Cryptic ball: a truly scary week.
It's the second time we have a Friday the 13th in this newsletter. The first one was last August and there were few reasons to be afraid, as alts were starting to pump in the aftermath of 2021's May to July carnage. But what's left to fear now?
- Following this week's crash, the crypto market finally got some respite, with all tokens bouncing 5% on average. Bitcoin even managed to stay above $30k for most of the day, even if it fell below it once again - albeit not violently.
- Naturally, this was perfectly aligned with the US stock market, given that the S&P 500 rose 2.5% and the Nasdaq nearly 4%. For now, crypto is still highly correlated with these markets and we can only dream with a decoupling.
- And, as anticipated yesterday, stonks bounced because the Fed acted. Or spoke. Some FOMC members reiterated Jerome Powell's statement that 0.75% hikes are not being considered and that the Fed will calm down once inflation peaks.
- However, this doesn't look like a true bottom for the stock market - especially because Jim Cramer, the infamous CNBC host, is shouting the bear market is over. He wants it to be over and so do I. But tech stonks are still "expensive".
- Fortunately, at least for the weekend ahead it does look like we'll have some peace. The past days were so intense that even bears are exhausted and need to rest a bit. Moreover, it seems Terra's downfall hasn't spread to other projects, with Celsius confirming they got all their funds from Anchor before the depeg.
- Lastly, let's keep following BTC, especially around Sunday night. That's the time when bears tend to attack these days, especially if US stock future are negative. Overall, I believe things will be fine but I'm sitting peacefully flat.
Meantime, remember LUNA kept crashing today until it it reached a minimum of $0.000009 and was eventually delisted from major exchanges! While Do Kwan announced a revival plan, don't expect the Terra ecosystem to be back soon.
Chart art: a truly capitulative moment.
Three things: a truly doomful forecast.
- Spencer Noon helps you "go from 0 to 100 on stablecoin designs".
- Arthur Hayes argues BTC and ETH will fall to $20k and $1.3k.
- Galois Capital (remember that Monday we told you they anticipated that UST would lose its peg?) tells the story of the "Sacking of Crypto Carthage".