Defi projects and governance tokens have been running wild, several projects seem to be over-valued. Projects such as AAVE, UNI, SUSHI, UMA have had monstrous rallies this week. Investors all of a sudden feel like the smartest brains in the market. They say a rising tide lifts all boats, we all know the movement of bitcoin controls the entire market. Bitcoin went from $20k to $42k in three weeks, what did you expect to happen afterward?
Experienced investors, market analysts, and traders know how to manage the psychological impact of seeing portfolios go 5–10x in 3 weeks. Noobs, however, have to find answers to questions such as what is my next 100x project? do I rotate to BTC or ETH? how should I structure my portfolio now that am up big? do I dominate my portfolio in BTC, ETH, or Fiat?
There will be several different answers to these questions, ask 10 market analysts these questions and you’d have 10 different answers. This market is still very tiny as compared to other global macro assets, the entire market cap just passed $1Trillion, this is nothing compared to that of Gold. Due to the massive upside in the market, noobs that make mistakes and learn from their mistakes in time will be forgiven, we say you cannot go wrong with Bitcoin and Ethereum, even when you buy the top, ask those who bought the top in 2017.
At the Gamma Fund, we are cautiously optimistic at this stage of the market. With ETH debuting on the CME Futures market tomorrow, we expect wild swings till Wednesday. The market is anxious and several big accounts are playing the safety-first game, that's understandable considering that the top was in when bitcoin was launched at the CME futures market in December 2017. We do not believe the top is in for this cycle. We are very confident bitcoin will touch north of $100k by Q3.
We are long this market but remain cautiously optimistic.
