Planning entries into Nexo, we look over historical buy signals and and compare them to presency, not yet.
Three are very strong buy signals formating for Crypto.com coin CRO.
Current situation is still neutral in short term but long-term fundamentals are bullish.
US stock marketcap is about 50T USD while crypto market cap only 2.4T USD, about 4%. In 2017-2018, the US stock marketcap was about 25T USD while crypto marketcap only about 600B USD, about 2%. Given increasing adoption rate, the proportion could increase to 8% this time of total US stock marketcap. Ceteris paribus, the total crypto marketcap could double...
The last cycle 2014-2018 resulted from about 6B to about 600B -- 100x. The next cycle 2018-2022 could transfer wealth from about 100-160B to what amount? Important words to learn: 1. JOMO: joy of losing out 2. FOMO: Fear of losing out Be patient.
This demonstrate the imparmanent loss in a LP pair where the other has higher variance in comparison to the other crypto coin. The imparmanent loss can become zero if you are patient in holding the pair and the coins revert back to each other. Ps. I use the following calculator in demonstrating this (dailydefi.org).
The return rate of SHIB-CRO LP pair is 0.2% per day, currently in Beefy.Finance. The compound interest for 60 days is 12.7% exp(0.002*60) = 1.12749685158 close to 0.002*60=12%. So with this LP pair with 60 days, you would not make a breakeven despite the daily return due to impermanent loss.
In 2016-2017, we had 3 major retesting of RD levels. Now in 2021, we are doing it first time. The question is how many times we are going to test the RD this time?
BTC testing inflection points are crucial points for downtrends and uptrends: the first order inflection points are not that useful but the second order inflection points are.
During market beltdown and fear, assets fly from altcoins to stable coins such as BTC.
Fibonacci retracements in the Bitcoin cycle are well explained by Crypto Caesar, "The Significance of Fibonacci and the Bitcoin Cycle" in Youtube. An additive approach is to acknowledge diminishing returns to the model. Diminishing returns would entail that the ATHs would be lower flattening down the appreciation over time. This would have serious implications...
Diminished returns and extended cycles: will BTC ATH be reached in March 2022?
Metaverse hype turned certain Crypto assets very luctrative to form long positions, it is interesting how long this will last or is this short-term phenomena.
Expecting 50% correction down with Kadena. The bearish sentiment with Kadena last been about 70%. From historical perspective, we can expect about -50% correction unless bull fundamentals change.
Hypothesis is that the drawdown risk will diminish over time. The drawdown risk has not changed from 60% to about 50%.
The drawdown risk seems to get less and less, the older the ethereum becomes. The larger its market cap, the less drawdown risk arises.