Cryptic ball: a bit of news.
It was a rather peaceful weekend in the cryptoshere. Bitcoin hasn't provided the show we expected, but things continue to look great, as the orange coin had its highest weekly close in history and is currently consolidating right below the current all-time high, at roughly $62k. Ether and major alts also look good - at least for now, but that's normal given this year's increase in correlations.
Now, we're less than 24 hours away from the launch of the much expected ProShares Bitcoin ETF (BITO) - which was officially approved shortly after Friday's newsletter was sent. Bakkt, an exchange and custodian with top partnerships, will also start trading in the New York Stock exchange later in the week, which will further attract mainstream attention into bitcoin et al.
Now the key question is when will BTC breaks out above $65k. I feel tomorrow is the day, but am also expecting some volatility associated with the news. One of my favourite characters on Crypto Twitter, Cobain, is featured in today's tweet tip, sharing his view that this market top will take place in February and not December. Cobain is typically right, so this is something to reflect on.
Because even if we crash tomorrow - say, on a sell the news moment to flush out the high greed levels - and bitcoin only finds a new ATH around the end of the month, that would be fine as we'll have plenty of time to party until February. That's not a likely scenario, but you should consider it as this is crypto and the wind can change very fast. Especially after people understand the ProShares ETF is not that transformational yet, and we'll have to wait for more to be listed.
Chart art: a bit of a correlation.
Three things: a bit of a future.
- The Generalist covers the future of NFTs.
- Danny Diekroeger explains the MVRV ratio.
- Matt Hougan explains why spot-based Bitcoin ETFs are better.