Times like these
3 min read

Times like these

Cryptic ball: i'm the one that shorts away.

I've been telling times like these are full of chop. Last afternoon, in US hours, bitcoin and the myriad of alts which follow it pumped some 5% again, cancelling Monday's "Marge-induced" dip. Is this bullish or can one expect further fear?

  • Overall, it seems we're trading in a new range. While May it was all about $28.5k to $30.5k, now the lower end remains but the corn is only finding sellers between $31k and $32k. It may sound like a small difference, but the looser the range the safer it is - as tight trading implies a lack of interest.
  • Then, even if the correlation between crypto and equities is weakening we can't forget it is still quite high. Yesterday's move followed a pump by the major US indices, SPX and Nasdaq, so there's not much to do other than following all markets and trying to catch moves in one right after they start in another.
  • And, talking about such moves, while I remain convinced Q3 will show us true relief, we can't also forget that the world is worried about declining economic growth and rising inflation - i.e. stagflation. The IMF rang the bell about this yesterday so let's see how this new angle of the same old narrative unfolds.

Lastly, note that Puru Saxena - a TradFi trader I recommend following and who nailed December's top - has been arguing the current relief rally is coming to an end and we're about to begin the next leg down. Falling oil stocks will be the sign but let's keep an eye on this Friday's CPI data. It can still come out hot.

Chart art: burning off and on.

Europe is the only region not shorting crypto these days. A true hero! In any case, this chart shows you how strongly crypto is still correlated to US stocks.

Three things: do I stay or run away.

Tweet tip: i'm a one-way motorway.

Ethereum's Merge is here but it won't magically pump ether in the short-term.

Meme moment: it's times like these you learn to live again.

Buy in the lows, sell in the highs. It's that easy and that difficult. Just look around you!

FV Bank: i'm a street light shining.

Miles Paschini, co-founder and CEO of FV Bank, will be speaking at the Grit Daily House Media Stage, the official side event of Consensus, on a panel about "Where to Find Alpha in 2022" with Caitlin Long and Stefan Rust.

Get started: download the B21 Crypto app!

Subscribe to our newsletter
Follow us on Twitter @b21official
Follow us on Twitter
Join our Telegram group
Find us on Instagram
Watch us on Youtube
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 the guidance in the report will lead to any particular outcome or result.