What to do after a Tornado?
Cryptic ball: pace yourself.
The weekend is here and ether ended Friday with an attempt to break out above the symbolical $2k level, while bitcoin failed to break $25k again. Still, I remain bullish for the week ahead, even if the weekend may hopefully be boring. Why?
- The peak inflation narrative is gaining steam, as in July prices slightly decreased in comparison to June. While this was a minor change, asset prices are driven by hope and fear, and until inflation picks up hope will win.
- Piggybacking on top of this momentum, US equities ended Friday on a very high note, closing the fourth straight week of gains. The S&P 500 is even touching a key former support level, now turned resistance!
- If it rises above it this August, it could provide even further relief to risk assets during the rest of the year. But remember not all tech stonks or crypto alts have another bullish narrative, like Ethereum's Merge, to keep them going for long.
- As today's tweet tip warns, bulls are getting quite excited. I'm hoping that the November midterm elections in the US can provide some good news for the market, as bulls aren't the biggest fans of the Democrat's economic policies.
- Until then, a lot can happen and we'll get more clues during this month's Jackson Hole central banksters symposium and in September's FOMC meeting. Before those, I at least expect ETH and related alts to continue pumping.
I'll be back Monday to dive deeper on the aftermath of the Tornado Cash ban. Many are reporting being banned from using various DeFi tools (or at least their popular front-ends) after having been dusted with proceeds from Tornado!
Chart art: share first aid.
Three things: check the TV.
- Hasu shares his great take on a likely Ethereum PoW fork.
- Matti Gagliardi explains what is "social web3" and what it can become.
- Zaheer shares some "thoughts on trading, investing, and being long term oriented".