The crypto market feels nervous and unloved, but this is the consequence of an overshoot at the start of the year. It’s classic that attention is wandering just as it gets interesting.
This week we continue to argue that this is a good time to accumulate. This rests on three pillars: much larger supply has hit the market this year than investors anticipated, all of which has been mopped up in an elevated price range. That level of supply is unlikely to last in a post-halving environment. Second, we are entering an era of inflation volatility. Already we are seeing global liquidity measures surge, and it helps explain gold’s performance. Like a good value investor, you want to be buying bitcoin when the macro conditions are least favourable, not vice versa. Lastly, and purely from a technical standpoint, we think gold’s recent outperformance of its digital friend has run its course.
The recent riots in the UK have cast a shadow over the summer. Understanding the motives will be key to resolving the discontent, but we are not encouraged by the government’s approach. This is unsurprising because at the root of the discontent is an out-of-touch, nannying bureaucracy that is incapable of introspection. Hard money provides an escape route.
- Technical Back to trend relative to gold, BTC dominance grows
- On-Chain Bitcoin demand/supply analysis, crypto liquidity surge
- Macro Inflation volatility, as global liquidity ticks higher
- Cryptoverse Cars on the blockchain, Russia legalises bitcoin mining, Morgan Stanley allows private client investment
- Ethos Tolerance and freedom in the shadow of the riots
