Nothing going on
Cryptic ball: a lot going on.
Both bitcoin and the overall crypto market are trading at the same point they were 24 hours ago. But many were scared when BTC tested $46.5k earlier today and dragged most alts down with it. For now, there was strong demand at that level and the bounce was convincing. But I feel we'll dump one more time until extreme liquidations hit the tape and funding rates turn negative on Binance - one of the few exchanges which haven't experienced negative funding this month (on BTC).
My bet is that things will get particularly eerie as New Year's eve approaches, as Friday will see a particularly high volume of options expiring and many are anticipating their rollover to be quite volatile. But after that we'll be fine - as long as BTC holds the $40k to $42k support area in case the wild swing is to the downside. As Raol Paul recently discussed, "there is a lot going on in the digital asset space but also nothing going on and that is the problem". Think long-term and have a plan for the next few days, even if that's sitting in some stablecoin!
Chart art: volatility going on.
Visual block: institutions going on.
Three things: crystal balls going on.
- Sam Bankman-Fried argues the crypto industry's roadmap should be focused on scaling blockchains to millions of transfers per second.
- Elias Simos shared the 69 most interesting charts in crypto for 2021.
- Richard Chen shares his 2021 recap and 2022 predictions.