Are Cryptocurrencies Entering Hazardous Waters?
Tim Knight | Sep 14, 2021 12:43AM ET
Regarding crypto, I hate coming off as capricious, but allow me to defend myself with Exhibit A. Specifically:
The above is an intraday chart, over many, many weeks, of Ethereum. I think we can all agree that trading inside the yellow zone is a total snap compared to the blue zone, which has been kind of a nightmare. Just in the past few days, right when you think it’s starting to shake off the blues (both literally and figuratively) it flops over again in a flaccid heap.
My overarching concern is the bigger picture; if we look at the same range of time for Bitcoin, it looks dangerously like the threat of a big top is almost in place. I don’t like the looks of this.
Just to add to my love/hate relationship with crypto, take a look at Litecoin, which is literally the ONLY coin I’m still holding on to right now. The graph below only spans a few hours, and the insane rise and fall spans literally minutes.
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I seriously started my dog walk, was puzzled to see my equity grow so quickly (I was looking at the account balance, not the chart) and just as puzzled when I finished the walk that it was all gone! I have no clue what happened, but judging from the volume, it was something freaky.
Anyway, on the love/hate thing, I’m kind of back to hate (well, at least annoyed) at this point. Simply stated, I don’t think we have a solid foundation. It seems more like quicksand to me right now.
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