Market Recap | 2021 #43

Dear AbNormals,

We’ve seen ATH again and again on different assets such as ETH, SOL. BTC is a bit lagging behind (always keep the cycles in mind, money flows from one asset to another).

What’s the market saying right now? Memes
The meme coins are taking the stage again, but I won’t be surprised to see them dump. Shiba Inu for example is a coin with a lot of social traction, people shilling it and saying that it’ll go to $1. IMPOSSIBLE! For Shib to reach $1, the market cap needs to be $500T.

The total value of an asset based on its current market price. A cryptocurrency’s market cap is found by multiplying the price of a single coin by its circulating supply.

https://unstoppabledomains.com/blog/the-web3-glossary

I’ll be deep diving into market cap and supply in a future article.

There’s a particular organization in Suriname that’s shilling Shiba and Doge to newbies, making TikTok video’s showing off their gains (but never their losses 🙄) and saying that it’ll moon to $1. This creates a yolo effect which will make people buy crypto via their services.

Why are they doing it you might ask? They make money selling crypto, 8% fee when you purchase or sell your crypto (when you want to cash out). They’re making bank with the volume that they’re getting from newbies who want to make a quick buck.

During the gold rush its a good time to be in the pick and shovel business

Mark Twain

Metrics

Let’s take a look at some metrics, I love to take a step back and zoom out to look at the bigger picture.

Bullish

BTC and ETH Exchange reserves

We’re seeing a downtrend in exchange reserves again, whales are buying and withdrawing from the Exchanges into their custodial wallets.

ETH Exchange Reserves 🔻

People might be withdrawing from exchanges to stake

ETH Staking Rate 🔼

BTC Reserves is also rapidly declining

BTC Exchange Reserves 🔻

Bitcoin Miner Position Index

The Bitcoin minders are still hodling since the March crash

Miner position index 💤

Willy Woo, a well known on-chain analyst, touched on this topic in his recent interview

CBBI – Bitcoin Bullrun Index

I’ve come across an amazing metric that combines different metrics to create an average score.

The CBBI is a Bitcoin index that utilizes advanced, real-time analysis of 12 metrics to help us understand what stage of the Bitcoin bull run and bear market cycles we are in. The CBBI is time-independent and price-independent. It simply indicates whether it believes we are approaching the top/bottom of a Bitcoin cycle.

https://colintalkscrypto.com/cbbi/

The CBBI score is still 62 at the time of this writing so we have a long way to go. A score of 80 would be a level to start being cautious.

CBBI

Bearish

Fear and Green Index

We’re at the euphoria level of the market again.

Conclusion

On-chain data clearly indicates that this cycle isn’t over yet, but let’s ride it out 🎢

What am I doing right now?

Rebalancing, I’ve been selling a couple of Altcoins such as ADA for stablecoins to buy lower when there’s a pullback.

I’m still investing in RealT, which is fractional real estate yielding me around 11% per year. I’m using them as a savings account, away from the hype of crypto 😅


Tip Jar

If you appreciate the work I’m doing, consider supporting the website 😊

ETH or ERC20: mitchel.eth
BTC Segwit: bc1qqfnfkrnhv903v9v38n98vvk35hgrp77ay7kwqr
BTC legacy: 1DhGZ1kvEF1wamq3oRb4f7pPz3cMBaxKz


Reminders

I’ll list some reminders for you guys and useful articles to help you understand certain topics better.

Crypto money flow

Always keep this image in mind, money flows from asset to asset.

Crypto Money Flow
https://www.rektcapital.co/articles/cryptomoneyflow

Fear is the mind killer

Take control of your emotion, and remember that you are the one pulling the trigger. It’s a lot harder than it sounds. This is the reason why you can’t rely on demo account or play accounts, because you’re taking away the biggest hurdle of an investor, EMOTIONS.

https://link.medium.com/SqECGkeNegb

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