Cryptic ball: Jerome is back.
This has been a fairly smooth weekend, with bitcoin and most alts either trading sideways, constrained by the past month's range, or facing resistances that halted their spectacular, 25% bounces since Thursday's lows. The most notable exception is AVAX, which just hit a new ATH yesterday, with Elrond's EGLD and Cosmos' ATOM following suit. Meanwhile, the S&P 500 also hit a new all-time high today, on news that President Biden had nominated Jerome Powell for a second term.
The choice to maintain the current chair of the US Fed was also seen as bullish by bitcoin bulls, who pumped the orange coin up to 5% in less than 20 minutes after the announcement. This renewed optimism may turn into the strength we needed to reignite the animal spirits. Otherwise, this last week and a half of November may prove to be complicated. Overall, with the current activity on alts, I feel like the show is far from over - even if the final pump may take a while, especially with some downside volatility associated with Thanksgiving ahead of us.
Meanwhile, I've also heard some interesting feedback from our readers, that I'm aggregating into two groups. One set of views argued retail investors started arriving this summer and not only they haven't sold yet, but they also bought the dip with new funds. On the other hand, another group believes the inflow of retail investors isn't sufficient - at least yet. And as these are overly focused on meme coins, it is possible we will experience a very different top than the ones we faced before - at least in what bitcoin is concerned. Note both groups still believe we're in a bull market! I'll reflect on this and expand my views over the next few days!
Chart art: fear is back.
Three things: Thanksgiving is back.
- Chris Dixon argues Ethereum killers shouldn't compete on block space.
- Linda Xie provides a "beginner’s guide to social tokens".
- Joe Berkowitz explains how "crypto talk could ruin Thanksgiving dinner" - and what you can do to navigate that risk.