November 4, 2021
The Calm Before the Storm?
Introduction
While the markets have been holding steady today, emotions are all over the place in the crypto community. While some are spotting “distribution” and are calling the top, others prepare confidently for an altcoin season of epic proportions. Who will be right?
Market Watch
While we have seen the Fear & Greed Index come down a bit from “extreme greed” yesterday, there are still reasons for caution in the short term. Mainly, increasing funding rates for many altcoins as well as the massive, continuous pumps of many coins in the last few weeks lead to believe that some sort of correction could be appearing on the horizon.
As stated yesterday, these short-term warning signs shouldn’t distract you from your fundamental investment thesis. They are a good reminder though to assess your current risk profile and decide which projects you are willing to hold through the inevitable double-digit percent dips that will come.
The macro uptrend is still looking strong and with Bitcoin’s and Ethereum’s funding rates being somewhat subdued compared to many of the “hot” altcoins, the risk-to-reward seems to be skewed towards BTC and ETH right now.
Mainstream Gaming Is Catching on to Crypto…
It’s no surprise that Axie Infinity impressively demonstrating the potential of blockchain gaming and Facebook going all-in on the metaverse has drawn the attention of mainstream gaming companies. More and more are now coming out of the woodworks to announce their crypto endeavors.
Widely known as a business-oriented company that utilizes the pay-to-win model in several games, EA has not yet tried its hand at the play-to-earn games. However, EA hinted that it had set its sights on blockchain and NFTs, as a job posting from summer revealed. Wilson believes that collectible digital content will play a meaningful role in the company’s future.
The opportunities to invest in blockchain gaming projects will be vast in the next months and years – if you have an intelligent approach.
Remember: With all the excitement surrounding crypto gaming and the Metaverse, it’s important to not get carried away by FOMO!
It’s crucial to always do your due diligence and research a project before blindly “aping in”.
Meanwhile, we see more pain in the NFT markets… An opportunity to buy or the start of a more prolonged “NFT bear market”?
