November 30, 2021
Ethereum Is Leading the Way
Is Ethereum “saving the bull market”? We don’t need to get into that discussion, but either way, Ethereum’s outperformance today has been impressive.
We witnessed more than once in the past that Ethereum has the ability to lead the markets and lift Bitcoin and the rest of the market with it. Also, ETH pumps often precede major altcoin seasons…
However, with altcoins already in the spotlight for weeks now, most alt/ETH charts are not looking too hot. And, of course, the risk of a continued stock market meltdown has not disappeared just yet, so be careful with the bets you place right now.
While the green in the market is certainly a pleasant way to start the week, there is no reason to become euphoric or careless now. Even after today’s price action, Bitcoin is still firmly in a mid-term downtrend. So, put on your war helmet and get ready for a roller coaster ride with different potential outcomes!
We have been beating the drum for days that Ethereum’s chart presented an excellent technical set-up – especially when compared to the rest of the market. We have seen repeatedly that once the crowd is leaning on one side (hot L1s), “ignored” assets – in this case, Ethereum – can start to shine. Especially the ETH/BTC pair is looking very strong right now!
Coupled with the growing excitement for ETH scaling and particularly ZK-Rollups (+ the fact that most metaverse and gaming projects are in the Ethereum ecosystem), there were enough catalysts to catapult ETH higher.
Let's not forget whom we have to thank for the current Ethereum pump, Zhu Su 😉 (For those uninitiated: Three Arrows Capital CEO and crypto investing legend Zhu Su hit Ethereum's bottom to a tee when he announced to “abandon” Ethereum last week, causing quite an outcry...)
Of course, when ETH is outperforming Bitcoin in such a notable way, the Ethereum community is quick to come out and call for the “flippening” (meaning, Ethereum overtaking Bitcoin in market cap).
In my opinion, while the flippening is a possibility, Bitcoin and Ethereum fulfill utterly different use cases at this point in time – "store of value” vs. “programmable money.” However, once Ethereum successfully completes its transition to Proof-of-Stake, there is a realistic chance that Ethereum could go for Bitcoin’s “digital gold” position… So far, Ethereum has the burden of proof on its shoulders to achieve what Bitcoin has achieved: maximum trust.
On another note, yesterday’s stepping down of Jack Dorsey as Twitter CEO seemed to “magically” accelerate Ethereum’s bullish move. And indeed, shortly after Dorsey’s resignation, Twitter added ETH to its tipping feature yesterday – “probably nothing,” as they say.
In addition, Ethereum secured the support from another unexpected party 🍻😄
Inflation, Inflation, Inflation…
I know most of us have heard about inflation in recent weeks... But the unfortunate reality is that inflation is not something to just brush off and ignore. No, inflation affects everyone, whether your salary and savings are no longer enough to cover the rising cost of living or because you benefit directly from asset inflation as an investor.
If you know how inflation works and how it affects literally everything, you can take decisions that have the potential to transform your life! That’s why we’ll keep covering this critical topic for the time being.
What “positive” effect could the new Covid-variant have for the markets? No matter how absurd it may sound, but bad news is often good news for the markets – especially in an “up-only” bubble phase. Although objectively bad for many people and companies, renewed Corona restrictions will likely cool inflation and could serve as an excuse for the Fed not to intervene until later next year. Thus, the stock (and crypto) market party can continue for the time being unless another negative catalyst comes up…
More Positive Crypto Regulation News
After the massive positive EU regulation news we covered a couple of days ago, we got some more good regulation news today:
Greatly appreciated! Excellent summary!