Market Reset Before Moon or Just Another Downtrend?

With legacy markets puking this week, crypto has likewise been a bloodbath. With lots of blood already shed, however, the question looms large: Is this a much-needed market reset before we get back to our programming of up-only, or is this just the sign of another clear downtrend to take us further into the abyss?

Only time will tell, but there's some good evidence on both sides. First, the markets may have fully priced in the effects of tariffs as we all reimagine our global economy and rethink the business models that have proven most viable for the last fifty years. There is much to be optimistic about in crypto; we have a very pro-crypto administration in the United States. The President has announced strategic Bitcoin and crypto reserves.

On the other hand, the tariff war may just be heating up. China announced new tariffs in response to US tariffs, and the President responded that the US may turn around and impose a massive 50 percent tariff of its own. So carnage in legacy markets, crypto markets, and crypto supply chains may just be kicking off.

Still, markets are up significantly after a local bottom on Monday. In a world of pessimists, I choose to be an optimist. I think crypto will slowly recover from here; there's too much upside potential and many positive developments. If we get some really bad news to cause a crash, we'll all likely have more important things to worry about.