Cryptic ball: penny stocks all over again.
Friday's market update was simple, but on point. Downside risk was indeed experienced, with both FTT and SOL testing previous support levels early this morning. Everything was bouncing nicely again, but then Litecoin came and ruined the party. If you haven't heard by now, some rogue traders created a fake website for Walmart, America's largest retailer, and issued a press release on a well-reputed news network that claimed LTC would be accepted in its +10k stores.
LTC promptly pumped 30% in just 15 minutes, as Crypto Twitter scrambled to investigate the news. After all, Litecoin used to be a popular project, but it would be more likely that a retailer would accept more than just one coin with scarce development activity. And it soon turned out the suspicion was true and this was an elaborate pump-and-dump scheme that even Reuters and CNBC fell prey to. Cryptoassets are fun, but remember this is still the wild west.
Chart art: accumulation all over again.
Market musings: Michael Saylor all over again.
Meanwhile, as also reinforced Friday, we strongly believe the space's fundamentals remain strong. Microstrategy wouldn't have bought another $240 million in bitcoin over the past days if that wasn't the case (that's less than 5% of their BTC, though). However, it seems the SOL pump has faded for now, as warned here too - although a strong close today above $170 could re-ignite the animal spirits.
What else is happening that may influence the week ahead? Bitcoin and ether continue to look weak and they still are the major driver. Overall, we expect the market to be rather uneventful this week, with a probable slow-bleed ahead of us. Keep following bitcoin's funding rate below - which is a proxy of the demand for leveraged futures, i.e. the higher the rate is the more bulls are trying to go long on the futures market, in comparison to the bears - to get directional hints!
Visual block: funding rates all over again.
Three things: design all over again.
- New York Magazine just featured Gary Gensler, Chair of the mighty SEC. Learn why he believes old laws can handle cryptoassets in this must-read.
- Ari David Paul argues we're in a "decoupling cycle" in crypto, where correlations fall, BTC & ETH are less important, and it's all about UX.
- Do you want to work full-time in crypto? Learn how you can start working for a Decentralised Autonomous Organisation with Coopahtroopa's guide.