November 3, 2021

Fear Is Creeping Back Into the Market – and That's a Good Thing

Introduction

What a brutal day it has been: Bitcoin is down more than 2%, we see single-digit losers across the board and Ethereum… Wait, ETH is up slightly. Of course, we are kidding but it’s fascinating to see that even the smallest dips can lead to such a big amount of fear and “bear market calls” on Crypto Twitter.

If anything today has been a great reminder that this game of euphoria and fear which we call crypto investing will become more and more intense and volatile the more the bull market progress… Are you ready for this rollercoaster ride?

CRYPTO₿IRB @crypto_birb

is this bear market already

Some Thoughts on Investing Psychology and Taking Profits

• Has the dip made today you nervous or did you even panic-sell some of your positions? Then you likely haven’t been around for a long time in crypto… While we know that nothing moves up or down in a straight line, it can be tempting to push the sell button when fear hits the market. While sitting in spot positions can be nerve-wracking at times, leverage trading only amplifies the emotional stress.

Adam @abetrade

I hope there will be one metaverse that will bring all bybit traders to one place and we will be able to watch their actions in a real time.

• But is it really the time to be scared now with ETH consolidating on new highs and on-chain metrics indicating a “luke-warm” stage of the bull market? Probably not if you’re not overexposed and have gradually taken profits on the way up. In that case, you’re likely going to be able to stomach some more volatility going forward – which will inevitably increase the deeper we enter the mania phase of this bull market.

𝕯𝖆𝖓𝖌𝖊𝖗 @safetyth1rd

fundamental trades: 1. size appropriately 2. stay in long enough for it to play out easier typed than done

Dylan LeClair 🟠 @DylanLeClair_

Huge 19,000 BTC outflow from Coinbase yesterday. Institutions are here and they're buying your #bitcoin .

Pomp 🌪 @APompliano

There are only 8 days since June 30th that exchange net position change was positive. Bull market things.

Will Clemente @WClementeIII

Another uptick in illiquid supply shock, now breaking slightly above 2021 highs. Currently at the highest level that it's been since late 2017. Think this local BTC price consolidation is nearing an end soon.

• While the biggest gains come during the last parabolic phase of a bull cycle, it’s also the hardest time to hold on to your coins. So what can you do to not fall victim to emotional decision-making and sleepless nights? “DCA” is the key term.

• The same way we built our positions during bearish times, the same way you can exit them. While everyone has to make his or her own strategies and risk assessments, an individually modified Dollar-cost-averaging strategy will take A LOT of burden off your shoulders.

• When massive price pumps coincide with warning signs from an on-chain, sentiment, or leverage perspective, take profits. The more parabolic a coin goes, the more profits you should take. By increasing your sell sizes into strength you will, on the one hand, train your “take profit muscle” and on the other hand, you decrease your positions according to rising risk.

• Of course, always align your buying and selling strategy with your fundamental thesis for holding a certain coin. This helps to zoom out and ignore some of the short-term volatility.

• If you follow this strategy consistently and don’t make any stupid moves in the more volatile, latter part of the bull market, you will likely walk away as a happy camper. Don’t be like the herd and accumulate more and more altcoins the longer the bull market lasts…

DCinvΞstor @iamDCinvestor

imagine bagholding EOS, NANO, Bitcoin Forks etc. from last cycle in the midst of what is happening now some will learn this feeling in 2022-2023, but with newer assets

The Best Trade and Possible Wrecking Ball of All Time?

• Shiba Inu’s rise in the last few months has been spectacular to say the least. It made thousands of people and in particular one person extremely rich.

Morning Brew ☕️ @MorningBrew

This wallet bought roughly $8,000 of $SHIB last August. It's now worth $5.7 billion. From $8,000 to $5.7 billion in roughly 400 days. We may actually be looking at the greatest individual trade of all time.

• While some were speculating that the owner had lost access to his wallet, we were proven otherwise yesterday. If I were a SHIB holder, I’d be running for the hills…

Blockworks @Blockworks_

The Shiba investor that turned $8k into $5 billion didn't lose access to his wallet. The wallet is active and his moving funds

Loma @LomahCrypto

I’m not gonna FUD $SHIB but if a mfer controlled $8bn worth of my alt… I’d be terrified.

Another Retrospective Airdrop

• Have you claimed a .eth domain before yesterday? If yes, you’re eligible for the upcoming retrospective airdrop by ENS, congrats!

ens.eth @ensdomains

Yesterday we announced ENS is launching a DAO & $ENS token to govern key components of the ENS protocol. Here’s more info on how the DAO will work & the token allocation. *Token claiming will still not open until Nov 8th.* Blog post or 🧵 for more: ens.mirror.xyz/-eaqMv7XPikvXh… 1/

ens.mirror.xyz$ENS Token Allocation (Claiming Opens Nov 8) — MirrorSince we announced that ENS would be launching a DAO and $ENS token to govern key components of the ENS protocol, we’ve had a lot of inquiries as to how the DAO will be structured and what the token airdrop to community members will look like.

MetaMask Expanding Its Support for NFTs

• It was about time for MetaMask, the number one Web 3 wallet by a long shot, to add more support for NFTs, which have emerged as a fundamental new part of the crypto ecosystem next to fungible tokens.

