About that Goethe
4 min read

About that Goethe

B21 Crypto. We help you stomach cryptoassets.

Cryptic ball: "to think is easy, to act is hard".

Many felt a scare over yesterday's daily close, as ether flash dumped nearly 9% in just 15 minutes, causing the rest of the crypto market to skip a beat. The leading alternative cryptoasset has recovered to that level, but it's still 2% below its recent ATH of $4.2k. Meanwhile, bitcoin also fell bit, and it's also 2% down over the past 24 hours. This has lead many analysts to call for this market to dump more.

Is that right? We don't agree, at least for now. Why? On the one hand, ETHBTC reached a key resistance - as you can see below - which prompted many to take profits. On the other hand, bitcoin is safely moving sideways while ether and alts are continuing to pump. This can last for some months and, in between, aggressive dips typically happen to reset funding rates (even though funding remains high for now, which warrants some reflection). Meanwhile, note the target timeline for this leg to pop is sometime around July 14th - when Ethereum's highly anticipated London hardfork is implemented. This update will finally bring gas fees down to sane levels, which is good news. But what do you do with rumours and news?

Chart art: "enjoy when you can, and endure when you must".

ETHBTC shows how wild the last leg of the 2017 bull market was. Is it a good mirror for 2021?
While we agree ETH is overbought, it can still pump a bit more before a major summer crash.

Market musings: "a person hears only what they understand".

Meanwhile, the shiba-related hype continues. After millions were made with dozens or a few hundred dollars, everyone and their mother are trying to cash-in on the canine ride. As talked yesterday, one really needs to be aware of rug pull risks and other smart contract-related scams. But there's more to this which can affect the wider ecosystem. As more and more people make millions overnight, this puts increased selling pressure on BTC and ETH, which impact the wider market.

Furthermore, the number of bitcoin whales - holders of cryptoasset wallets with more than 10k bitcoins - has fallen to a 5-month low. This could mean these millionaires are either sending their assets to exchanges so they can sell for a stablecoin in anticipation of a major crash, or are using their holdings to buy alts. Lastly, we're seeing more signs of euphoria as Coinbase has overthrown TikTok to steal the #1 spot on the US App store. Guess when it had reached that spot before?

Visual block: "we must always change, rejuvenate ourselves".

Alas, even institutions are taking profits.
Still, cryptoasset inflows and diminished OTC desks balance imply strong demand. Hope so!

Three things: "by seeking and blundering we learn".

Tweet tip: "everything is hard before it is easy".

Ryan tends to be right, we just need to calm down for a couple of weeks.

Meme moment: "behaviour is a mirror that shows our image".

Click on the image to check some of the theories behind the weird announcement.

COVID Crypto Relief Fund: made with help from B21.

Click on the image to learn more about this transparent community initiative. Even Vitalik Buterin, Ethereum's founder has donated!

Email eagerness: add us as a contact.

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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.