Over the past few weeks, we have seen quite a lot of volatility in the crypto market, which has also been seen across other markets, including the stock markets. It’s important to note that these fluctuations are not unusual for cryptocurrency due to its relatively low overall value compared to other asset classes, such as gold or property. Over the past 10 years, the volatility of the major crypto assets has been decreasing, and as the sector matures, it is expected to become more stable over time. 

The recent market movements have a number of causes which include increased interest rates, the cyclical nature of crypto, correlation with tech stocks, and the recent failure of Luna, a top 10 crypto project by market capitalisation (value) which has lost approximately $50B USD. We discuss these reasons and more in our latest Crypto Curious podcast if you’d like additional details. However, it is worth highlighting that the failure of Luna has strengthened our thesis to remain conservative with the assets listed on the Bamboo App. Smaller, more speculative crypto investments outside Bitcoin and Ethereum may not be around in 5, 10 or 20 years as seen by Luna. We, therefore, strive to build features and products that help reduce as many risks as possible through carefully selected assets, diversification and dollar-cost averaging strategies. 

I write today to emphasise that these movements are normal in crypto and that this volatility creates opportunity in the market. The Bamboo users that dollar-cost averaged through the last crypto periods did incredibly well! Moving forward, we hope that Bamboo provides you the tools and resources to help you achieve your goals through simple and effective investing strategies. We understand that these market movements can be challenging–this is the third time we’ve been through these cycles and we truly believe that it’s a healthy element of the ecosystem.

There is an incredible amount of innovation occurring in the crypto sector from NFTs, DeFi, gaming, payments and much more. We are confident that much of the value gained in the sub-industries will flow back to Bitcoin and Ethereum whether it be via network fees or by attracting new market entrants. Therefore, we are extremely optimistic about the growth of the sector and look forward to seeing people find new and exciting use cases for blockchain technology. 

Thanks again for your support and we wish you all the best on your investing journey. For more regular information on the crypto market, we release a weekly podcast to help you navigate the dynamic world of cryptocurrencies. 

Kindly, 

Blake Cassidy
Chief Executive Officer