January Market Update 🧑🚀
The Return of Risk-On
What a start to the year, it’s as if on Christmas Day everyone decided to flip bullish and buy. Animal spirits at their finest. This is in line with last month’s commentary published on December 24th.
In several months we will look back to this exact moment and it will be so obvious that this was a rare buying opportunity.
BTC, ETH, ARKK, Tesla, and other assets that have been crushed are up 35-75% this month. US inflation came in right on target and continues to drop precipitously and the Bank of Canada just signaled a pause after its last rate hike this week (25bps). The FOMC is next week and expectations are now for the Fed to hike by 25bps and signal they are either going to do one more hike of 25bps and then pause or pause after this hike. The latter would catalyze markets to ATHs. I think the global pivot is finally here. We should see all central banks pause for 6 months and then begin to aggressively cut. Markets always price in the future and look out 6-12 months - now they are starting to price in rate cuts and stimulus. I think we see a slight pull-back in risk assets before heading much higher in the next few months.
Currently, my top investment ideas are CloneX, Mutant Ape Yacht Club, Otherside, Ethereum, Bitcoin, and ARKK.
RTFKT has launched pod burning and is gearing up to execute on a new strategy this year that aligns more with what holders want. I think this is the best opportunity we have seen to enter the RTFKT ecosystem with prices depressed coming off last quarter’s FUD.
Otherside’s floor is rising ahead of expectations of more leaks in the coming weeks leading up to the next Trip to the Otherside in March.
BAYC‘s Trial of Jimmy the Monkey has been dominating Crypto Twitter (CT) for the last couple of weeks. The Sewer Pass used to play Dookey Dash, a web 3 infinite runner style game, has pumped in price and is up almost 2x from the lows. The game is engaging, lucrative for Yuga, and a lot of fun. The hype should continue into mid February when they will evolve into another NFT.
Moonbirds are Expected to announce the launch of Mythics any day now.
Doodles finally announced the launch of Doodles 2.
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.