Don't let it snap
3 min read

Don't let it snap

Cryptic ball: FOMC is back.

The weekend is here and the crypto market is moving in interesting ways. While ether reached a new local high this Friday, bitcoin is potentially forming a bullish pennant - which will remain valid as long as $22.5k is defended. What's next?

  • Like bitcoin, the major stock indexes had a slight pullback at this end of the week, but still closed with a nice gain since Monday. Social media stocks were the noteworthy exception, as Snapchat's 39% crash inspired a web2 carnage.
  • Now, the ETH trade has been all the rage, with this scaling narrative providing some additional relief on top of the broad market bounce. But, like before, the real hype around the "Merge" can often disappoint after quick gains like these.
  • While I'm confident about the long-term impact of that upgrade - and of the overall evolution of the crypto space - and while I believe August is going to be a great month for ETH, it's key to remind you of next week's FOMC meeting.
  • Next Thursday, the 28th, the Fed will hold a press conference detailing its policy updates. I expect the currently priced-in 75bps hike will be announced, but until then I'm positive more macro rumours will hurt the market.
  • To clarify, I'm expecting either more sideways trading until Thursday or even some dips, which can be nice buying opportunities provided that the Fed doesn't ruin the party with some unexpected news during the conference.

Lastly, and as you can see in today's chart art, it's clear we're at a make-or-break point. While bears still argue stonks haven't dumped enough, I'm starting to feel that crypto can easily decouple from equities in case that happens!

Chart art: key levels are back.

The 200-week moving average is a key reference for most assets, including bitcoin.
Capitulation and anger are clearly behind us, but we still need some depression and disbelief.

Three things: 3AC and AH are back.

Tweet tip: delays are back.

Joking, it looks like things are on track. Nothing like a bear market for devs to ship!

Meme moment: OGs are back.

Did they ever leave though?

FV Bank: the future of settlement.

Learn more about the growth of the crypto payments infrastructure.

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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.