I am unable to bear in mind many issues which have ever fallen for 12 straight days however right here we’re. Bitcoin is down one other $2420 right this moment, breaking the $20,000 degree and persevering with decrease to $18,171, which is scarcely above the session lows.
That is the bottom since mid-December 2020 and there is not a lot in the best way of assist on the weekly chart.
Whereas bitcoin’s 12% decline right this moment is dangerous, the 14.5% drop in ethereum is even worse. It is damaged $1000 for the primary time since January 2021 and has continued to $932.
Final week we highlighted the significance of $1700 as assist and — wow — did it ever implode after the break. It is down 45% in much less that two weeks.
The catalyst for the most recent leg down was the implosion of luna, adopted by the issues at Celsius after which the evident downfall of the crypto hedge fund 3AC.
Nothing goes straight down without end and bear-market bounces might be unbelievable. As dangerous as these charts look, there will probably be bounces however proper now it is a damaging suggestions loop to the draw back.
Much more worrisome are the persistent questions concerning the usefulness of Net 3.0. The thought of a decentralized and permissionless web is intoxicating however a decade later, we’re nonetheless struggling develop for authorized use circumstances. On the identical time, a budget cash has dried up so will probably be more and more tough to construct one thing novel. Hopefully the seeds have been planted for one thing apart from hypothesis and cash laundering.
This thread from the founders of AirBnB and Field made a great level about product-market slot in a January thread.
Levie added to this right this moment, saying:
“And this was the diplomatic model 🙃. I don’t consider it’s a good suggestion for the tech trade to be working round saying we’ve found out a revolutionary new web (which is patently unfaithful) whereas taking in client funding in a flawed system earlier than PMF.”
That is a stinging critique but it surely’s additionally an indication of the section that we’re in proper now. Individuals are gnawing on the core of the thought.