Crypto Markets Still Strong Despite Sleepy Sideways Trading

Yet another week of sideways action is behind us, with likely more bearish sentiment coming our way in the upcoming week. Despite this, our crypto team is finding more and more bullish fundamentals.

This push and pull is keeping the crypto markets stuck in range-bound trading. Now that volatility is dropping, we can gather that the worst of the selling is over, and the weak hands are out.

So, let’s take a look at those bullish fundamentals.

The hottest tweet this week goes out to us celebrating yet another Cardano (ADA, Tech/Adoption Grade “B-”) win:

ADA is a promising project that keeps a steady pace of growth, which is only further amplified by the Alonzo upgrade. Altogether, Cardano is now a few steps closer to smart-contract functionality.

Second runner-up is a tweet about fear, uncertainty and doubt (FUD) coming from the usual suspects: JPMorgan Chase & Co. (NYSE: JMP) and the crew:

This kind of claim can be made only by those who fail to grasp the basics of the technology behind cryptocurrencies and their evolution. Layer-2 (L2) solutions have been developed to relieve the Layer-1 of many cryptocurrencies, offsetting some functionality to a sidechain or off-chain, as is the case with the Lightning Network, Bitcoin’s (BTC, Tech/Adoption Grade “A-”) L2 solution.

Speaking of the King of Crypto, Bitcoin keeps rocking on the steady waves of consolidation and sideways action. Well, it’s good to know that this lethargic action hasn’t really affected investors who are able to see the big picture.

Namely that, since the low established on March 20, 2020, BTC is up 539%, ETH is up 1,630% and RUNE up 12,488%. So, there’s insane upside potential welling up under all this correction, and many investors have been filling up their bags and preparing for what could be the biggest parabolic rise the crypto world has ever seen:

Furthermore, BTC isn’t just a great asset to HODL. It’s also the best hedge against inflation in the world:

All this may be less apparent to an average investor, but institutions are very well aware of it:

They go about spreading the FUD while stuffing their bags full of cheap crypto dropped by weak hands jumping ship. It’s almost as if the correct strategy is to “get in now while the gettin’ is good,” as we said in this tweet from Monday:

But it’s not just institutional investors and giants of traditional finance who are doing their worst to topple crypto. Governments and global organizations are also doing their part. Their weapon of choice: the antipode of crypto, central bank digital currencies (CBDCs).

This kind of hypercentralized and authoritarian approach to finance is not only dangerous for crypto, but also for personal freedoms, as we stated in our tweet:

BTC isn’t the only dog in town, though. Although the price of Ethereum (ETH, Tech/Adoption Grade “A”) has also taken a nosedive since its $4,000 high, it seems that investors are as bullish as ever … especially when it comes to the upcoming ETH upgrade.

So, there you have it. Markets seem to be stagnant, and it almost seems as if the bullish argument for BTC is getting weaker every day. However, we still urge you to remember one important fact:

The longer crypto trades sideways, the bigger the next move will likely be.

Stay safe and trade well,

Jurica Dujmović