The result of the Fed meeting is that the US central bank will start reducing its bond-buying program. This means the quantitative easing should end by the middle of 2022, in about 6-9 months out; but the Fed did say they remained flexible. On the news, most equity indexes surprisingly rose because the comment was perceived as signaling a strength and confidence in the economic recovery.
In the crypto space, it seems that things are moving at a pace of their own but definitely enjoying the general risk-on tilt.
The thing that shocked me this morning is DOT. For the longest time, and I mean two three years, my biggest allocations were BTC, ETH and VET. And then DOT battled it out with ADA below. Now, I can see that DOT has blown past ADA and even just surpassed my VET allocation. There’s some massive strength here.
It’s a dynamic you can observe with other coins, by the way. There’s an enthusiasm for a new generation of alts but with a different feel to the ICO craze of 2017. Coins like MATIC, TERRA, SOL, MKR… People are looking at the way those plug in or support the new blockchain ecosystem and they’re gaining massive momentum.
This isn’t to take away from the majors that are definitely advancing and leading. BTC is currently hovering around $63,000 and ETH is steadily holding around recent new all-time highs at $4,600. Incidentally, I mentioned ADA earlier and I’m still super bullish about this coin, it will just follow on its own time.
Something that is bullish for the space as a whole is the stablecoin supply which is hitting new all-time highs and suggests there’s just a ton of money (about 75 billion) sloshing around and ready to be used to push crypto higher.
On the other hand, a chart from Glassnode tracks long-term holders and unrealized profit, essentially investor’s sentiment. And there is strength and capital, but prices are high and so profit-taking could push us back down for a revisit into anxiety, fear and maybe capitulation.
On the news side and maybe more supportive, SEC is looking to schedule the Grayscale Bitcoin ETF conversion, and could do it before December end. From where I’m standing, with more products available to more investors, I think the pouring in of capital isn’t stopping anytime soon.
I reply to all comments on my YouTube channel; if you have any questions, feel free to head over there and shoot🙂
Follow Me On YouTube On: https://www.youtube.com/c/JustindAnethan
Follow Me On Twitter On: https://twitter.com/justindanethan
Sign up on EQONEX via: https://tinyurl.com/y7yyj4xs
