November 15, 2021
Choppy Waters
Introduction
It has been a choppy few days in terms of price action… While we see a select few projects do well, the broader market is still looking for direction.
It’s certainly true that navigating around Bitcoin and altcoin seasons has become less straightforward than just half a year ago. This makes sense since we have seen a myriad of projects launch this year, and now old and new projects have to compete for attention and capital.
What is the consequence? Only projects with the right narrative and product/market fit stand a chance to do well in this market. Just accumulating random projects to bet on “alt season” is likely not a winning strategy anymore… You really have to do your homework and find the fundamentally strong AND undervalued projects!
Inflation & Bitcoin Will Remain at the Center of Attention
Most people in Western societies have the “Boiling Frog” syndrome, meaning that they don’t realize how out of balance the financial system they live in really is. Inflation rates at 6%, could be worse, right? In reality, many goods have gone up more than 20% in price this year… And there is no end to this trend in sight, leaving the hard-working middle class getting the short end of the stick (again).
Even Elon Musk (every crypto investor’s best friend 😬) agrees that inflation is totally out of control.
Is there a way to opt out of this insanity called the financial system? Of course, we all know that the way out is crypto.
While we got the third Bitcoin Futures ETF approved for listing today, we still have to wait for a spot ETF…
Are crypto prices destined to only go up in a straight line? Even though we all agree that crypto is the solution to many of today’s problems, history has proven that crypto investing is not an easy game. In fact, the majority of people still lose out when participating in crypto trading or investing and many even get “wrecked” badly.
Especially now that we have enjoyed a many month-long bull market, the risks of turbulence are as high as they could be. Crypto is now present in all major economic and political arenas and push-back by incumbents, regulators, and politicians is as certain as the sun rises in the East. So, strap in and try to see the bigger picture beyond the daily price action.
As an investor, be mentally prepared for a lot of volatility and take profits in the sunny times because you never know what FUD they will throw at us next…
NFTs Are Bouncing Back
The NFT markets have seen some notable upside momentum in the last few days. Is it only a relief bounce or a significant trend change towards renewed bullishness? While we know that non-fungible tokens are trading quite differently from altcoins, there are certainly similar sentiment patterns such as euphoria-induced price spikes and subsequent cooldowns.
If ETH and Bitcoin continue to range for a while, this could set up for a nice NFT season. However, if BTC and ETH start moving again, be prepared for NFTs to take a back seat again. In addition, the persistently high gas fees on Ethereum could slow down the NFT party before it really gets going…
Let’s see what NFT thought leader Zeneca_33 has to say:
A Reminder That Security Matters
With many new people joining the crypto and NFT markets lately, awareness of proper risk and safety management is often still lacking. Unfortunately, stories of people making a lot of money only to lose it all thereafter, are getting more and more abundant.
Thank you for this !