Inherently choppy, hyper boring market
5 min read

Inherently choppy, hyper boring market

B21 Crypto. We help you stomach cryptoassets.

Cryptic ball: don't take the worst and call it the whole.

Are you feeling the fear? So far, it's true that the pessimists are winning, with ether's weakness hinting at a (very) slow bleed across the board. For now, ETH followed bitcoin's bounce earlier today around $31k, recovering from a test of $1,850. But the show put on by the bulls looks quite feeble, so your correspondent expects the torture to last over the weekend, even if it won't hurt that much.

Why? Because not only volume has been falling for weeks, a sign of the summer, but OTC desks are also reporting practically no activity, as traders enjoy the holidays. That's why all the current bearish narratives don't make sense. Take the example of Jackson Palmer, the disillusioned creator of Dogecoin, who again confirmed he hates the cryptosphere of influence due to its "inherently right-wing, hyper-capitalistic technology", so he won't ever return to this space.

This prompted many to agree with developer, fuelling the nearly universal negative sentiment. But periods where an asset just trends sideways are perfect for both bulls and bears to justify their bias with any story that fits their point of view. So, for the next days you just need to watch out if bitcoin breaks down the current range or not. Just note that it can sweep the current low just to hit the stop losses placed by many traders right around $28.5k and then quickly bounce back-up!

Chart art: except if you're looking at funding rates.

BitMEX, the exchange in yellow, used to drive prices. While that's not the case, such an extreme departure of its funding rate relative to that of other exchanges could mean some bears are trying to use that platform to scare the rest of the market. Will they be squeezed?

Market musings: don't take profits and call yourself a whale.

The above means that you shouldn't wait for bitcoin to fall below $30k to flip bear. If you can't handle the lull then just get away from the market until a clear trend is established. After all, the best time to flip bear is when everyone is euphoric, not when fear reigns free. Conversely, if you really believe the end is near then you should put your money where your chart is instead of waiting to short support.

Meanwhile, it's important to look at the rest of the market. Several alts are pumping and attracting many to that field. AXS, the governance token behind an NFT-based online universe focused on digital pets, even pulled a 10x over the past month. That's great, and you can find more if you follow these tips, but remember that if you don't take profits you may be stuck with that bag for the long-term.

And, overall, it's good to think long-term. Look at the below chart modelling Ethereum's supply over the past and next years. The anticipated reduction in the amount of ether available is what's driving many to believe it can flip BTC in market value one day. Whether or not that's true, typically the best cryptoasset investments are usually those which you can bear to hold on for some years. But remember that many of those can be worthless if you don't take profits too.

Visual block: except if you're looking at a really solid project.

The pink line shows how Ethereum's supply inflation will soon end, causing the circulating supply will start falling from 2022 onwards, following Ethereum 2.0's adoption.

Three things: don't take the takes and cut to the chase.

  • Evan Greer offered the best rebuke of Jackson Palmer's criticism of the cryptoasset ecosystem. But Brian Armstrong's reply is also worth it.
  • Arthur Hayes offered the best take on the future of stablecoins, including Tether, and how CBDCs will come to destroy commercial banks. A must!
  • Token Terminal offered the best take "on what crypto and blockchain is all about". Learn more about the internet-native economy with this great thesis.

Tweet tip: except if you're summarising narratives.

To be fair, Dan replied that China's demand is still there, as it has always been. It's just a matter of time before they are able to find a way to get back to their favourite speculative asset.

Meme moment: don't trade the chop and expect it to be easy.

Except if you know what you're doing or if you're a bot.

Last days to meme and win $100: it's all about B-21 and B21.

This campaign ends Sunday, July 18th. The top 5 memes will win $100 each, for a total reward pool of $500! Click on the image for all the details.

Get started: download the B21 Crypto app!

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Legal Notice
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 guidance in the report will lead to any particular outcome or result.