Crypto Report - ETH supply shortage; SOL

Published:

20 Oct 2021 11:54 ET

[The Crypto Report is a subset of Market Lab Report.]

Ethereum's supply shortage has grown more severe. The amount on exchanges continues to shrink. This is bullish for ETH. With bitcoin hitting new all-time highs along with ethereum's favorable metrics, ethereum should also hit new highs in the coming days to weeks. Top alt coins should then follow ethereum's lead if history is any guide. Solana (SOL) is looking constructive and is likely to outperform ETH during this bull market given its metrics.

Caveats:
=A 20% correction in stocks could occur due to continued delays in the next stimulus package. While the recent correction in the stock market did not drag down bitcoin, but instead buoyed bitcoin for the first time suggesting bitcoin is starting to decouple from stock market direction, the correction in the major averages was mild. Any sharp stock market correction would likely pull everything else down including bitcoin and other cryptos.

=Watch futures funding rates. So far, they remain subdued which suggests this bull run is not close to overheating as of yet.

Like what you read?

Let us help you make sense of these markets by signing up for our free Market Lab Reports:

This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.