Alt-man's Return

Another Sam is back, another alt is pumping.

Nov 20, 2023

Weekly musing: good things take time.

What a time to be a bull. Yes, BTC and most alts haven’t yet overcome their Nov. 9th high so far (SOL and DOGE are perhaps the only exceptions among the majors). But the market remains upbeat, the weekly close was solid and funding rates have reset.

So, what’s next? We’re still in ETF anticipation mode and the normies aren’t even back. As Alex Krüger reminds us, the native crypto ecosystem has enough critical mass to easily kickstart a bull run after a couple of years of depressed activity.

However, it’s also the case that institutions are front-running the ETF, given the record high volumes in CME options. Remember CME is a derivatives giant which launched the infamous BTC futures contract in Dec. 2017, a cycle peak.

Now, what about the next couple of months? The ETF will likely be approved. Will it be a sell-the-news event? Will there be enough demand after to continue the pump until the halving? Whatever it may be, you need a plan. Do you have it?

Moreover, now the market’s attention is on the leading orange coin and on ultra-low-cap alts. But you shouldn’t forget there’s more to crypto and that traders will eventually cycle their profits into other niches and ecosystems. Eventually…

Because, to conclude, and as said in the last newsletter, I’m seeing strong euphoric emotions already in my Telegram groups. And euphoria breeds FOMO, which can be good. As long as you have a plan and don’t chase every pump!

Talking about pumps, the news that the US Department of Justice is seeking over $4 billion from Binance to settle the long investigation into CZ and its popular exchange just leaked. If this happens, the markets will be stoked with the truce!