypto space, but every market is bleeding the same way and continuing to fall. With U.S. rates rising at a fast pace, a war between Russia and Ukraine, the Covid pandemic, supply chain issues, an incoming recession, etc. NASDAQ is -30.4% YTD, it’s the worst year since 2000, and S&P500 is -20.91% YTD. No wonder we are seeing a huge market correction turning into a recession, as we have seen many years in a row with extreme growth and not an equivalent macro-outlook.

What can we expect? We believe that even if the media hasn’t accepted it, we already are in a recession which will take about 18-24 months to go back to normal, handling interest rates and adjusting market pricings all the way forward. Although, luckily in just around two years, the 4th bitcoin halving will be underway, signaling the next bitcoin and crypto bull run, which will accommodate perfectly with the rest of the markets, giving investors money and huge upside opportunities on capital gains.

Furthermore, no one could have predicted this correction, every analyst believed that the bitcoin cycle of 2021 was going to close around $100k dllrs, but given the rate hikes in the USA, the COVID-19 Pandemic, the war between Russia and Ukraine, and many other macro factors, we are entering into a recession and a global crisis.

But there is one VERY important thing to consider: “Fortunes are made during the bear markets”. As Baron Rothschild used to say, “the time to buy is when there is blood in the streets”. Every investor around the world seems to be greedy when markets are going up, and then panics when markets correct. Given this, we take this opportunity to remind our investors to control spendings, save money, accumulate cash and invest in the future of currency, economics and monetary policy, which is Bitcoin and the crypto space.

Mercuri Capital’s strategy has been holding the assets that we have and concentrating as much as possible on bitcoin as a benchmark of the crypto market. We will keep analyzing every factor; macro, micro, technical and fundamental out there, and we have started a “target list” of projects that will most likely explode and outperform the rest of the market during the next cycle, which we will jump into when the time is right.

Lastly, we have proudly managed to stay out of big projects that have failed, such as Luna and UST, which even managed to bankrupt the crypto fund 3AC. Only the best projects, and most importantly funds, will remain standing going forward, and we are very happy to have managed 5+ years of excellent relationships with our investors. As always, thank you everyone for your trust and we will sweat every last drop to outperform every manager out there and reach the moon together.