The end of the beginning
Cryptic ball: the end is good.
Yesterday's scheduled newsletter got stuck, so here's the combined update!
The weekend was indeed boring and although Friday I told you I was bullish for the week ahead, I need to clarify that in this slow summer period that means we won't likely dump much while we consolidate forces for the next leg up. Why?
- To begin, bitcoin failed to conquer $25k twice this Sunday. Ether briefly traded above $2k but also failed to clearly establish that level. However, both assets - and many (but not most) alts - clearly printed another higher high.
- As markets ebb and flow within their own trends, now it's time to take a breath and hopefully wait for the higher low. For bitcoin, that would mean bouncing anywhere higher than $23k and ether anywhere higher than $1.75k.
- In the meantime, it seems US stocks are not on holiday as the major indexes keep pushing higher without the apparent loss of steam we're seeing in the cryptoshere. If that's the case, then cryptoassets can continue upwards.
- Otherwise, this may be a sign that traders fear that US central bankers will share bad news during next week's Jackson Hole symposium. Or that the Fed will reveal something eerie in the FOMC's meeting minutes this Wednesday.
- Fortunately, while this Tuesday morning US stocks looked like they were going to dump a bit, strong earnings from Walmart and other retail giants inspired traders to keep on buying - even if the Nasdaq is lagging a bit.
And we can't forget things just move slower than average in August. The industry used to call this a seasonal affective disorder, even before crypto was correlated to equities. So just sit back and wait for tomorrow's meeting minutes!
Chart art: capitulation is good.
Visua block: transparency is good.
Three things: the circle is good.
- John Authers argues we're at the "end of the beginning of this war on inflation".
- Jacek Czarnecki explains "The Real Legal Risks" surrounding MakerDAO.
- Sam Bankman-Fried explains "the financial circle-jerk".
Tweet tip: the sidelines are good.
Meme moment: the lack of change is good.
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