Sunday Rundown - May 30, 2021

May 30, 2021

Bitcoin’s price remains depressed and altcoins continue to bleed. Should you buy? Sell? Sell and then buy lower? HODL and ride it out?Premium subscribers, you know what I’m doing. Hasn’t changed since I published my “Read ASAP” post. If you missed that, tap this button:

Also catch my most recent update, especially if you enjoy hearing what I sound like after I recover from a cold:

Does it feel good to see your portfolio go up +6x over six months and then drop +50% over six weeks?

No, but if this market goes up 6x and drops 50% from now until forever, we will all be very wealthy. Even 6x up, 70% down will give us amazing returns.

Do I think the market can go lower? Yes.

Thanks to the massive volatility of this market, prices of any cryptocurrency can go way higher than you would ever expect and way lower than you ever thought possible. When you look at price channels, trend lines, and Fibonacci levels on pretty much every chart of every cryptocurrency and its BTC pair, you see a massive range of realistic prices. As high as +4x potential to the upside and +70% potential to the downside, even from today’s prices. 

Extreme? Yes. Crazy? No. Extremes are normal. Welcome to crypto! This is a market of extremes. You get used to it after a while.

Did you hear or see anything interesting this week? Leave a comment below and share it.

Here are some interesting things I found.

Delphi Digital published some observations on Market Sentiment and DeFi’s Resilience, including a tweet thread about the de-pegging of the UST stablecoin and its ripple effect on LUNA token (no pun intended).

Watch the Novum Alpha market wrap for this week.

Interesting commentary on some of China’s miners preparing to move operations.

This may explain why we see elevated outflows from one of the biggest mining pools, Poolin, without any similar activity from other mining pools or notable change in the Miner’s Position Index, a metric that imputes and aggregates information from all miners.

As roughly 76% of bitcoin mining capacity operates out of China, it’s worth paying attention to what’s going on there.

Since April, miners have been selling at historically low levels. I’m inclined to believe it’s because they’re flush with cash after unloading big-time from January to March, but maybe it’s because the Chinese miners don’t want to sell while they shift operations? Or simply laying low until they can escape China?

  • Bottom line: a big multinational corporation put a small amount of bitcoin on its balance sheet earlier this year.

  • My take: Globant’s purchase makes up less than 1% of its intangible assets and it may have sold a little when the price pumped. Let’s see how much bitcoin it has on its balance sheet when it reports its next filing.

  • Why we care: while Globant’s interim financial report shows a trivial bitcoin purchase from at least two months ago, possibly as long as five months ago, every tiny institutional purchase adds up and continues to raise the floor on bitcoin’s price.

NASDAQ.com covers crypto.

Lest we all forget that cryptocurrency remains an investable asset even when its price goes down, NASDAQ will remind us with news and commentary. Tap this button to visit NASDAQ’s crypto website.

Not really news, just something I didn’t realize until this week.

What have you heard? Drop a comment below. Relax and enjoy the ride!

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