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December 17, 2021
Peak Fear and Wild Price Action
Another day full of volatility and fear lies soon behind us, and again, stock and crypto markets have tumbled hand in hand, followed by a relatively strong bounce from the lows. It’s clear: Nervousness in the investor community is still sky-high – but “buy the dip” mentality as well.
At this point in time, the fate of crypto prices is – unfortunately – strongly linked to the health of equity markets. As you can see in the charts below, today’s price action of BTC and the S&P 500 has been almost identical.
One small comfort we find amid the strong correlation between crypto and stock markets is that Ethereum has been bleeding less than tech stocks…
If you have been reading this newsletter for some time now, you have surely not been surprised by the increased volatility of the last weeks, as we indicated that the Fed’s hawkish pivot, combined with a slowing economy, could lead to a very shaky market.
Does that mean that everything will only go down from here? No, because despite the immense uncertainty all around, the chance of dip buyers stepping in and supporting the markets is still fairly high. We would likely need more cataclysmic events to send the stock markets down to tremendous new lows – which is, of course, always a possibility.
All in all, the current investing climate is certainly not for the faint-hearted, and you should be prepared for more rollercoaster rides in the weeks ahead!
The last weeks’ market downturn has undoubtedly left some scars on crypto bulls. However, technically, the weekly uptrend and the hope for renewed bullish price action are not lost…
We continue to see a “battle” between – likely institutional – crypto sellers on Coinbase and accumulating crypto whales on Bitfinex.
Will institutional selling be exhausted soon, with today marking the last trading day for many funds?
Wild Stories Only Crypto Can Produce
What a crazy day it has been – not just price-wise but also when it comes to other emerging stories. First, Justin Sun resigned as the CEO of the Tron foundation in order to become an ambassador to the Caribbean island nation Grenada... Then notorious crypto-hater Brad Sherman lauded the Mongoose community for donating to tornado victims… 🤯
If you are currently holding Travala’s AVA token, you are eligible for a TRVL airdrop. Don’t forget to submit your wallet today!
A Gaming Project to Have on Your Radar
Yes, gaming tokens have cooled down quite significantly after their huge run in autumn. While we don’t know if prices will come roaring back soon, it’s surely more interesting to look at new gaming projects when the overall hype has calmed down.
An interesting, brand-new project to look out for is Fancy Games DAO. Check out the thread below to learn more!
Disclaimer: With the $FNC token launching today and the overall market environment being rather uncertain, be aware of the risks involved with investing in new projects like these.