Bitcoin bears and bulls fight it out for the future of crypto on episode #20 of Alpha Bites.
JJ starts the Market Update reviewing macro headwinds that continue to challenge Bitcoin and the wider crypto market, including a stronger #DXY, increased volatility (#VIX) and no end in sight to the rate hikes.
While the recent impulse to above $28K flipped some shorter timeframes to support, Bitcoin technical analysis 200-day death cross is still valid and investors should remain cautious.
Ray notes that #BTC continues to trade in range and Ben Lilly adds that little has changed for the Fed to pivot away from current policy. There is little reason to expect interest rates to drop and the market needs to prepare for #higherforlonger (did someone say 7%?).
On this weeks' Beta play, the team asks and answers whether Polygon’s MATIC is a beta play to Ethereum with a surprisingly mixed review from the team.
Kodi opens with a review of the Network Strength, noting the advanced technology supporting Polygon's infrastructure stack and the key investments in zero-knowledge (ZK) made in the last year. While Polygon advertises as a layer 2 solution for Ethereum, it's an entirely separate chain (not a roll up) and has it's own security model.
Ben Lilly rates Polygon's Monetary Strength ahead of Cosmos and Avalanche but still notes it is quite a bit behind Ethereum. MATIC has a steady supply, it is being used beyond holding in wallets, and the credit markets are functioning in a rational manner. All good signs.
On price , JJ argues that Polygon still hasn't found a bottom for it's USD pair but the ETH-MATIC chart is looking promising. On the other hand, Ray notes the opportunity cost of holding MATIC over other tokens (not just ETH) is likely too high to justify the investment at this juncture.
The team is split on whether #matic (soon to be POL) will outperform ETH in the coming bull market.
Next, Kodi reviews three projects in the Like / Spike Segment:
* Ethereum futures ETFs launch to less than $10 million in combined volume on their first day
* Frax announces plans to enter the Real World Asset (RWA) market and give out yield for FRAX like MakerDao does for DAI
* Monad announces the “most performant EVM architecture to date”
On the radar, Ray shares his on-the-ground take from the WDMS 2023 Conference where he spoke with miners about how they are preparing for the Bitcoin Halving in 2024. While responses ranged, key themes emerged around price agnostic mining, diversified revenue strategies, and the possibility that a supply shock wouldn't hit, delaying a price jump for 6 to 9 months.
Lastly, the team is asked "what is the killer app for crypto" and the answers range from stablecoins, better money, Social apps and NFT.
TL:DW - as always, we live in interesting and unpredictable times. Be patient, don't overextend yourself, and watch for opportunities on the horizon. And keep some dry powder. -- Marconi
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This content is for entertainment purposes only. Nothing shared during this broadcast is or should be considered financial advice. The views and thoughts shared here are simply opinions. Do your own research and consult a registered financial advisor before making any investments.
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