With all the volatility in the market right now, I thought I’d send out this update to let you know our thoughts on what’s going on. We’ve all seen the charts, and some of us are probably feeling quite fearful. But I encourage you to take a moment, zoom out, and look at the macro plays.
Because despite how it feels right now, I can assure you that as a long-term crypto investor, I’ve seen much worse!
If you’ve been in this game long enough, perhaps you have too?
We’ve had the COVID crash
The implosion of Luna
The collapse of FTX
The German government’s Bitcoin sell-off
And even the SEC’s war on crypto
I think it’s fair to say crypto investors have weathered their fair share of storms!
And I get that it feels bad right now. You’re probably staring at your portfolio wondering if this whole thing is falling apart! But I can assure you that this is nothing out of the ordinary. This is just what bullmarkets do.
In fact, there’s a saying in the crypto community.
‘Show me the chart and I will tell you the news’ Â
Yes, it’s been dramatic. Yes, it’s been fast. And yes, it’s tested all of us. But zoom out, take a breath, and let’s break this down together.
The macro madness: what just happened?
Over the past week, we’ve seen significant turbulence following Trump’s trade tariff moves, which include a flat 10% on all imported goods, and even harsher tariffs targeting China. Naturally, China clapped back with a 34% hike on U.S. goods.
Global markets hated it.
The S&P 500 dropped approximately 10.5% in two days, erasing about $5 trillion in market value. The Dow Jones Industrial Average fell around 5.5% in the same period, marking its most significant decline since COVID-19.
The crypto market was not immune to these developments. Bitcoin fell 7%, down to around $77.5K – the lowest it’s been all year. That’s a 28% pullback from its peak at $110K in January. The rest of the crypto market followed suit.
Now, it’s important to note that this was a macro panic – investors moving away from ‘riskier’ assets because of outside pressure from the global economy. Made worse by leveraged traders getting wiped out in a cascading sell-off.
So markets everywhere are hurting.
However, take a look at the difference in sentiment between traditional markets and crypto.
Both markets are sitting in extreme fear – but crypto is handling it better. Traditional markets are deep in panic mode, while crypto sits closer to the top end of the spectrum. Crypto investors are more used to volatility.
And for experienced investors, this is just another day in the land of crypto!
What does the bigger picture tell us?
With all this going on, you might think it’s doom and gloom. However, even in the face of short-term volatility, the macro setup is quietly bullish.
For instance:
Plus more macro positive indicators that I’ll be covering with DWG members in our special 3-day workshop that starts tonight.
But what about the pullback?
There’s no denying markets have dropped, but when we take a look at history, we’re actually doing much better than we have in previous market-moving events.
So as you can see, we’ve been through much, much worse!
This is what a bull market can feel like. They’re emotional, volatile, and designed to shake people out. That’s why I always say, step back and look at the bigger picture.
In other words, corrections are temporary, and opportunities are hiding in plain sight.
So what should you do?
Firstly, don’t panic. Approach this like you should everything on your crypto journey – using logic over emotion. And while there’s no one-size-fits-all answer, here are some options to consider:
Final thoughts
Here’s the secret no one tells you: the best opportunities never feel easy at the time. But when you look back, they are often your most potent and powerful moves. Being a contrarian feels uncomfortable at times, but it can lead to potentially life-changing gains.
I’ll leave you with this – May 2025 marks 8 years of Digital Wealth Group being in the crypto education space. We have experienced and lived through many market-moving events, and held investors’ hands through wild volatility countless times.
Yet we believe more than ever in the power of crypto as a potential wealth-building asset class.
We’ve seen first-hand what this asset class can do. We’re still excited for what’s ahead.
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