The crossword puzzle
4 min read

The crossword puzzle

B21 Crypto. We help you stomach cryptoassets.

Cryptic ball: rhymes with iceberg (9).

So, did you think bitcoin would just continue climbing like there was no tomorrow after the gains of the last couple of days? Naturally, that wasn't the case and the total cryptoasset market depreciated 1.6% over the past day, with bitcoin remaining slightly more neutral than the average token. As we explained last May, we're still in the crypto doldrums, and not much is going to happen after what's considered a massive pump in any kind of market. Why?

To begin, Kraken's OTC desk reported heavy selling after whales and funds (who typically use over-the-counter trading services to buy and sell on their behalf) realised those 20% gains achieved in just two days. Then, next Friday the 18th is when a possible bitcoin "death cross" may take place, which is making many investors anxious as even Bloomberg is covering the topic. While this trading pattern implies nothing else other than that a given asset is losing momentum, unfortunately many people are influenced by it. Should you be worried?

Chart art: don't short a "____" market (4).

Click on the image to follow bitcoin shorts on Bitfinex over the weekend. Let's squeeze them!

Market musings: that time of the year when crypto is stale (5).

Well, not all is lost. If you need some hope going into the weekend, Pete Humiston, head of Kraken Intelligence, reminds us of the case of August 2013, when bitcoin was also in a multi-year bull market. After appreciating 25x in six months, bitcoin fell 75% between April and July of that year. An impending death cross was also scaring many traders away. But, in August, bitcoin started pumping before the moving averages crossed, and bitcoin went on pumping 19x until December!

Then, it crashed again in what was the beginning of a two-years long bear market, with bitcoin taking three years before making a new all-time high. However, our take is that we won't see a similar bounce now, as the situation is quite different. This is not to say we'll see a dump too. As you should know by now, we agree with Pete that it's important to plan for the worse. It's just that this death cross narrative is not as important after a big crash, which already happened!

Visual block: where we are in the market cycle (4,4).

This is why we think we're still in the beginning of the bull market. Click on the image for more.

Three things: what the latest Bitcoin war was and wasn't (5).

  • Have you still not figured out DeFi? Check this great DeFi Policy Maker Toolkit developed by the World Economic Forum and Wharton Blockchain.
  • Have you still not figured out why Michael Saylor is raising $500 million to buy more bitcoin for Microstrategy? Arthur Hayes explains that and more!
  • Have you still not figured out what Taproot is? Check out this great explainer of the Bitcoin most important update since 2017, which will be locked in today.

Tweet tip: it's not a bubble, it's an "________" (8).

Frank is one of the best reporters in the cryptoasset space! Give him a follow.

Meme moment: what the future of finance will be (13).

Consider researching about dollar cost averaging over the weekend if this is you. And hit reply to this email with the answer to these "crosswords". The first correct answer will be able to chose a topic for us to cover in a newsletter next week!

The Desi Crypto Show: learn more about SushiSwap.

Our latest episode interviews two members from the SushiSwap team. Check it out!

Special announcement: coming next week.

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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.