Don't lose the plot
4 min read

Don't lose the plot

B21 Crypto. We help you stomach cryptoassets.

Cryptic ball: the famous flight-to-safety.

Not much has changed in crypto markets since yesterday, with bitcoin's higher low consolidation still playing out, at least for the time being (but keep following the charts as bears are trying to push price down a bit more). Meanwhile, ether and major alts continue to suffer more, as most eyes are still directed at the original cryptoasset. That's normal after a generalised dump. After all, investors feel more confident first gaining exposure to assets deemed safer - and bitcoin earns that label in this space - and only later dab into more risky ventures, like DeFi.

This is further compounded by all the attention bitcoin has been getting. From Microstrategy's macro bet on the orange coin to the Bitcoinification of El Salvador and other countries, with Panama potentially joining the group of (for now) small countries with lawmakers actively discussing how to become leaders of the token economy, without forgetting Taproot and the narrative that BTC will be a good hedge against the supposedly temporary post-pandemic inflation woes. So, if you're underwater on your alts, prepare to remain like that for a while longer.

Chart art: the famous dot plot.

Will the global asset bubble burst in 2023 once cheap Fed-fuelled money ends?

Market musings: the famous FOMC forecasts.

Yesterday's Federal Reserve meeting brought some volatility to the traditional stock market. But, in the end, its chair, Jerome Powell, explained that potential interest rate hikes in 2023 are still uncertain. Why? The Fed's monetary policy is dictated by twelve members, who composed the FOMC, or Federal Open Market Committee. In the meeting, it was clear some members now expect the first hikes to happen in 2023, but that depends on how the US economy fares until then.

The outlook is good because at least until 2023 we can expect interest rates to stay near zero, to promote economic recovery. Which, in turn, is good for all kinds of markets. Anyway, back to crypto, this only matters as a crash in equities or in other asset classes could quickly spiral to bitcoin et al. But that's all a bit long-term. For now, consider today's visual block, which shows net changes in cryptoassets deposited at exchanges. An increase hints at investors trying to sell, and we are finally seeing a decrease since early May, which hints at accumulation.

Visual block: the famous can't sell outside an exchange.

Click on the image to follow the live chart of supply held at exchanges at Glassnode.

Three things: the famous poorly-designed tokenomics.

Tweet tip: the famous future you're learning about.

Kyle Davis is one of the few multibillion dollar asset managers in crypto.

Meme moment: the famous cry for regulation.

Mark Cuban lost roughly $75k providing liquidity to TITAN.

The Desi Crypto Show: learn more about Near Protocol.

Curious about environmentally-friendly blockchains? Check our latest interview!

New news: USDC now available on our app.

Get started: download the B21 Crypto app!

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