MetaMask @MetaMask

🦊MetaMask now supports NFTs with IPFS-linked images, so your NFT images can survive after the original creator stops hosting it! Developers: To use it, just return an ipfs:// address for your NFT's tokenURI method and image tags🚀

Is the NFT Bear Market Soon Over?

• The last few weeks haven’t been easy for NFT holders: Floor prices have plummeted across the board and only a select few blue-chip projects could maintain their valuations. “Quick flip” opportunities have become a thing of the past… Is there an end to this trend insight? Here are some words of wisdom by NFT thought leader Zeneca33:

Zeneca_33 🍌 @Zeneca_33

Daily Floor Stats Update. Welp. The bear gets..bearier. It's not especially surprising with ETH continuing to rip and hit new ATHs, and with gas remaining consistently high, but it's not fun to see. It's entirely possible that we're at the beginning of the true great bear market,

Zeneca_33 🍌 @Zeneca_33

and it's also entirely possible that when ETH and gas settles, lifeblood will flow back into the whole space. We also sure do have a lot to look forward to, especially coinbase's NFT marketplace by year end. Many individual projects are continuing to build and create and deliver

Zeneca_33 🍌 @Zeneca_33

awesome things too; so while it's easy to be bearish on the whole market, it's also easy to be incredibly bullish on some projects at the same time. In fact it's also easy to be incredibly bullish on the whole space, while still being short term bearish. I think that would most

Zeneca_33 🍌 @Zeneca_33

accurately represent how I have been feeling lately. I am pretty confident in saying that in 2 years from now, most of the projects on these charts won't exist (or have near zero floors, at least). Most of those that do, however, will probably 10x+ from here. The flight to

Zeneca_33 🍌 @Zeneca_33

quality will only continue as time goes on, and there are only ever going to be so many "quality" NFTs from 2021 or before. You think the market is saturated now? Wait until we have 100,000,000 active buyers and sellers, and not like 150,000. Wait until gas is single dollars or

Zeneca_33 🍌 @Zeneca_33

cents again, when most projects are launching on layer 2s with seamless integration from main net. Wait until $4 pfp projects become a thing. THAT is going to be when the market is truly saturated, and that is where the older, and more well established projects, will truly shine

Zeneca_33 🍌 @Zeneca_33

and stand out from the crowd. Punks and Apes are currently considered some of the most luxury/s-tier PFPs, with their prices accordingly high. While it's still a luxury to own a WoW, or Creature, or SupDuck - they're not quite at that s-tier luxury 'blue chip' level yet. If

Zeneca_33 🍌 @Zeneca_33

they're still around in a few years, they will be, and they will be priced accordingly. 10,000 isn't a lot. It is really not a lot. 100,000 x 10,000 is; and therein lies the problem. In the future when someone wants to buy an NFT pfp to 'flex', to show off their status, they will

Zeneca_33 🍌 @Zeneca_33

look first to Punks and Apes, and realize they probably can't afford or justify them. Then they'll look at the other luxury brands: cool cats, WoW, pudy penguins. Whatever they may be. If they're around then, they'll be flagship NFTs in a luxury brand. It's getting harder and

Zeneca_33 🍌 @Zeneca_33

harder to have confidence that newly launched projects will be around in a few years- they truly do need to be exceptional. Some that have launched recently are; most are not. Some will be around in a few years and worth many multiples of their current prices; most will be

Zeneca_33 🍌 @Zeneca_33

worthless. Don't ask me to tell you which ones will survive and which won't - I have almost no idea. Nobody knows; nobody can know. The amount of factors outside of any individual's control are enormous, and they are what will decide which projects will survive and thrives, and

Zeneca_33 🍌 @Zeneca_33

which ones will fail. You can make educated guesses and place your bets accordingly - this is all I do when I buy an NFT for the long run. I do it by looking at the team involved, and usually that's it for me. Even so, many projects with fantastic teams are still ngmi. The NFT

Zeneca_33 🍌 @Zeneca_33

space is risky - I have been saying this every week since I started posting these daily stats, and lately, closer to every day. It is a HIGH RISK environment - please invest responsibly. Projects can and will drop 90%+, heck, some have just over the last month. Don't put all your

Zeneca_33 🍌 @Zeneca_33

eggs in one basket. Diversify. Diversify within the NFT space, and outside of it. What this looks like is going to be different for each individual - if you're a single 23yo with a good job and no dependents you can probably afford to take a riskier approach than someone who is

Zeneca_33 🍌 @Zeneca_33

38 with three kids and two mortgages. Ok back to the numbers - won't single out too many projects but a very nice "recovery" for @BYOPills after their Apostles launch, seems the market still values the OG pills for the role they'll be playing in their universe. It's always nice

Zeneca_33 🍌 @Zeneca_33

to see @zenft_ Bonsais performing well - i was just thinking of picking up some more the other day. The @crypto888crypto inner circle had a nice day up 21% and @RumbleKongs as well, up 20%. A few other decent green results but otherwise most projects are down 5-30%. A rough day,

Zeneca_33 🍌 @Zeneca_33

after a rough week, after a relatively rough month for the NFT space. I hope you're managing your mental health well - this space can take a toll. Take some time away if you feel yourself spiraling; no amount of money or success is worth the price of your health 🤎

• To end, here is some NFT hopium:

SNIPΞS NFT @SnipesNFT

If y’all are panicking cause the market is red, y’all NGMI. Lots of big things happening: - Twitter PFP verification - Coinbase NFT platform - Facebook —> Meta