#4: The "January Effect" in Full Effect
The first weeks of the New Year have highlighted a very important lesson I have learned repeatedly over the years: No one truly knows where the market is going next, and it is foolish to try to time it.
Through the last weeks of December, my timeline, social circle and everything in between was calling for more fallout and another shaky year ahead for Crypto.
Instead, on the back of the first meaningful price rise in recent memory, sentiment and optimism have taken a complete 180. This past week I have seen:
Twitter users who were calling for the end of Crypto or lower prices now saying that the bottom is in and are back to their 100k+ BTC predictions…
Countless friends who showed no interest in the space the last several months reaching back out to make sure their portfolio is positioned correctly for the return of bullish market conditions
A complete shift in sentiment covering the space from social media and news outlets
“Your average Wall Streeter, faced with nothing profitable to do, does nothing for only a brief time. Then, suddenly and hysterically, he does something which turns out to be extremely unprofitable. He is not a lazy man.” - Fred Schwed
Weekly Price Performance:
Top Stories:
Amazon Web Services (AWS) Partners with Avalanche to Scale Blockchain Solutions for Enterprises and Governments (Tech Crunch)
This will allow developers to quickly set up and control their own Avalanche networks and use them for different things.
A company that makes clothing could use Avalanche to track the materials and production process of each garment from the factory to the store. This would create a secure and transparent record of the entire supply chain which could be shared with customers, suppliers, and other stakeholders.
With Amazon Web Services' support for Avalanche, it will be easier for the company to set up and manage the necessary network and infrastructure to implement such a system.
Ethereum Hits 500,000 Validator Milestone (Blockworks)
Validators are the ones who check and make sure that the code is doing what it's supposed to do. Like a teacher checking your homework.
These validators are essential in ensuring that the Ethereum network is secure and works properly. They work together to process transactions on the Ethereum blockchain by making sure that the rules written in the smart contract code are being followed.
With ever growing numbers in validators, the ever growing trust in the Ethereum network itself is promising.
FTX Says It Has Located More Than $5 Billion in Cash, Liquid Assets (WSJ)
“Located”?
Crypto Firms Genesis and Gemini Charged by the SEC with Selling Unregistered Securities (CNBC)
The saga continues…
Coinbase Lays Off Another 20% of its Employees (NY Times)
Layoffs in the sector have not slowed down to start the year
Coinbase Insider Trader Gets 10 Months in Prison (Blockworks)
First of its kind case, convicted of buying tokens that were about to be listed on Coinbase (as this is usually a very positive price catalyst)
Thread / Read of the Week:
Visual of the Week:
This Week:
Stock Market closed yesterday for MLK Day (1/16)
Wednesday (1/18):
PPI: Inflation metric at the producer / wholesale level
Retail Sales: Help shower consumer spending + sentiment
Quieter week of events / news, but never a boring week in Crypto…
Final Thoughts: Are We Out of the Woods?
Likely not, but as I said, no one (including myself) truly knows.
I personally will continue to:
Block out the noise, keep researching and dedicating time to this space with a long-term mindset
Invest in teams and protocols that have continued to deliver during the bear market and seeing increasingly positive trends in important metrics such as:
Revenue / Profit returned to holders
Active network users
Market share / Addressable Market
Promising future roadmap (markets are forward-looking)
Stick to my internal price targets and take profits accordingly