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.
Three things: focus king.
- Clay Norris shares "50 honest takeaways about his time in VC".
- Cold Blooded Shiller asks "what should we be doing right now" .
- Peter Yang explains "the 2022 crypto credit crisis".