“The single most common investment strategy that is shared by the world's greatest investors is to buy good assets at a discounted price. It really is that simple. Much harder to execute”
- Anthony Pompliano, July 2021
We have talked about the Bitcoin Bottom, as well as the Macro Outlook.
The Macro Outlook remains Bullish, and it now looks increasingly likely the $30k bottom is now in. Before the market for digital assets appreciates higher, we expect at least one more retrace. This could be to 37k, or more likely 33k once the markets have tested an upside between 44-50k.
In our last report we discussed the clampdown on mining in China, with the subsequent selling off of Bitcoin as weaker miners sought to exit, while the stronger miners were raising capital ahead of moves.
The hash rate has now recovered to levels before the disruption in mining in China and is again stable.
We currently see Ethereum looking very strong ahead of it’s August 4th “London Upgrade”.
A project we have been monitoring carefully is Polygon (MATIC), primarily for the Layer 2 scaling solutions it offers. The Polygon team recently announced a partnership with Coinbase (the largest regulated crypto exchange in The US). We understand that MATIC will be listed on Coinbase US, and these listings are almost always followed by strong price movements.
The below shows the weekly Bitcoin, and illustrates the 9 simple moving average (yellow line). Whenever Bitcoin is in a bull run, Bitcoin is ALWAYS above the line. Last week the market closed above it (white circle) for the first time since Oct 20, 2020 when Bitcoin began it’s run from 11,500 to 64,000.
