Introduction
Well, the past few days have been quite the rollercoaster ride… Up, down (a lot), up, down, and up again – that’s the fastest way to describe the last days’ crypto price action.
What was eye-catching this weekend is the sheer amount of bearishness the recent correction has provoked in the crypto community. This time, however, we didn’t just see the usual trend followers and noobs come out of the woodwork to call for caution but also seasoned crypto “big brains”. Of course, optimistic voices are still prevalent as well. So, who is right?
Bear Market Fears Are Reaching Peak Levels
It hasn’t been all sunshine and roses on Crypto Twitter in the last few days. In fact, fear and toxicity have reached levels not seen in months.
The main point of contention was: Is the current correction only a precursor for the continuation of the bull market or do we find ourselves at the beginning of a prolonged bearish period? The opinions on that are split.
One thing is clear: If you’re not having a close eye on both fundamentals and technicals in this market, and you’re not able to adapt quickly to new market conditions, there is quite a bit of pain in store...
When reading through the opinions of others, it’s important to always keep the following in mind:
Market Watch
While last Friday’s drop-off certainly has been intense, it’s important to put things into perspective and recognize that most projects are still just a few percent below their highs. Judge for yourself if this means increased risk for further downside or a downplaying of the current correction.
The bounce today had to be expected since nothing moves in a straight line. The big question, however, is, what comes next? Have we seen the bottom and can go back to full-on bull mode or are we only seeing a “relief rally" today? Well, as seen above, opinions and data are divided on that. Your own risk tolerance and conviction will have to determine how you want to be positioned in this market going forward.
While MicroStrategy buying Bitcoin certainly creates welcome buy-pressure, at this point, it’s certainly not big news anymore.
Apart from the prevalent risk for more downside, there are, of course, reasons to be optimistic. Many on-chain metrics and data science models are still looking fairly promising. It’s important though to take such models and fractals with a grain of salt.
StarkNet Alpha Has Launched
In the wake of the growing excitement for Rollup-scaling solutions in general and ZK-Rollups in particular, StarkWare has launched its highly anticipated StarkNet Alpha today! This release marks a critical step towards fully-fledged ZK-Rollups which pave the way for a highly scalable Ethereum ecosystem. Let’s see how the rollout is being received and especially which projects decide to deploy on StarkNet in the weeks to come.
Uniswap (Probably) Coming to Polygon
With its fast and cheap sidechain implementation, Polygon is not just a leading Ethereum scaling solution but also a hot contender in the ZK-Rollup race. It’s exciting to see the “DEX king” Uniswap (likely) expand to Polygon soon. For yield farmers, this means safe and potentially attractive pastures coming up soon. However first, some governance hurdles need to be overcome.
Is Crypto Just a Big Scam?
It’s clear that despite the tireless innovation and building by thousands of talented developers and teams, there are still many misconceptions and prejudices about crypto in the mainstream. While it’s certainly true that crypto hasn’t proven its full potential so far and many “killer applications” are yet to reach a critical adoption threshold, there are countless use cases which – already today – change the lives of hundreds of thousands if not millions of people.
Jack Dorsey Stepping Down as CEO of Twitter
There have been rumors for quite some time and today we got the news that Jack Dorsey is stepping down from his post as Twitter CEO. What impact will this have on Twitter’s Web 3 ambitions now that “Bitcoin-maximalist” Jack Dorsey is not in charge anymore? We’ll have to wait and see.
