When it comes to the world of cryptocurrencies, it is easy to feel like you are trying to explain them to your grandpa. Fortunately, I have a partner who stays ahead of the game and sometimes, I think he is moving just as fast as the market itself. Always on the move, he is constantly juggling between blockchain breakthroughs, market swings, and his next big idea.
I will be shooting him a quick email tomorrow to catch up but in the meantime, I wanted to share his insights in his latest report. His perspective on the potential trend breakout to the upside aligns with what I have been expecting as well.
Here is a section:
September was another volatile month for the cryptocurrency and digital assets markets and continued the choppy conditions we have experienced since April. The first six days of the month were characterized by a significant sell-off, leading to BTC and ETH intra-month losses of 11% and 14%, respectively. A significant rally then ensued over the next two weeks, only to fizzle out with another sell-off into month end.
The market as represented by the CCI30 Index was up +8.6% and BTC was up +7.4%. The market has remained range bound for the past six months. It has traded sideways in a range between USD53,000 and USD70,000.
However, this range has been consolidating with very strong support for BTC at USD60,000. We do expect the market to break-out of this channel to the upside and achieve new sustained all-time highs with further liquidity in the form of interest rate cuts and QE expected.
We continue to remain overweight the large cap tokens and wait for the opportunity to increase our altcoin exposure. As discussed previously, as the spot ETF catalysts play out, we intend to shift out of our substantial BTC and ETH position into altcoins and this market correction is the opportunity we have been waiting for. Our funds remain strategically positioned to take advantage of this in Q4 2024.