Our internal risk regime indicator has moved from Neutral-Low to Risk-On. This has surprised us, but that’s the nature of models. They take away the emotion.
We’re not going crazy on this development, as we consider that major challenges remain for bitcoin in particular, but you never know. Relief rallies can morph into something more structural, and we’re happy to be long of our high conviction names for the long term anyway.
In this letter we examine the hidden capitulation in bitcoin, activity on the Ethereum chain and the undeniable and huge adoption of the technology that is happening while investors have given up on the asset class.
We also consider whether – against the prognostications of the doom-mongers, and consistent with the price behaviour of gold – we are approaching an era of super-abundance and prosperity.
Finally, there are some interesting developments in stablecoin world, as the UK regulator pleasingly puts one over the Euros.
Click HERE to Read CHAINLETTER 81