May was a brutal month for the cryptocurrency asset class. From a macro perspective, the Bitcoin (BTC) price drop comes as no real surprise. An overheated economy fueled by cheap money is showing clear signs of a much-needed reset. The S&P 500 and Nasdaq Composite posted significant losses in May amid geopolitical uncertainties, supply chain issues and, most importantly, rate hikes to combat inflation not seen in decades.
During the pandemic, money was freely distributed to stimulate consumer spending, and the Federal Reserve System (FED) printed billions of dollars to get stimulus packages off the ground. The effects are now being felt; Basic economics dictates that as money is printed and total supply increases, the value of each dollar depreciates. The Fed, led by Jerome Powell, is raising interest rates to counter inflation. With higher borrowing costs, demand for goods and services will naturally fall, eventually reducing inflation. But this time will be painful for both consumers and businesses.
Bitcoin (BTC)
At the beginning of May, Bitcoin was trading at $38,000 and it is currently trading at $29,000 with no sign of a rally anytime soon. The events of May were widely understood as the beginning of a sustained bear market. Crypto is classified as a high-risk asset and is therefore the first thing to sell during times of market uncertainty.
Bitcoin will continue to trade between $28,000 and $31,000 over the following months. With the collapse of TerraUSD (UST), the stablecoin, in early May, the Luna Foundation flooded the market with its bitcoin reserves in an unsuccessful attempt to stabilize the peg, further pushing bitcoin’s price lower.
Bitcoin has a lot of work to do and remains solid below the 200-day moving average with no hope of exciting price action anytime soon.
Gnox (GNOX)
gnox, a new protocol that will be launched on the Binance Smart Chain (BSC) in Q2 2022 and is currently in the pre-sale phase, might just be what investors are looking for to weather the bear market. The Gnox token distributes rewards to token holders in stablecoins, and everyone knows that during a bear market, stablecoins are every crypto investor’s best friend. Stablecoins provide a stable store of value that allows investors to preserve the value of their capital until they see a buying opportunity.
How does Gnox distribute stable coins?
Gnox is the first reflection token with a treasury designed specifically for its investors. Gnox uses a buy and sell tax and continuously builds a treasury fund to be used in DeFi yield businesses like yield farming or lending protocols. Every 30 days, Gnox distributes the revenue generated by the treasury in stablecoins to token holders in proportion to the number of tokens they own. Gnox is the first protocol to offer yield farming as a service, and with the monthly distribution of stablecoins to its investors, will it offer investors a chance to beat the bear market?
Learn more here:-
Participate in the pre-sale: https://presale.gnox.io/register
Website: https://gnox.io
Telegram: https://t.me/gnoxfinancial
Discord: https://discord.com/invite/mnWbweQRJB
Twitter: https://twitter.com/gnox_io
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