October Market Update 🧟♂️🚀🌖
Crypto & NFTs Rise from the Dead for Moonvember
Global macro continued to go in the right direction with liquidity increasing with government spending, inflation falling, and central banks pausing rate hikes while labour markets continue to show strength. We have likely seen the last of the hikes and rates top. However, this could be impacted by China dumping Treasuries. Barron’s just talked about getting into bonds so it’s likely not the right time to. Always be weary of ideas that hit magazine covers, and management consultants. Hedge funds continue to add shorts and are underexposed to risk assets which could cause a massive short squeeze into year-end. Crypto & NFT sentiment flipped mid-October and entered rally mode. Bitcoin is at its highest level since May 2021 and has completely decoupled from equities. Ethereum, Solana, Link, and others are breaking out of 18 month trading ranges. Blur is up 40% and Solana is up 100% since I wrote them up 1 and 2 months ago, respectively. Ethereum has been lagging with the ETH/BTC ratio at a 30-month low - this will likely violently reverse over the next year. The Blue Chip NFT index has staged the strongest rally in over a year and may have staying power with sweeps occurring, Blur Season 2 farming ending on November 20th, and new liquidity protocols like Flooring Protocol launching.
My top investment ideas are CloneX, Otherside Koda, Checks, Opepen, Otherside, RTFKT Animus Egg, RTFKT MNLTH X, Bored Ape Yacht Club, Doodles, Ethereum, Bitcoin, Solana, Blur, and ARKK.
RTFKT x Nike Air Force Ones have blown away sneakerheads and Dunks just forged with delivery in June. Vial evolution is up next and I think MNLTHX may be involved. RTFKT has crushed it with physicals this year so its time to move to digitals like Animus, Pods, and Clones. Project Animus update needs to happen soon (just updated OpenSea CloneX page with Animus Egg wallpaper).
Yuga’s Apefest is happening now in Hong Kong and BAYC/MAYC have had a nice price run. Expecting Otherside updates during Apefest.
Opepen is heating up with the latest collaboration with Snowfro.
The next investment idea will be out soon. If you haven’t already, please upgrade your subscription now to receive it when it is published.
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.