Low expectations
3 min read

Low expectations

Cryptic ball: it's all about inflation.

As explained yesterday, we had reasons to be concerned. Bitcoin closed the first day of the week between $39k and $40k, only climbing above this meagre support during the Asian trading session. Is the dead cat bounce over or not?

  • Well, the bounce happened on a relatively low volume and that's not good, as it indicates few traders found that price attractive.
  • Looking at the chart below, it's also clear this doesn't look like a bottom and we're likely continuing the dump to around $36k - at least for now.
  • Today we had new US inflation data published. It was high year-on-year, but stable month-on-month, so it was according to the expectations.
  • So, for a couple of hours, it looked like traders were about to buy the dip, but it seems "global growth optimism is at an all-time low" and so the pump faded.

Let's keep watching bitcoin, ether, and the equity markets as our favourite alts won't move until bulls become more confident again. And for that to happen we may need the Fed to signal the markets it cares about the stock market too.

Chart art: it's all about the lack of support.

The negative scenario shared last week is playing out perfectly. I hope we find support above $36k, but if not then bears will likely continue their rein.

Visual block: it's all about the lack of interest.

Courtesy of the evil UBS.

Three things: it's all about focus.

Tweet tip: it's all about adoption.

The fact the market didn't pump much on this news tells us bulls aren't in control.

Meme moment: it's all about stacking.

Keep on accumulating during the dips.

FV Bank: meet us at Crypto Bahamas.

Come and meet our founders, Miles Paschini & Nitin Agarwal, at this exclusive gathering of investors & builders in the blockchain, digital assets and web3 space - hosted by FTX and SALT.

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Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of the guidance in the report will lead to any particular outcome or result.