Do I trust this rally?
It might seem weird that NASDAQ and crypto jumped after the 75bps hike. Isn’t the hawkish Fed bad for growth assets?
It turns out it might not be that hawkish. Powell said that subsequent hikes would be data-driven, which means that hikes might not be that high in the future.
It’s not like we’re out of the woods suddenly, but the grim outlook changed to an optimistic one, at least in the short term. Pair that with the upcoming Ethereum Merge, and you get a growth environment for crypto for the coming weeks.
Meanwhile, the EU and Japan are still struggling, and the Fed might even pivot and start printing money to support them this autumn. This event will likely be front-ran, just like the recent FOMC meeting.
Overall, I expect this market to be infamous for hated rallies. Everybody, myself included, would prefer a prolonged sideways in the lower price ranges for comfortable accumulation. But crypto is so correlated to the traditional space that I’m afraid we might not get much more time.
In fact what we might get is another run to an ATH, just like in 2021. Triple top this time?
SIMETRI Portfolio – The mergooor
The Merge narrative continues to prop the portfolio up. Lido has performed pretty well. Kudos to everyone who paid attention to the Pick. Still, taking principal out is recommended once the price reaches 100%. Please keep your eyes on the prices.
Disclosure: The author of this newsletter holds ETH. Crypto Briefing and members of the research team hold some of the Pick of the Month coins mentioned in the table above. Read our trading policy to see how SIMETRI protects its members against insider trading.
