Bizarre Love Triangle
Cryptic ball: are you feeling that joke?
Elon Musk tried to be funny again. Did you laugh, though? At 1h07am UTC, the world's second richest person tweeted a cryptic meme with a simple description: "#Bitcoin ₿ 💔 ". The orange coin's daily closed hadn't been the strongest, failing to overcome a not so significant resistance from May 26th and 27th. Still, everyone running alerts to go close longs or go short after one of those tweets felt like it was wise to make an easy buck. And indeed it was. The cryptoasset felt 2.5% within five minutes, falling back to the meme triangle and slowly fading up to 7.5% in the session. What now?
On the one hand, remember it's pointless to blame Elon. But even if he was to blame, the fault would lie on everyone taking advantage of a market expectation (i.e. that bitcoin reacts to his tweets), not on the purest troll. And that's just how markets are supposed to work, right? On the other hand, this was just a normal day in crypto. Yes, alts have dipped but they were pumping all week - so nothing changed, in particular Elon's sense of humour. After the dump, he posted another meme mocking those crying about the fall!
Chart art: are you feeling that short?
Market musings: are you feeling hot?
As a state-owned news agency in China just shared, "the general public has the freedom to participate in the trade (of virtual currencies) at their own risks". But it seems many people are not comfortable or even aware of these risks, which is normal in immature markets. Binance, the world's largest spot exchange, has even just released a 'Cooling-off Period' option for its futures platform, as seemingly many of their users were revenge trading, a dangerous, compulsive behaviour.
So, in these choppy times, we again encourage you to focus on research and long-term plays. More interestingly, take the weekend to consider why is that bitcoin's one-year logarithmic returns are strongly correlated with overall market sentiment, at least as defined by Goldman Sachs proprietary indicator - which you can find below. Still, if your risk appetite is low, consider that the current low volume and overall bearish feelings may entice bears to short bitcoin this weekend! Can the Miami 2021 Bitcoin conference save us?
Visual block: are you feeling frisky?
Three things: are you feeling Miami?
- We've already shared the streaming link to Bitcoin 2021 in Miami, but as tomorrow is the last day we recommend you to watch some talks here!
- We've already shared some Solana news, but the startup behind this rival of Ethereum has raised between $300 to $450 million. Check it out.
- We've already shared some Square news, but the fintech led by Twitter's Jack Dorsey is considering making a Bitcoin hardware wallet. This is massive, but what's interesting is that they will make it collaboratively. Learn all about it!
Tweet tip: are you feeling all that fuchsia?
Meme moment: are you feeling that sense of humour?
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