December 31, 2021
Ending the Year with a (Small) Bounce
It seems like the crypto community has already checked out for the year because there is absolutely nothing going on – no hot news, no debates, no controversy…
Before we jump into today’s content, I wanted to wish everyone a very happy new year – may it be as exciting and profitable as 2021!
At least price-wise, it seems like the bears are showing some mercy on the last day of the year, with the crypto market bouncing moderately from yesterday’s lows. Especially DeFi is finally getting some love after being beaten down for months and almost entirely skipping the altcoin bull market in the second half of 2021.
It seems like options expiring today was the primary catalyst for this week’s price action. Only up from here?
The last weeks’ sentiment on Crypto Twitter could make one believe that we have entered a brutal bear market with prices crashing to new lows on a daily basis. If you zoom out and look at the charts, however, you can see that after the initial liquidation dump, prices have just consolidated in a large sideways channel…
We have outlined several times recently that the crypto market will likely look quite different in 2022, with less overall money printing by central banks driving up asset prices, a new crypto cycle framework (lengthening cycles?), many projects and important updates finally shipping (think the Merge, innovations in the NFT space or hotly anticipated crypto games) and an overall structural shift of the crypto market. To end the last post of the year, let’s conclude with some more fresh outlooks for 2022: