Cryptic ball: crypto is like a ride.
Another mildly interesting day in this boring, but pleasant ride up the crypto carousel. Bitcoin finally touched $58k, a price unseen since May 12th - just before a 20% crash in a matter of hours, which was the first leg of that cold end of spring. And, more interestingly, ether has started pumping in spite of bitcoin's rise. Does this invalidate the traditional relationship that I brought back last week?
Not so. Because bitcoin has hovering around $55k since October 6th. This sideways movement enticed alt traders, with the entire market up +3% today. Alas, Axie's AXS rose +16% and most top tokens pumped roughly 8%, which was ether's relative rise. The runner-up blockchain's token is now standing at $3.8k, a key level that, if broken, could lead ETH to test new all-time highs together with the orange coin. And, then, invalidate the "BTC up, alts down" relationship.
But all that is fortune-telling and you should instead be focused on having a plan for each scenario. If both pump together, it's likely that the ride up will be more sustainable - and perhaps even last all of 2022 - as there's enough fresh capital to raise all boats. If the old cycle resumes, it's likely whales are just moving chips around and this will be a quick leg up (first with BTC, then with alts), just like what happened in the last quarter of 2013 and, in some ways, also in 2017!
Chart art: exchanges are an amusement park.
Three things: that's how powerful our minds are.
- a16z kindly shared their "Agenda for the Future of the Internet".
- Make sure you also check their "How to Win the Future" deck!
- Lastly, if you feel it's tough to find the next 100x in crypto, that's because it is. Ari David Paul argues the "easy money" now lies in "building". Must-read.