🧐 What the FED just happened?!

Aug 29, 2022 | Newsletter

Happy Monday Mates!

JFC, can’t believe we’re here saying it again but we hope you all stayed safe over the weekend after Fed Chair J Powell absolutely trashed the markets by over $1,250,000,000,000 (yeah, that’s 12 digits after the 1!). We could all be in a better position and that’s why today we’ve got some Monday Morning Vibes right at the bottom to cheer you up.

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In Todays Enclosure

• Chart of the day – Bitcoin on the weekly…yeah it needs to be said
• Big bit of news – What the FED just happened?
• Bitesized bits – A 31-second win for defi, Reddit roll out and Coinbase go POW!
• Hidden Alpha – 🕵️‍♂️
• Monday Mooning Motivation – US Navy Seal David Goggins


🛡Chart of the day: Bitcoin

Zoom out then zoom in as Bitcoin is the talk of the town and despite what many say it still has a lot of control over how the broader cryptocurrency markets react.

A couple of admin notes, Fibonacci lines are drawn from the 2017 lows to the 2021 highs and the blue horizontal line represents the 2017 high.

Okok now the housekeeping is done what we have here is a bear flag and then JP ripped the band-aid off and we have fallen into, what some traders are calling, the “accumulation zone” as we retest the 2017 highs and potentially test the 0.236 support before another short term leg up. Don’t forget that last week we saw the hash ribbons fire the buy signal (re-read here).

RSI is at a pivotal point on this weekly chart as well, bounce and we may see some relief to the above trend line or head down and bounce off the previous weekly RSI lows.

Bitcoin on the weekly timeframe | Tradingview.com

Now let’s zoom out once more and head over to the monthly chart using the Heikin Ashi candles which show the average trend. Yeahhhh, so that 4-week rally we had, still fired up a red candle leading us into closing our 9th straight month of downtrend.

Bitcoin on the monthly | Tradingview.com

Long story short…..we MUST HOLD this area. The good news is we have been making new monthly high lows as we continue through a phase of accumulation.

UPDATE: We have just had our first weekly close in 8 weeks. With an RSI as over-sold as it is on the weekly, we could see a small relief bounce depending on how US markets react.


🔥 The Big Bit of News

What the FED just happened?!

All it took was 8 minutes of Fed Chair J Powell speaking to wipe out over $1,250,000,000,000 from the global markets (that alone is more than the whole crypto market combined!!) with Bitcoin crashing below $20,000, Ethereum sub $1,500 and the DOW sky falling 1000 points.

Not a man to mince his words as J Powell took investors by surprise with a pie in the face and hammered home how serious he and his crew are about regaining control of inflation…..nice one JP!

“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain”.”

Reuters.com

The word “PAIN” re-iterated numerous probably wasn’t the best way to go about it in hindsight and we can expect rates to be hiked another 75 basis points in September.

Sooooo wen marketing?! wen dev do buybacks?! wen moon?! wen wen wen?!

Possibly the mid-terms in November. Notoriously the year of the midterms (this year) is a time of high volatility, and in previous years we have seen the market dip and then come back towards Q4.

Hopium says that we are following the trend right now…however, I don’t think we have ever seen such dire macro circumstances. See below the chart from Forbes and average returns during a Presidential term.

The long story short here is play defensive, build cool stuff and be ready to take advantage of the opportunities the market presents to you.

In other news, insiders made a killing from shorting the markets and exchanges made over 400m in liquidations, not a half bad day in the office that.

PS. JP, please watch your words next time before heading out on the lash with the crew down at Jackson Hole!


🗞 The Bitesized News Bits

Get hitched with Taco Bell as the fast food giant offers one “lucky” couple the chance to get legally married in Decentralands metaverse. You can sign yourself up here and give your partner the wedding they’ve always dreamed of!

A win for DeFi as hackers fail, in 31 seconds, to exploit Aurora Labs Rainbow Bridge and lose 5 ETH in the process.

The Reddit rollout as the discussion board started airdropping Polygon NFT avatars to hardcore community members. Offchain Labs introduced Arbitrum Nova where Reddit will deploy “Community Points” on the chain designed for gaming and social dapps.

Taili-ban crypto, yeaaahh we’ll just leave this one here for you to read. Just in case.

POW! Last week we saw Coinbase introduce cbETH and now, following HE Justin Sun’s lead, will be listing Ethereum fork assets. And so CZ doesn’t feel left out, Binance has also confirmed support for the forks post-merge.


🤝 Heres the Deel

and a quick word from our super awesome sponsors who help us make this all possible

If you are a builder in this space and are hiring a remote-first team take a look at one of our partners, Deel. They allow you to hire, manage, onboard and pay from anywhere in the world without the hassle. Yes, Deel allows you to pay your team in crypto too…


🦧 Updates from the bloc

The latest thread

Here’s a real good thread about real good yield with some real good HXRO’s (see what I did there anon?). It’s a real good read and gives a real good breakdown of how real yield works without being a complete Ponzi scheme.

So you like #RealYield do you, punk? Well, how about I tell you a little story of how to achieve multiple times the industry going APR, in a place that nobody is really looking… No Ponzi emissions, no delta neutral strategies, or anything like that, my old man could do this 👇

The latest podcast

In today’s episode, Grant sits down with @Aerariumfi Co-Founder, @TradingTulips.

TLDR; Aeraium Fi is a Treasury as a Service service on Metis with the goal of being the cross-chain liquidity driver to distribute revenue to holders. Staking will be live in the next few days.

Tune in on Spotify | YouTube | Aeraium Fi website


🎉 Monday Mooning Motivation

A good reminder that setbacks are character builders. Apply it to your internal fire and let it full send you forwards.

Here’s your Monday Mooning Motivation from former Navy Seal David Goggins.

Twitter avatar for @davidgogginsDavid Goggins @davidgoggins

Don’t allow your setback to be your great demise. Put some hate on that motherfucker and allow it to be the very thing that propels you forward!

Stay hard!

Stay Hard Mates!


🕵️‍♂️ Hidden Alpha

Soooo you want a 5-minute head start against the rest of the market, well here are our picks to add to your watchlist:

Stables. It’s a choppy PvP market right now and unless you are a seasoned professional being in stables is going to probably be your smartest move.


🦍 The Ape Enclosure

We’re ready to ape in, at any time. Got a good idea that needs funding? Send us an email with all of the info to [email protected] – Equally, if you would like your project to be featured in our Sponsor Section, contact us and we will see if it is a good fit for our audience!

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