MARKET:
The market delivered another butt clenching episode when $BTC dipped below $32k and $ETH below $1,900. Many experienced analysts believe the many rounds of China and ESG FUD, lack of capital inflows, and retail leaving is bearish for price in the near term, and Delphi Digital has called for a $25k BTC price floor to end this drawdown/correction. Technical traders have observed a large head and shoulders price formation and a “Death Cross” (when the 50d moving average crosses over the 200d moving average), which both typically lead to more declines.
On chain metrics are much rosier as they show OG BTC holders are now accumulating, while short-term speculators are leaving.
ETH continues to leave exchanges for DeFi, staking, and cold storage ahead of major software upgrades (London - EIP-1559 and the merge to Proof of Stake). This is very bullish for a supply crunch and explosive volatility:
Bipartisan Infrastructure Bill moving through congress - $3.5t
This should be another catalyst for more crypto inflows assuming the Fed doesn’t raise rates.
NEWS:
DOW and S&P500 launch Cryptocurrency index
$COIN may be undervalued ahead of Q2 earnings report
Massive SPAC deal for Circle, the firm responsible for the USDC stablecoin
Bullish, a centralized crypto exchange, is going public via SPAC, but why? They are a relatively unknown player without a track record. This could be a telltale sign of where we are in crypto mania and how much money is available (massive inflation) for investors.
Brazil has approved an Ethereum ETF
Apple co-founder, Steve Wozniak, says Bitcoin is a miracle and better than gold
DeFi exploit - Chainswap loses $8m
33% growth in DeFi in 2.5 months!
NFTs are exploding:
Mike Tyson has a Cool Cats NFT as his Twitter Avatar
Softbank leads $532m funding of NFT platform, SoRare
Valued at $3.8b. NFTs are for real!
REGULATORY:
Elizabeth Warren is demanding regulatory clarity from the SEC...or else.
Another Chinese province shuts down Bitcoin mining
POD O’ THE WEEK:
If you haven’t heard of Arthur Cheung, he’s one of the sharpest and most successful DeFi investors and creators ever. He spoke on Bankless this week about his investment approach, DeFi thesis, and revealed some alpha. I share a lot of his thoughts and apply many of his processes to my own investments!