The longest day of the year
Cryptic ball: but the days will get shorter now.
Bulls got quite confident this summer solstice across all asset classes. BTC and ETH are up 3% and 2%, respectively, whereas SHIBA and DOGE pumped roughly 30% and 20% today. US and European equities are also in the green! What next?
- Again, if the $20k support continues to consolidate, the more likely it is that we saw the potential bottom this past weekend - as uncertainty around the winding off of 3AC's assets and the struggle of Celsius seemingly peaked.
- Moreover, one of the last sources of FUD in this space was connected with a "DeFi" protocol operating on top of Solana - similar to Aave - which tried to become centralised in order to avoid the chaotic unwinding of a position.
- Fortunately, the uproar from the general crypto community forced the protocol - called Solend - to abandon (at least for now) its shoddy plan to take over the account of the whale. That's good, but I wouldn't trust Solend in the future.
- More interestingly, the whale in question finally reached out to the protocol to unwind its "massive position" in an orderly manner - you know, just in case prices crashed a bit more and another liquidation cascade favoured the bears.
- Lastly, FTX's Sam Bankman-Fried just announced they are "injecting $250M" into BlockFi, another major cryptoasset lender to "further bolster their balance sheet" and mitigate the risk they face a liquidity crunch, like Celsius did!
All-in-all, things are looking better by the day but it's too early to have any strong confidence in a swing trade - unless you know what you're doing and are able to monitor your position constantly. After all, the days will get shorter now!
Chart art: but the bears will get greedier now.
Three things: but DOGE didn't hit $1.
- Jeff Dorman argues "the forced selling will stop sooner than you think".
- Nick A. rants about "the most ridiculous moments of this cycle".
- Bobby shaares some more "crypto lessons from this cycle".