Is Crypto Back??

17 Nov 2023

Unless you've been living under a rock recently, you're probably familiar with the recent excitement that the crypto sphere has seen.

Bitcoin ripping to 36k
Ethereum roaring back to ~2k
and Solana back up to ~$65

Much of these recent gains have come off of the back of what appears to be imminent Blackrock Bitcoin ETF approval, which has caused speculators to buy in advance of what could be widespread institutional adoption.

However, there's hardly been a blip in the mainstream media. Sure, financial outlets are carrying word of the recent rallies, but almost no mainstream outlets seem to have picked up on it yet.

Our families aren't talking about it. Our friends aren't talking about it.

Buying now seems like it could be a good time to get ahead of the curve for the potential future run that many have been predicting since the crash that began almost 2 years ago.

Thus; there are two questions.

1.) is a rally coming?

and 2.) what should you buy?

Let's start with 1.

The technicals are in favor of further upside momentum.

Solana, Bitcoin, and other massive coins have done extremely well over the last month or so:

Bitcoin:



Ethereum:



Doge:



This means that momentum is solidly positive for the first time in a long time. Sure, there was some strength in the beginning of the year, but this 'feels' different, as many levels, like Bitcoin 30k, have been broken to the upside for the first time in a while.

Additionally, breadth has been great.

There are some concerns about overheating, and it does seem likely that (barring a massive rally), things will consolidate before heading higher in another leg.

Thus, there's really only one question: What should you buy?

In crypto, there's a common theory about the flow of money over a cycle.

1.) Bitcoin goes up
2.) followed by blue chips
3.) followed by DeFi
4.) followed by pure trash

As things progress, people take more risk and go into more risky areas.

In our view, the bitcoin-led segment of this rally still has some room to run, which means that it could be time to grab some blue chips and defi projects you like in order to capitalize on when the rally becomes more 'speculative' in nature.

Here are the top projects we're watching

- AVAX (beaten down L1 with big RWA - real world asset - potential given the recent JPM news)
- MATIC (beaten down ETH L2 with massive Biz Dev prowess)
- ATOM (alternative L1 ecosystem gaining traction and adoption)

DeFi

- GMX (high quality DeFi perpetual futures exchange)
- THE (top dex on the BNB chain with tons of revenue and a relatively cheap market cap
- BIFI (the best yield aggregator for liquidity providers)

Some would put Solana in the Blue-Chip category, but the risk is simply too high with this one, in our mind, especially due to the revelations from the SBF trial, with some claiming that FTX could turn it off and on at will. We may miss out on some gains if it does well, but hey - that's life.

Things are hot right now, so waiting for things to come back towards median before launching again seems like the best course of action, from a risk-reward perspective.

Good luck out there!

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