In This Issue
- I share my thoughts on the state of the market, the Fed meeting, big tech crushed, grain exports halted again, Bitcoin miner capitulation, art gobblers, dogecoin mega rally & new alt coin season.
- Rebecca breaks down the latest news.
- REKT has a TA report on some top altcoins.
[Last Chance] Crypto Alpha Report
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- 🎈 The top Airdrops of the month
- 👀 The Top Altcoins to watch
- 🧑🌾 The best DeFi Farms
- 🙊 The most exciting NFT mints
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What’s On My Mind by Lark
The State of the Market
Well, what a crazy damn week!
Lots of bullish price action as people started speculating on a possible FED pivot. Dogecoin popped up due to Elon again. Then today the FED smashed everyone’s hopes into a million pieces! Crypto man… I love it!
Now we all get to worry about the CPI data release next week and how that will affect markets.
The volatility recently has been great for traders. For long term investors buying during the bear market will prove wise with time. But, a lot of uncertainty remains heading into the end of the year.
The Fed Meeting
Jerome Powell announced another 0.75% interest rate hike today which the market had been anticipating.
Initially we saw markets rallying on the back of basically getting what we had expected from the FED. However, he then said that “ultimate level of rates will be higher than previously expected”. Meaning that rate hikes could go on for longer than we expect even if the size of them slows down, and that the final target previously said to be 5% could be higher.
This was enough to catch the markets off guard and see prices fall for assets across the board.
That being said, rates will slow and stop in the near future. Powell even said that the time to slow rates may come as soon as the next meeting on December 16th. #silverlining
Big Tech Crushed
It has been one hell of a year for big tech companies, and ETFs like Ark. Let’s look at Facebook which is down 75% from its all time high. That means that if you had bought Facebook stocks in January 2016 you would be back to break even… OUCH! Amazon while not down as far as Facebook did have a 20% drop last week which is pretty dramatic for a stock with over a trillion dollar market cap.
Bitcoin is down 70% from its all time high, but is only back to the same price as December 2020. Interesting perspective.
And to be clear some tech stocks are already putting in good rallies like Netflix which is up 100% off of lows. Apple is only down 15% from all time highs. So it is not all doom and gloom, but still it is crazy to see such massive companies in such turmoil.
Grain Exports Halted Again
Russia has once again halted grain exports from Ukraine via the Black Sea ports in Southern Ukraine. This was in response to strikes against their fleet in Sevastapol.
This once again creates a situation of food insecurity, and thus food price instability, and… you guessed it, more risk of inflationary forces for regular people. With gas and oil prices likely to rise heading into the winter it creates real danger for the markets. Either that or everyone gambles their rent, gas, and food money on dog coins…
That all being said, Turkey has said it remains committed to the deal and multiple bulk freighters loaded with grain have left Odessa since Russia’s announcement. So, perhaps this will not put the pressure on markets that some fear.
Bitcoin Miner Capitulation
Many are starting to talk about a possible Bitcoin miner capitulation event.
Argo Blockchain and Core Scientific are both on the brink. Argo has been forced to sell 4,000 mining machines to stay afloat and Core Scientific could be on the verge of going bankrupt. Neither company holds much Bitcoin which means that if they go under there won’t be a big sell off. But their woes do raise the question, are these mining companies the outliers and victims of natural selection or are they indicative of a wider Bitcoin miner meltdown?
The thought is that just because miners aren’t talking about it doesn’t mean that it is not happening.
Marathon, Riot, and Hut hold around 27,000 Bitcoin between them. If those companies were in trouble then it could bring in some real sell pressure.
Time will tell how this story plays out. But if we do face a deeper price correction in the future it will absolutely put big pressure on these companies which may become forced sellers.
A new NFT collection called Art Gobblers has come out. It was a collab between Justin Roiland (creator of Rick and Morty) and a VC firm named Paradigm.
The NFT was a free mint and started trading around 15 Ethereum. That is $22,000, and I want to repeat, on a FREE MINT!!! Crypto is crazy man. Although you did actually need to show up in the discord and do something, as is so often the case with NFTs.
Cool to see that NFTs are still making money, and while it is a super speculative end of the crypto market the truth is that digital collectibles remain hot and a great opportunity for making money. So keep your eye on that weekly NFT mint list that Sam makes!
By the way, to be clear, I am not saying to run out and buy these NFTs, I’m not! I am just blown away by the NFT hype still visible in a bear market.
Dogecoin Mega Rally!
