Remember 31st October, 2008
Cryptic ball: two scenarios.
Another exciting day in the cryptoshere. Fortunately, bitcoin's 5% dip in just 2 minutes, odd for a trillion-dollar asset class, didn't hurt the market. And, as anticipated, SHIB has calmed down and is ranging sideways, which opened the door for Layer-1 blockchains to shine. Its leader, Ethereum, clearly doesn't want to fall behind in the Battle of the Protocols - with ether finally printing an all-time high for the first time since last May, above $4.4k. Time to party?
Well, the response has been rather muted, at least compared to the typical pumps that occur after such a milestone. Alas, it even resembles bitcoin's pale breakout one week ago. At least the bounce has been convincing enough to make me feel like bears don't have the energy to dump the market lower. This means I feel safer going to the weekend without the hedges previously referred - but, note, one must always be ready to quickly react if something spooky happens. What next?
If ETH succeeds in avoiding BTC's consolidation, and some popular macro investors think it will, the next level to aim is $6k (and then the sky is the limit, or maybe Ethereum's high fees will be). But we need the orange coin to confidently break out of the bullish flag that was charted here this week and that you can see below - even if it doesn't go to $100k straight away. Conversely, if it falls back into the range, then it will be tough for the rest of the market to rise in tandem over the next few days. If that's the case, maybe canine tokens will return earlier than expected, i.e. next week instead of just in December. Enjoy Halloween!
Chart art: two channels.
Three things: two visions.
- Arthur Hayes explains why these Bitcoin ETFs are not that evil.
- Marc Zuckerberg is interviewed on his metaverse vision.
- Kain tells us the story of DeFi and anticipates its future.