Crypto Never Sleeps
Weekly Recap
Outside of a Sunday-night dip, cryptoassets have performed robustly, with bitcoin reclaiming the $40k level and ether reestablishing its perch above $3k.
This week, crypto investors ventured further out on the risk curve as DeFi and Web3 sectors outperformed currencies.
Interestingly, the privacy sector recorded another green weekly candle, as privacy-focused names including Monero ($XMR), Zcash ($ZEC), and Decred ($DCR) each increased more than 15% over the last seven days.
Source: Messari
A Tale of Two Halves?
In light of the constant sideways chop that seems to have persisted for the past several months, we revisit the meme below, pulled from our 2022 annual outlook. Given the macro uncertainty and intermittent on-chain demand, we thought this would be a tough Q1 and Q2 for strictly long-only investors. This memetic prognostication has undoubtedly come to fruition as crypto prices have struggled to find directional consistency.
Applying the framework outlined in the previous Weekly, it is reasonable to expect downside volatility around QT, and buying put protection on long crypto positions could be a helpful way to mitigate this risk.
Source: Fundstrat Digital Asset Annual Outlook 2022
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