Cryptic ball: it's Solanaland, indeed.
It's an indecisive end of August for bitcoin and ether, with another test of key moving averages and overall low volume. Fortunately, most alts found this consolidation bullish enough to continue pumping! Ethereum killers SOL and LUNA are finding new all-time highs today, and even Celo pumped 90% over the past hours, after announcing a $100 million DeFi fund around Ethereum!
So, what about tomorrow's monthly close? Our view is the same as last week: bitcoin needs to hold $47k or it will test $44k and drag alts with it. Fortunately, it seems both BTC and ETH are just consolidating before the next bullish leg, so are assigning a higher probability to the upside scenario - which would be further confirmed once ether breaks $3.4k. Meanwhile, enjoy the summer of SOL, one of the few projects we were comfortable recommending you back in April!
Chart art: you know what happens in vertical pumps.
Market musings: it's boring, indeed.
With bitcoin so stale, it's likely it will take a while for us to see a major institution announcing it has adopted the original cryptoasset. Only such a piece of news could remind institutional managers that the holidays are over and they need to follow Michael Saylor's Microstrategy. Before that, it will continue to be time to try not wasting much gas minting the wrong NFTs and to avoid being rug pulled.
One of our favourite analysts, Ecoinometrics, conveniently provides updates about that topic on his Twitter account, and the chart below helps understand why traditional companies and funds may want exposure to crypto's first. While small retail traders with $500 in their portfolio may feel like BTC is too boring for them, you must remember only the leader has enough liquidity for serious players to get in and out without a splash. And $50k for one bitcoin is just the beginning.
Visual block: you know what happens when adoption grows.
Three things: it's radical, indeed.
- Joe McCann decodes the power of "the next version of the internet".
- Ecoinometrics further explains why you should be fine with a boring bitcoin.
- Su Zhu, Hasu and Jordi Alexander outline "the game theory of crypto".