Will Crypto Get the Santa Claus Rally?

October 22, 2021

|In Weekend Recap

|By Osprey Team

Historically, the 4th quarter is a strong period for asset prices in general and Bitcoin specifically.

While the sample size is small (N=9), the effects are resounding. We checked in with Stock Trader’s Almanac Executive Editor, Jeff Hirsch, to get his take on the chart below and he quipped,

It’s still too small of a data set for a statistically significant effect, but it does look like it’s tracking the best months of the year. Maybe we get that Santa Claus rally in crypto.

And here’s that seasonality chart via Topdown Charts —

Will Q4 follow the historical average? Stay tuned.

? Buy The Rumor, Buy the News?

The old saying goes,

Buy the rumor, sell the news.

Recall when El Salvador officially adopted Bitcoin. Crypto got bought leading up to the event and then sold off hard for three weeks on the news. BTC fell from 52K to 40K.

And that was the smart take leading into this past week as the Bitcoin Futures ETF launches approached. Same formula. Rally leading up to and distribution on the news. But a funny thing happened.

They bought the news.

Bitcoin broke out to blue sky following the ETF debut on Tuesday and the most prominent alts followed suit.

It was a buy the news event.

Gotta love crypto!

? Nice Raise, FTX

FTX has had a fabulous year and it’s not done yet.

On Thursday, the crypto exchange announced a Series B round raising $420.69M at a $25B valuation.

If $420.69M wasn’t memeable enough, the firm closed it’s funding round with 69 investors.

These guys get their audience.

The crew celebrated the raise at opening night of FTX Arena in Miami.

Have a look —

Earlier in the week, FTX founder and CEO Sam Bankman-Fried spoke with Patrick O’Shaughnessy on the Invest Like the Best Podcast. It was a great conversation and well worth your time. The two talked —

Key functions and building blocks of a perfect market (11:55)
What it is about cryptocurrency exchanges that appeals to him (37:36)
Marketing dollars and paid acquisitions for FTX (54:35)

Click here to tune in.

? Inflation Nation

Paul Tudor Jones joined CNBC on Wednesday.

The legendary trader flashed warning signs as he shared,

I think to me the No. 1 issue facing Main Street investors is inflation, and it’s pretty clear to me that inflation is not transitory. It’s probably the single biggest threat to financial markets and I think to society just in general.

It’s absolutely dead for a 60/40 portfolio, for a long stock, long bond portfolio. So the real question is how you defend yourselves against it.

Clearly, there’s a place for crypto. Clearly, it’s winning the race against gold at the moment.

Catch the full interview here.

? The Vision Conference

The DACFP Vision conference went off without a hitch.

In case you missed it, here are a few must see session replays —

Next year’s event will be in-person in Austin, Texas June 8th and 9th.

Don’t miss it. Click here to register.

? What’s New In NFTs?

NFTs saw some big sales this week.

Bored Ape #8585 sold for 696.969 ETH on Tuesday. (~$2.7M)

On Wednesday, Solana Monkey Business #4136 sold for 1,790 SOL. (~$350K)

Here’s additional NFT news for y’all junkies out there —

Germany’s World Wildlife Fund to sell NFTs featuring endangered species

Centralized Exchange NFT Platforms: The Advantages & Disadvantages

Solana-based play-to-earn NFT game MonkeyBall raises $3 million

Meta4 Capital will invest up to $100M in rare NFTs

Italy’s Artissima Becomes the First Major Art Fair to Mint NFTs as Part of an Overhaul of Its Emerging Artist Prize

That Tungsten Company is Auctioning Its Largest-Ever Cube as an NFT

Fanatics’ NFT company is worth $1.5 billion, and NFL legend Peyton Manning now owns a stake

The Weeknd Joins Tom Brady’s NFT Platform Autograph as It Expands Into Music

? DraftKings Partners with Polygon

NFTs on DraftKings aren’t going away.

DraftKings and Polygon announced that it entered into a strategic blockchain agreement to support custom NFT drops and secondary-market transactions.

The sports betting app will also become a full validator for the Polygon network.

Read the press release here.

Osprey Funds Investor Product Series

For more info on Polygon and the other coins associated with our single coin trusts, see Osprey Funds’ Investor Product Series here:

Polkadot
Algorand
Solana
Polygon

⛓ AP Partners with Chainlink

AP announced it will work with Chainlink to bring economic, sports, and election race call data onto the blockchain.

When asked, What’s the significance of AP news and information being used on the blockchain?

AP director of blockchain and data licensing, Dwayne Desaulniers said,

Trust. The core purpose of a blockchain is to be a publicly accessible, safe and secure record of verified information. Because AP is such an important source for fact-based and trusted information around the world, we see this as an opportunity to provide blockchain users with data and info they can trust.