Welcome back to the Trader Top 9! It’s been another quiet week in bitcoin although with some strong regulatory news and the potential beginning of a small move. Let’s dive in!
9. First, while much of the time Twitter is just a great place for opinions and discussions, sometimes you can actual learn things. This primer thread on bitcoin addresses is a great example.
8. Now, let’s turn our attention back to the DeFi and “yield farming” craze. In case it wasn’t clear that this was a fast growing space, it took 5 months to grow from $1B to $2B total value locked in DeFi applications, but only 2 weeks to grow from $2B to $3B.
7. What’s more, all this activity seems to be having some impact on the price of Ethereum, the native token of the blockchain underlying DeFi.
6. Bitcoin meanwhile, continues to wait to do something…anything, in fact!
5. Even folks from outside the crypto space are noticing that the setup seems promising.
4. From a fundamentals standpoint, bitcoin and the crypto industry as a whole got good news when the US Office of the Comptroller of the Currency announced this week that US national banks are allowed to custody crypto.
3. Still, in the broader markets many people can’t wrench their eyes off of what they perceive of as either distorted asset price inflation…
2. …or the beginning of a new global liquidity phenomena
1. That difference of perspective resonates in the context of this threat, which serves as a great reminder to keep track of what part of our understanding is colored by fundamentals vs. expectations