Disclaimer: I am not a financial advisor, everything on this report is financial opinion. Please consult your financial advisor before participating in crypto

Overview

• Altcoins are growing up

• Market Update

• Major Crypto News

• NEWBIES: Lesson of the day

Insight

Altcoins are growing up.

High-performing smart contract platforms show signs of decorrelation from Bitcoin and Ethereum. While the two giants are struggling, platforms like Terra (LUNA), Fantom (FTM), Avalanche (AVAX), Polygon (MATIC), and Cosmos (ATOM) are all gaining a lot of ground. If it weren’t experiencing recent network issues, Solana (SOL) would likely be included in the list too.

Since November 6th:

• ETH 3388 -30%

• BTC 42.8k -39%

Below are the LUNA/BTC, FTM/BTC, and ATOM/BTC daily charts comparing assets vs. Bitcoin.

Terra (LUNA) has gained 124% over Bitcoin since the sell-off that began on Nov 9.

Fantom (FTM) has gained 48% on BTC in the same period.

Cosmos (ATOM) has gained 70% on Bitcoin.

The assets above have been atypically bullish during a historically bearish market scenario. Historically, during Bitcoin sell-offs, the entire market begins to sell-off. but strong projects have ignored Bitcoin’s bearish trend that has persisted for two months.

It will be interesting if this trend continues, and it could signal the crypto market is maturing and not so reliant on Bitcoin and Ethereum price action. The stock market works similarly, as some stocks begin to climb while others are falling.

A decorrelation of crypto projects to Bitcoin/Ethereum would ultimately be healthy and a vital sign of maturation. On a related note, Chainlink (LINK) is becoming a solid hedge when crypto struggles and was up +7.90% when 99% of crypto assets were down yesterday.

A heed of warning; don’t expect altcoin prices to survive a complete market sell-off. Most assets will correlate during these events.

If you only held Bitcoin, your gains would be at 0% in the past 365 days, while a dozen or smart contract platforms have gained 400–1000% percent in the same period. The decorrelation highlights that maintaining a diversified portfolio in crypto is becoming essential.

Market Update

Bitcoin (BTC) hit a low of 42.7K today after a -5% drop yesterday when then FED reiterated bond tapering and interest hikes during the FOMC minutes. A few analysts have noted the similarities between the current dip and the accumulation zone that bitcoin incurred through June and July this year. Chart below.

Chainlink (LINK) is proving a good crypto asset to hold when the rest of the crypto market is falling. Volume 3x-ed in the past two days, and LINK was up +7.90% yesterday. LINK sits at 25.20.

Solana (SOL) continues to struggle after another network blackout two days ago. This is the third network issue in two months, questioning the network’s reliability. SOL sits at 151.50. I would still say this is an excellent area to DCA.

A few protocols are recovering quickly in today’s market session.

• ADA 1.28 +4.43%

• MATIC 2.23 +2.50%

• MANA 3.21 +10.50%

• ONE .30 +8.60%

Bitcoin Fear and Greed Index: 15 Extreme Fear

“Bitcoin” Google Trends: 29 (low for the year)

Bitcoin Options Max Pain: 46K

How to use The Fear and Greed Index for investing

Market News Photo by Bank Phrom on Unsplash

• Aave is set to launch a permissioned pool named Arc with 30 institutions set to join. The news could bring buying pressure to AAVE, one of DeFi’s flagships that contains $13.7 billion in TVL.

• Samsung has entered the metaverse opening flagship 837X store in Decentraland. In addition, Samsung announced their TVs would integrate an NFT marketplace. The electronics company is securing an early presence in crypto and the metaverse.

• Congress is preparing a sub-committee on Bitcoin’s mining environmental impact. The participants are yet to be determined, but the hearing could occur as soon as the end of the month. I believe they will be surprised to find that most Bitcoin mining is green, and mining can help solve some environmental impacts such as natural gas venting.

NEWBIES lesson of the day: lesson 3

Bitcoin Characteristics

Photo by André François McKenzie on Unsplash

This lesson is borrowed from the Nov 22 report. It feels appropriate to note some characteristics of Bitcoin before the lessons move forward.

Bitcoin is a global digital decentralized currency that is entirely digital and cryptographic by nature that began in 2009. It uses cryptography to verify transactions through nodes located around the globe. The transactions are then recorded on a public ledger called a blockchain. If one explores the elements of bitcoin versus our current form of money, you begin to see some of its benefits.

Some aspects about Bitcoin that we will quickly explore.

1. Decentralized

2. Fast and easy to send

3. Open-Source

4. Permissionless

5. Transparent

Decentralized

One of the most powerful bitcoin traits. Since its nodes are distributed globally by millions of miners, no one entity can stop it. Therefore, the free market is the only way bitcoin price is determined.

Fast and easy to send

Bitcoin can be sent across the globe at a low price. With the Segwit upgrade, millions of dollars in Bitcoin can be sent for less than $5. Furthermore, transactions are peer-to-peer, and no third party is needed to verify transactions. Bitcoin transactions can be processed in seconds.

Open Sourced

Developers worldwide can participate in the constant development and improvement of the bitcoin network. In addition, the recent Taproot upgrade will now allow application of smart contracts on bitcoin.

Permissionless

No third party is needed to send or receive bitcoin. Unlike most financial payments that require bank approvals, BTC is completely permissionless. No personal information is collected to use the bitcoin network. It is available to anyone with an internet connection.

Transparent

All transactions are recorded on a public ledger. People that utilize bitcoin can remain anonymous, but transactions are all recorded on this ledger. Bitcoin Explorer Link.

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Thanks for reading fam!

Gabi

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