Revenge of the 90s
3 min read

Revenge of the 90s

Cryptic ball: strawberry swing.

Just like clockwork. As expected, bitcoin found support on the bottom of last month's range - despite record-high inflation in the US. More interestingly, the bounce has been fierce, with bulls recovering $20k! What does that tell us?

  • Firstly, that the impact of high inflation is increasingly priced in. While stocks have been printing higher lows since June, crypto is consolidating this range. Both are potentially good signs that bears will fail to attack this summer.
  • Secondly, today's recovery has been quite spectacular for bitcoin, jumping 8% on the 9.1% CPI print (fine, it dropped by nearly the same amount in the hours before the data was released, but what matters is the speed of the rally!).
  • While we're not out of the woods yet, it's good to see reason prevail in face of this high volatility. In other words, even with the Fed considering raising interest rates by a record full percentage point this July, crypto pumped!
  • That means that after June's impactful high CPI print, which triggered a massive crash in stocks and crypto alike, traders have now hedged their bets and don't care much about how consumer prices fare compared to July 2021.
  • Lastly, this tells us bitcoin is now headed towards $22k, the top of the range, and we need to wait and see how that fight plays out. Remember this is not the time to call a bottom, but to catch nice, predictable swings and trade them!

Oh, and we can't forget that Celsius, one of this space's most popular lenders, has just filed for bankrupcty in NYC! And the market barely flinched, hinting that there's not much expected forced selling coming out of that process!

Chart art: current thing.

Core inflation fading is good. Let's hope it continues that way.

Three things: focus king.

Tweet tip: ironic sting.

As always, funny because it's true.

Meme moment: brisk fling.

Are you in it for the tech?

FV Bank: where to find alpha.

Watch Miles Paschini discussing "Where to Find Alpha" with Caitlin Long, and Stephen Rust.

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