December 15, 2021

All Eyes on the Fed

Introduction

If you checked your portfolio yesterday, you must have been quite shocked…

Joe Weisenthal @TheStalwart

Decent bounce here ahead of the Fed decision coinmarketcap.com

Did you manage to nail the top?

imhiring.eth @mikedemarais

sold the top at $28,837,938,873,738,637

Jokes aside, obviously, the major data glitch CoinMarketCap, Coinbase, Binance, and Co. experienced yesterday prompted a wave of memes on Crypto Twitter. While no major damage was caused, it was indeed a good reminder that the crypto space and its infrastructure are still nascent and full of bugs and risks...

What are we looking at today? Of course, all eyes are on Jerome Powell and the FOMC meeting, which has kept the markets in suspense for many days now... While the consensus expectation seems to be a “buy the news” event, be prepared for some rollercoaster price action.

As macro expert Darius Dale puts it: “Investors are ill-positioned for a probable US Dollar short squeeze amid growing talk of a Santa Claus rally in/across risk assets.” 💥

Ninja @Ninjascalp

gm take it easy on us today Powell $BTC

Here are some more takes on this pivotal day for all asset markets:

Sven Henrich @NorthmanTrader

This is the first time the Fed will be tapering QE with a running bear market in stocks already under way. This should be interesting.

Sven Henrich @NorthmanTrader

Watch Powell try to sprinkle some dovish fairy dust on his announcement tomorrow. He doesn't want another December 2018.

Pentoshi 🔺satsdarts lover @Pentosh1

Thoughts going into FOMC Markets are forward looking. Crypto even more so bc it's not under anyone's control. It's the only free market left in the world The Fed is still adding to it's balance sheet but at a decreased rate. Smart money prepped last month. Slow money this week

Pentoshi 🔺satsdarts lover @Pentosh1

That's still less buy pressure than we've been seeing, so someone has to pick up the slack. They have been giving warning signs to prepare the market as opposed to shock it and let a little air out of the bubble. I don't expect a rate rise in the next 3 months personally

Pentoshi 🔺satsdarts lover @Pentosh1

We should see prices start to stagnate a little when we see the purchasing start to decrease. It took the power of the Fed to push these markets vertical. You remove any amount of that support how much do markets keep going up at this clip?

Pentoshi 🔺satsdarts lover @Pentosh1

I wrote about this in April here: So next time you cheer on inflation. Remember it's only good in moderation like anything in life. getrevue.co/profile/pentos…

Continued Mainstream Crypto Adoption…

• In the end, what crypto needs to grow sustainably, both prize-wise and fundamentally, is continued adoption. That’s the reason why we keep highlighting major crypto adoption stories – even if they don’t have a short-term impact on prices.

Ben Strack @strack_ben

Crypto continues to infiltrate the sports world. As part of the deal, the Warriors will offer exclusive collectibles on @ftx_us’s NFT platform.

blockworks.coFTX US partners with Golden State Warriors - BlockworksThe Golden State Warriors will offer collectibles on the FTX NFT Platform, while the FTX logo will be displayed on the team’s virtual court.

Blockworks @Blockworks_

Wall Street is interested in crypto custody. Goldman Sachs, KKR and and Andreessen Horowitz invested in @Anchorage's $350M round. Latest by @jacqmelinek

blockworks.coGoldman Sachs, KKR, a16z Invest $350M in Anchorage Digital - Blockworks“Crypto is exciting to Wall Street, and the names attached to this round speak to that trust,” Diogo Mónica, president and co-founder of Anchorage, told Blockworks.

… While the Legacy System Feels Increasingly Threatened

• At the same time, the famous saying “First they ignore you, then they laugh at you, then they fight you, then you win” is playing out before our eyes. We’re likely somewhere in the later stages…

BBC News (World) @BBCWorld

Bank of England warns on crypto-currency risks

bbc.inBank of England warns on crypto-currency risksDeputy governor Sir Jon Cunliffe says assets such as Bitcoin could affect the whole financial system.

Alex Krüger @krugermacro

US SENATOR WARREN: DEFI IS THE MOST DANGEROUS PART OF THE CRYPTO WORLD. Dangerous for banking interests.

sassal.eth 🦇🔊🐼 @sassal0x

Elizabeth Warren the kind of person to give her seed phrase away to random people on Discord

Juicy New Yield Farming Pastures

• Are you sitting on stablecoins after heavily taking profits (hopefully) and don’t want to throw it all back into the market? Then, you should consider deploying a portion of your stablecoins into different DeFi opportunities to earn yield.

• Today, cross-chain bridging protocol Celer Network has launched an attractive liquidity farming program. If you want to provide some of your coins as bridging liquidity and get rewarded handsomely for the risk, you should check out this DeFi opportunity.

CelerNetwork @CelerNetwork

🧑‍🌾GM, liquidity farming is live now!

• While rewards are currently the highest on Ethereum L1, there is also the option to provide liquidity on a cheaper L1 or L2. However, Ethereum fees are much lower today than they were recently.

Composable Finance Crowdloan

• A project we have had our eyes on for quite a while is cross-chain DeFi protocol Composable Finance, which already has a great working product, the Mosaic bridge. Composable Finance is perfectly positioned among several narratives, which we believe will remain hot in the future: Polkadot, cross-chain DeFi, and L2s.

• Today, Composable Finance entered the race for the next Polkadot parachain slot (after Acala, Moonbeam, Astar, and Parallel won the first four slots). If you still believe in the Polkadot ecosystem long-term (as we do), contributing to this fundamentally solid project could be a worthwhile moonshot.

• A big positive is that the hype surrounding Composable Finance isn’t nearly as large as when Moonbeam and Acala had their crowdloans, which means you will likely get a “fairer” allocation now...

Composable Finance @ComposableFin

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Composable Finance @ComposableFin

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Composable Finance @ComposableFin

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