Bitcoin is never down
Cryptic ball: but Facebook, Whatsapp, and Instagram can be.
Did you enjoy the weekend? Bitcoin and ether have mostly been consolidating after Friday's pump, although some few alts managed to extend the gains: mostly Axie Infinity's AXS, on top of announcing a new staking feature; LUNA, following a network upgrade to its Terra blockchain; and, of course, DOGE and SHIBA, after Elon tweeted another cute puppy's pic. This is a good sign of resilience, given that the Nasdaq and the S&P 500 haven't recovered so far - with such dump attributed to investors selling more risky, technology-related stocks. Why?
Note that Europe seems poised for truck driver shortages and that global oil prices have just hit a three-year high! All this will heighten inflation woes, pushing the Fed to kick the money-printing brakes harder - at risk of further crashing stocks. And, until recently, I've warned you about how closely correlated cryptoassets were with equities. Well, if BTC and alts "can keep their head when all about them are losing theirs" then this asset class can truly become an independent Market.
In other words, bitcoin can finally fulfil the narrative that it is a safe haven asset in times of instability and not just a speculative bet. That would allow the remaining cryptoassets to benefit from the profits of BTC hodlers in case the orange coin continues racing towards a new all-time high as I'm expecting it to do so later this month. And, as you can see below, I'm not the only one! What about you?
Chart art: what's your prediction?
Three things: up your knowledge this October.
- You still don't understand Bitcoin? A humble croissant can help you with this great thread explaining the mechanisms behind the original cryptoasset.
- Natan Schneider, an academic, recently argued that blockchain-based governance is limited as it doesn't see beyond economic metrics.
- Vitalik Buterin broadly agrees, but clarifies that "blockchainized should not be equated with financialized". Another must-read!