Markets got ya down? Keep clicking; they'll come back.
Traders weren't afraid of lower prices last week, and we logged our 2nd busiest week of the last year at Paradigm. Outright puts, outright calls, put spreads, and strangles were the most common trades.
Today, a well-known crypto name announced that he sold the ETH acquired in an early drop for $0.26. Have to be happy for him; that's a stellar return. He explained the risk/reward no longer justifies holding. Fair argument.
He also based some of his reasoning on the emergence of a U.S.-based CBDC and how that will impact BTC. I agree with that angle as well, and a federally issued (controlled) digital coin will rattle alternative cryptocurrencies. I stress "currencies" here, and crypto is much more than currency.
ETH runs in a different lane than BTC. ETH and its gaggle of imitators like SOL, ADA, AVAX, you name it, are for building, and many don't see them as currency at all. Sure, they have "coins" or "tokens" but their real value is not a transactional currency but building blocks for infrastructure.
Don't throw the baby out with the bathwater. Bitcoin is not the be-all-end-all of crypto. BTC will survive. Its utility may not reach the top of the mountain that many envision, but it's likely to survive in one form or the other. Should altcoins like ETH suffer when BTC is falls? Perhaps not. Should BTC tank when Nasdaq tanks? Perhaps not.
About this BTC/NDQ relationship. Is it because BTC is a technology and Nasdaq is known for tech stocks? Maybe because BTC is a technology and Nasdaq is known for tech stocks? It feels like BTC and NDQ are both just labeled as high-risk assets and dance to the same tune. Shouldn’t be though—different lanes if you ask me.