Dogecoin has been going insane this week after Elon Musk took over Twitter.
Speculation is that he will add DOGE in some kind of form to Twitter. What that looks like we don’t know. If that even happens… no idea. But traders are going nuts as Elon keeps dropping bread crumbs like this.
New Altcoin Season
As a follow on from the Dogecoin insanity, many are now pointing to this as evidence that a new “altcoin season” or maybe “mini-alt season” could be upon us!
It is definitely nice to see crypto waking up after weeks of effectively doing nothing. In particular meme coins are following Doge’s lead!
Usually when Dogecoin rallies we expect a broader altcoin rally to form up, but will this time be different? John Templeton said that the 4 most dangerous words in investing are “this time is different”, and while most apply that to bearish scenarios, it also applies to bullish ones.
However, the one thing standing against a broader altcoin rally, and that Dogecoin will not be the tide that lifts all boats is the very specific reason why Doge is pumping based on speculation around it being added to Twitter.
Usually we expect to see bigger moves by Bitcoin before calls for an altcoin season come out, but maybe this time the tail is wagging the dog?
Just keep in mind that while it is very exciting to see these pumps in the markets that very real macro risks remain and that Bitcoin is still about $5,000 away from hitting the key downtrend line that would signal a real potential for a big rally across the board for crypto. Until that happens keep expectations in check and remember to book profits on any short term positions.
In Case You Missed It by Rebecca
Crypto market news
Almost 50% of Gen Z and Millennials want crypto exposure in 401k plans, according to a survey by Charles Schwab. Source
Western Union has filed three trademark applications relating to crypto services. Source
NYDIG parent company, Stone Ridge, launches a Bitcoin Lightning Network accelerator to help those building on the protocol. Source
Swiss Seba Bank has launched a regulated custody platform for Ethereum-based NFTs. Source
Bloomberg’s Matt Levine has written a 40,000-word article on the good, the bad, the ugly, and the hope of crypto. Source
BlockchainCom launches a Visa crypto-linked debit card with 1% cashback in crypto that’s available to US users. Source
Jack Dorsey’s Block hires former Argo Blockchain CTO, Perry Hothi. Source
Google is launching an in-house Blockchain Node Engine for Web3 developers based on Google Cloud. Source
Bitcoin miner, Core Scientific, is facing bankruptcy with only 24 Bitcoins left in reserves and indicates it will not be making debt payments in October and November. Source
Bitcoin miner, Argo Blockchain, is at risk of ceasing operations due to a lack of financing. Source
ConsenSys is to spend $2.4M per year to fund its newly launched MetaMask Grants DAO. Source
Coinbase Ventures and Alameda Research backs a crypto wallet service that’s launched in Africa to serve 2M users in Nigeria and Kenya. Source
Meta has burned through $9B on the Metaverse so far in 2022, but spending is set to increase. Source
Revolut is adding a crypto spending feature to allow customers to pay for items using their crypto balance. Source
FTX is reportedly working on creating a stablecoin and ruled out an acquisition of Robinhood. Source
FTX records its largest short liquidations event in history with a total of $936.24M wiped out. Source
Twitter has partnered with 4 NFT marketplaces to allow users to buy and sell NFTs through tweets, with its new “NFT tweet tile” feature currently in testing. Source
Binance CEO, CZ, has warned that when searching for CoinMarketCap on Google, there are still phishing sites listed. Source
Visa has filed two trademark applications relating to crypto assets, NFTs, and the Metaverse. Source
The Japanese city of Toda, Saitama, has adopted a metaverse-schooling service to help reduce the number of students absent from classes. Source
NBA basketball player, Steph Curry, has filed a metaverse trademark application for the “Curryverse.” Source
Coins and Projects
Bitcoin’s trading volume against the British Pound skyrocketed 233% in September after GBP fell to a record low against the US Dollar. Source
Bitcoin software company, Synonym, has launched a Bitcoin wallet called BitKit, powered by the Slashtags protocol. Source
BNB Chain has been chosen as the blockchain of choice for testing Kazakhstan’s CBDC. Source
Binance has announced the launch of a new data feed network called Binance Oracle, allowing dApps on the BNB Chain to access real-world data sources. Source
Binance intends to create a team to support Twitter’s blockchain efforts after it’s revealed that CEO, CZ, helped fund Elon Musk’s takeover with $500M. Source
BNB Chain integrates Layer-2, Boba Network, and SushiSwap is set to launch on the BNB version of Boba as a launch partner. Source
Solana DEX, Serum, has filed a proposal to make governance changes to its DAO. Source
