Riding The Wave News Summary 218
Curb your enthusiasm — crypto prices aren't going to move as quickly as you think, VC blockchain and crypto funding rises in Q4 2023: Report, & more.
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Curb your enthusiasm — crypto prices aren't going to move as quickly as you think
Bitcoin's Stall at $52K May Foreshadow Imminent Pullback Before Higher Prices: Swissblock
Bitwise Chief Investment Officer Foresees Bitcoin Price Surpassing $80,000 Amid ETF Boom
Tweets
https://twitter.com/Excellion/status/1758580273225269523
https://twitter.com/JSeyff/status/1758585207794348507
https://twitter.com/GameofTrades_/status/1759219970003624152
https://twitter.com/GameofTrades_/status/1759314341688431088
https://twitter.com/GameofTrades_/status/1759295467639480633
Curb your enthusiasm — crypto prices aren't going to move as quickly as you think
February has been great for Bitcoin — there’s no denying it. Even the most cautious, poker-faced of investors would have found it hard to contain their excitement as BTC stormed past the $50,000 milestone.
So optimistic was the sentiment that prices barely even flinched at the January CPI report — a 2% drop is nothing in crypto terms. Comparisons to the 2021 bull run were naturally drawn, fueling a fresh set of “Bitcoin at $100,000” predictions.
This excitement, however, should be tempered. On close examination, the current rally appears to be largely psychologically driven. The bigger picture indicates we’re in for a lot more of the boring price action that preceded it, and that 2024 will be altogether different from the euphoria of 2021.
Markets have an affinity for round numbers, and this holds all the more true for crypto, where everything is exaggerated. On Feb. 9 we saw not one, but two such figures announced.
Firstly, Bitcoin spot ETFs the much-publicized gateway to cryptocurrencies for TradFi institutional investors — hit $10 billion in assets under management in less than a month of trading. Then, secondly, the S&P 500 read “big tech and finance” reached a historic milestone at 5,000 index points. What lies beneath and before these price moves tells another story.
Though macro and not inaccurate, this is a myopic take. A look at the realized volatility of Bitcoin over the years strongly suggests that narrow ranges and caution aren’t merely a reflection of the current environment, but a sign of steady progression towards stability that contrasts sharply with the wild fluctuations of the previous bull cycle, and is here to stay.
This isn’t to dampen the bullish sentiment of the past few days. Rather, it’s a sober take on current events that, though unexciting compared to crypto's typical “moon” predictions, calls for a coming-of-age celebration. As an almost mature market, it’s time to curb our enthusiasm and channel that energy toward patience. A new normal characterized by consistently tame price action is here for Bitcoin and Ethereum.
VC blockchain and crypto funding rises in Q4 2023: Report
Venture funding for crypto-related companies totaled $1.9 billion in the fourth quarter of 2023 — a 2.5% increase from the third quarter — according to a report from PitchBook. It marks the first time venture capital (VC) investments in crypto startups have risen since March 2022.
PitchBook highlighted that the major crypto ventures securing funding primarily center around financial and technological solutions. These include tokenizing real-world assets on the blockchain, such as real estate and stocks, and building decentralized computing infrastructure.
Some prominent fundraises in the quarter involved crypto exchanges Swan Bitcoin and Blockchain.com, which secured $165 million and $100 million, respectively.
The increased interest in crypto from financial institutions can be attributed to the launch of the first spot Bitcoin exchange-traded funds (ETFs) in the United States in January, according to PitchBook’s report.
Bitcoin's Stall at $52K May Foreshadow Imminent Pullback Before Higher Prices: Swissblock
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