I can't help but notice the growing attention around real world assets (RWAs), more specifically the relative strength coming from this space and the backing of many prominent funds and investors.
Every week, we create a Power Rankings table that lists the market-cap rank of the top 20 cryptocurrencies. This allows us to see the winners and losers as they climb the market-cap ladder.
GameStop and a number of speculative meme stocks have rallied in tremendous fashion this week. At the same time, we've yet to see this activity catch on in the crypto space.
I think as animal spirits reignite in this speculative securities, we'll eventually see a natural rotation that will bid higher a variety of meme coins in the crypto space.
Today's letter is a look at a variety of individual names and how I'm seeing this entire dynamic through the lens of the crypto asset class.
There's no denying that the trends in crypto have been rather messy over the last few months. Bitcoin and most crypto assets have been consolidating their gains and many cryptocurrencies are either rangebound or trending lower in short timeframes.
Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.
This week, I walked through Bitcoin's price action, the divergence taking place between equities and Bitcoin, the lack of new highs, and two cryptocurrencies that have my attention.
Every week, we create a Power Rankings table that lists the market-cap rank of the top 20 cryptocurrencies. This allows us to see the winners and losers as they climb the market-cap ladder.
Crypto markets are still consolidating; the charts are shaping up constructively, but I want to see further strength to drag us out of these sideways ranges.
For now, I'm remaining patient and scanning for relative strength. That way, when momentum does return, I have a good list of coins that have the potential to be the next leaders.
I've been writing in recent weeks that the best course of action is to adopt a patient approach and let the tape setup more constructively.
Over the last few days, we've moved a step in the right direction. But equally, the high timeframe trends are still choppy especially with Bitcoin still testing its former 2021 highs. While this recent failed breakdown in Bitcoin could be indicative of the ending stages of this consolidation, we are also in the context of a longer-term sideways chop.
When it comes to Bitcoin, I'd like to see a breakout above 73,000 to confirm a new leg higher. But down the cap-scale, we could be seeing opportunities begin to emerge.
Every week, we create a Power Rankings table that lists the market-cap rank of the top 20 cryptocurrencies. This allows us to see the winners and losers as they climb the market-cap ladder.
The big takeaway is that I'm not seeing a big reason to do anything from a trading standpoint.
I want to see an expansion in new highs as well as more sustained dollar weakness to have more conviction in adding to my crypto exposure. For now, I think remaining patient and allowing the market setup is the most prudent course of action in the short term.