Riding The Wave News Summary #48
Bitcoin long-term hodlers begin 'distribution' which preceded BTC price bottoms, Deepak Chopra: Crypto is in crisis, but investors need to focus on the long-term, & more
Welcome to Riding The Wave. If you have questions or feedback, please reply to this email. If you are new to the Newsletter, please check out what we provide on our about page and consider subscribing. Within the Newsletter, I provide News Summaries, Weekly Status Updates, & Deep Dive Articles on Specific Topics (Ex: How do I pick which coins/tokens to buy?). More details here
News
Table of Contents
Tweets
Bitcoin long-term hodlers begin 'distribution' which preceded BTC price bottoms
Deepak Chopra: Crypto is in crisis, but investors need to focus on the long-term
After the crypto crash, here’s what industry experts are waiting for next
Yuga Labs Confirms Discord Server Hack; 200 ETH Worth of NFTs Stolen
Tweets
Bitcoin long-term hodlers begin 'distribution' which preceded BTC price bottoms
"The weekly chart on Bitcoin looks nothing short of horrific and so the trend continuation remains. I do think we consolidate a little longer in this range before dropping eventually," Crypto Tony announced on the day in part of a series of tweets.
A further post reiterated a target of between $22,000 and $24,000 for Bitcoin once that forecast drop took hold.
"I am looking for another drop down to $24000 - $22000, but of course distribution takes time. So we may be hovering around this support zones before any drops just yet," it read.
Others planned to make the most of incoming weakness, including popular Twitter account Cryptotoad, which announced a strategy of accumulating at $27,000 and under in what would be a "swing low" for BTC/USD.
"Long-term holders capitulation phase has begun," contributing analyst Edris summarized in one the site's QuickTake market updates released on June 3.
Commenting on a chart of long-term holders' Spent Output Profit Ratio (SOPR), Edris drew comparisons to conditions that preceded generational bottoms in Bitcoin's history. These included the 2014 and 2018 bear markets, as well as the COVID-19 cross-market crash of March 2020.
"Currently, the long-term holders are entering the capitulation phase and are selling at a loss, indicating that the smart money accumulation phase has begun, and the next few months would present a great opportunity for long-term investing in the market," the post read.
It noted that such a capitulation event "usually marks a multi-year bottom."
In a hint that some were already buying the dip, meanwhile, exchange data showed that outflows were beating inflows markedly in recent days.
Specifically, those who bought near the November 2021 all-time highs "appear to be relatively price insensitive," he wrote, adding that the investor profile was increasingly composed of such stubborn hodlers.
"Despite continued drawdowns in price, and a major spot liquidation event of 80k+ BTC, they remain unwilling to let their coins go," he added.
Often when everyone expects Bitcoin to break downwards or upwards the opposite ends up happening which is part of the reason why it is so important to be prepared for all potential outcomes. I would be surprised to see us break down and reach the low $20k range but nothing is impossible so I have some funds kept to the side to reinvest should we reach them.
Deepak Chopra: Crypto is in crisis, but investors need to focus on the long-term
“Right now is the time to think long-term in these financial markets, including crypto. I think emergence happens when you have maximum diversity of people hanging in there creatively, complimenting each other’s strengths and having some kind of a spiritual and emotional ecosystem where they can help each other and that’s happening right now in the crypto community,” Chopra said.
It is unclear whether the recent rout marks the next “crypto winter” — a multiyear bear market that occurs on a cyclical basis for the crypto asset class — though dropping trading volumes on crypto exchanges is one sign that we may be headed in that direction. The last so-called crypto winter ran from 2018 into the fall of 2020 as the value of cryptocurrencies plunged and layoffs were rife.
There are more than 19,000 cryptocurrencies in existence and dozens of blockchain platforms, the underlying technology that cryptocurrencies are built upon. Not all will survive, and some crypto industry leaders expect a period of “creative destruction” wiping out many players.
Mark Cuban, who has become a big investor in blockchain-based technologies, recently compared the crypto crash to “the lull that the internet went through” during the dotcom bubble. He tweeted that there are too many imitators out there. “The chains that copy what everyone else has, will fail,” Cuban tweeted. “We don’t need NFTs or DeFi on every chain.”
Everyone is still waiting with baited breaths to see if we will continue to follow the 4-year cycle pattern we have seen previously or if we will break the trend and see bull/bear market changes independent of the halving. We are also approaching the bottom of the logarithmic growth curve which historically has predicated the range within which Bitcoin tends to move.
Keep reading with a 7-day free trial
Subscribe to Riding The Wave to keep reading this post and get 7 days of free access to the full post archives.