Today’s Nuggets
Is Powell Boxed In?
Mega Fear Across the Cryptoverse
JPMorgan and Goldman Sachs Resignation
Puell Multiple Points Bullish?
Panic Selling!
Largest BTC Dump Since FTX?
Tether’s Profit-Taking Strategy
5 Consecutive Days of Zero BTC Buying?
Grayscale Drainage Continues…
We have been anticipating some nasty weather ahead and boy, did we get it!
The question is, what is going to happen next? Is this a bull trap or have we hit a local bottom?
We will look at a ton of on-chain analytics and try to determine the answer to these questions. We will also cover the FOMC meeting as well as all of the fears in the market.
Crypto Market Update:
The global crypto market cap is $2.13 trillion, with a 24-hour volume of ~$100 billion;
The price of Bitcoin is $57,270.61, and BTC market dominance is 52.8%; and
The Crypto Fear & Greed Index is currently Neutral (54).​​
As a reminder for those interested in Bitcoin-only content then, the playlist can be found here:
https://www.youtube.com/playlist?list=PLWTRLGkkf1kTTbIDdv-P6ykul7a8iUXYf
*Some browsers do not show their YouTube playlists, so make sure you are using the Chrome browser.
We will start with the news, then cover a ton of charts!
Finally, you will decide if the local bottom is in…
There is no chance of a hike because there is too much debt.
The labor market data that I see is absolutely terrifying!
I hope that one day, the fed will see the same stuff that I see…
The big news is that the Fed will maintain the current interest rates and slow the pace of balance sheet reduction.
Janet Yellen and the Treasury are out of cash and need the money printer on. I read this as code for: the money printer is coming!
This is exactly the sentiment in the market that I see.
80% of the market is negative and 20% see this as a buying opportunity.Â
It is important to get a perspective of where we are!
My target was $42,000 by the Halving and we hit $73,800.Â
Let us look at more data…
This is from E.J. Antoni, Ph.D. who said, "Treasury expected note and bond issuance little changed from prior months, once again leaving bills to pick up the slack as Yellen doubles down on short-term financing of debt; she is in deep trouble without rate cuts, so now the pressure is really on Powell to taper QT - and fast..."
Yellen is in deep trouble without rate cuts.Â
This puts Powell under real pressure to not only taper QT but also print and cut fast.
The writing is on the wall because the Treasury has no money.Â
This is perhaps because they missed the biggest ETF opportunity in decades.
Maybe the exits are just a coincidence or perhaps they are not?Â
At last, the Fear & Greed Index is returning to Earth. I like to buy when the markets are fearful and it does not make sense when I see us remaining in the Greed zone.
Something is wrong with the data or this chart.
This chart displays the top buyers over the last eight weeks, which is a thing of beauty from glassnode.
This chart shows the realized losses being crystallized by all the top buyers over the last two months. If you are not ready for the market to go down, you should not own assets that go up and down.
The people who came into the market two months ago got kicked in the teeth and became panic sellers.Â
The Bitcoin Puell Multiple has dropped to 0.8 despite a steady price due to the Halving, which has lowered the miner's average income. Historically, price increases have followed these drops, suggesting a potential bull run for Bitcoin.
When we see the Puell get too high, we get nervous and when we see it go down, we get bullish.
It is that simple!
Bitcoin was flushed down to $56,600 the other night - a rough night for me too!
Basically, market makers wiped out all of the leveraged longs.
Now, there is $13.45B in shorts to liquidate on the path back up to $72,166. Now that the longs are gone and the shorts are still in the box, the question is:
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