Polygon has integrated with the BitPay app to allow users to spend Polygon-bridged ERC-20 tokens such as USDC, ETH, and DAI. Source
Polkadot’s privacy project, Manta Network, has announced a trusted setup ceremony that will be used to launch its payments app. Source
Coinbase has filed documentation asking permission to help Ripple Labs in its ongoing legal case. Source
Axelar has teamed up with Polygon Supernets to deliver cross-chain communications. Source
Axie Infinity has unlocked the first batch of 10M tokens to early investors and insiders, with those recipients sending $5.7M worth of AXS to exchanges. Source
Cosmos Hub has postponed the vote date to 31 October for its Atom 2.0 whitepaper as a revision was made to the document. Source
PancakeSwap approves a proposal to launch on Aptos with a 98% approval rate. Source
THORChain, a Cosmos-based blockchain was halted due to a software bug. Source
TON blockchain launches a marketplace for Telegram handles and channels to be bought and sold using Toncoin. Source
McCain Foods has launched a game in the Roblox Metaverse for players to virtually grow potatoes using regenerative farming methods. Source
MakerDAO co-founder, Nikolai Mushegian, has died in Puerto Rico at the age of 29. Source
US GDP grows 2.6% in Q3 which is faster than expected, so more interest rate hikes are likely to continue. Source
Nigeria’s CBDC has a 0.5% adoption rate after its first year – there’s hope! Source
Vietnam’s Prime Minister says the country needs to regulate crypto after facing pressure from its lawmakers. Source
Turkey is set to launch its CBDC next year and will be integrated with digital ID technology. Source
Australia confirms crypto transactions will be subject to capital gains tax, as it’s deemed an asset and no longer a foreign currency. Source
Elon Musk has completed the acquisition of Twitter and NYSE has stopped trading on the stock, as part of the deal to take the company private. Source
Costa Rica congressman proposes a crypto-friendly bill to regulate and exempt crypto tax profits generated from mining activities. Source
Switzerland’s city of Lugano and El Salvador have signed an economic cooperation agreement to help with educational and research resources. Source
The Reserve Bank of India is to reportedly launch its retail and wholesale CBDC pilots in November across select locations, involving 9 locally operated banks. Source
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Market Analysis by Rekt Capital
In today’s Altcoin newsletter, I cover 9 different Altcoins, specifically:
- Litecoin (LTC/USD)
- Binance Coin (BNB/USDT)
- Coti (COTI/USDT)
- Theta Token (THETA/USDT)
- Crypto Com (CRO/USDT)
- OMG Network (OMG/USDT)
- Polygon (MATIC/USDT)
- Chainlink (LINK/USDT)
- Shiba Inu (SHIB/USDT)
Let’s dive in.
Litecoin — LTC/USD
LTC is rallying quite strongly this month but this comes after a relatively bearish Monthly Close this past October; after all, LTC Monthly Closed below the multi-year Higher Low trendline (black).
That being said, price is trying to compensate and invalidate the bear bias inherent in last month’s close by attempting to reclaim the multi-year Higher Low trendline as support.
Because the way things are on the chart, staying below the Higher Low could mean that the HL becomes a resistance and could reject price to lower levels within this historical demand area (green).
On the other hand, reclaim the HL as support could see LTC challenge the top of the historical demand area for an attempt at a generational breakout.
It’s key to mention that historically LTC has performed upside wicks beyond the top of the green box before rejecting strongly so a Monthly Close above the top of the green box followed by a successful retest of it into support is what would confirm a new macro uptrend.
In the short-term however, LTC is trying to reclaim the HL as support first.
Binance Coin — BNB/USDT
Monthly Close above the orange level means that BNB may be ready for uptrend continuation via the blue pathway.
First however, BNB may need to dip into orange to retest it as support.
Once successful, BNB could rally towards the red resistance above.
This inherent bull-bias of course would be invalidated if BNB loses orange and flips it back into resistance (green path), though this seems unlikely given how BNB just recently broke out from a multi-month re-accumulation channel below orange resistance.
Coti — COTI/USDT
COTI has had a multi-month Bearish Divergence on price and the RSI for a while but it looks like a more micro one may also be developing.
If COTI fails to break the red diagonal resistance, then a revisit of the blue level below could be on the cards and that level itself could lapse if COTI Weekly Closes below blue.
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Lark and the Wealth Mastery Team
TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
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