February Market Update 🐝
The Calm Before the Swarm
After a monster rally in January, February has mostly been choppy and quiet for price action with an expected slight sell-off after record retail flows into equities. Rates have been moving up gain with new fears of a reversal to a higher Fed rate hike next month. However, inflation continues to cool as expected and the recent sell-off in natural gas married with expectations for the lagging shelter indicator to finally reverse are setting the stage for negative inflation over the summer. Also, we know not to fight the Fed. The Fed wanted to increase rates so they used metrics that supported the narrative. Now they want to lower rates and go back to QE so they will adjust those metrics to support the new narrative. Furthermore, China is back on the QE train and is likely a forward indicator for where the US goes next. My Spring bull thesis is still in full-effect. Although I’m cautious about a lot of the assets that have rallied aggressively. In Web3, the fundamentals are getting stronger with mass liquidity entering the NFT space riding on a wave of strong incentives from Blur. Also, Coinbase just announced they are building a Layer 2 blockchain on Ethereum to onboard the next billion users. Their slogan “Onchain is the new Online”. I have been adding to my Ethereum position and am watching blue chip NFT PFP projects, NFT Open Edition projects, and new Digital Art projects very closely.
My top investment ideas are CloneX, Mutant Ape Yacht Club, Dookey Dash Sewer Pass, Otherside, Moonbirds, Ethereum, Bitcoin, and ARKK.
RTFKT has been very quiet since the pod burn about a month ago. Something is coming…
Otherside should be announcing the details for the next “Trip” in the coming weeks.
Dookey Dash is back with an acid trip like twist on the OG game from a couple weeks ago. It will be live until March 8th when the Summoning will finally happen - evolution to a new NFT.
Moonbirds cancelled their upcoming Proof of Conference event and once again are facing a lot of FUD from the community. On March 2 they are expected to address concerns and reveal info on new projects like Mythics and Highrise.
Doodles’ Doodles 2 reveal was met with a lot of criticism and disappointment as they chose Flow (rather than Ethereum) for the blockchain. They are expected to roll-out their roadmap for the OG collection on Ethereum next week.
The next investment idea will be out next week. If you haven’t already, please upgrade your subscription now to receive it when it is published at the end of the month.
To the moon and beyond,
Andrew
Disclaimer
The content of this letter is for informational and entertainment purposes, and should not be construed as personal investment advice.