Bullish in October after China ban, ETH pools closed, NFT games and more

October begins with renewed optimism. Despite reports of higher than expected inflation (US), major markets are seeing moderate gains today. The tapering of stimulus (“tapering”) by the United States Federal Reserve is practically an inevitable fact and political tension is crippling Biden’s infrastructure plan. However, investors seem to be interpreting these barriers as temporary. Because the last quarter of the year looks very promising due to a stronger economic recovery every day.

In the meantime, Bitcoin and Co. have risen in the world of cryptocurrencies like the phoenix with an extraordinary increase. The ecosystem is certainly infected with general optimism. We must add, however, that the comments made by Jerome Powell, the director of the Federal Reserve, were very helpful. What did Powell say? Well, he said he has no intention of banning cryptocurrencies. Which we really like after the bad news from China. October, welcome!

Now let’s talk about this week’s most popular crypto news.

Bullish in October after China ban, ETH pools closed, NFT games and more
Bullish in October after China ban, ETH pools closed, NFT games and more

History never repeats itself. However, it often rhymes. September tends to be bearish. And the last quarter of the year is usually bullish. This is due to the social dynamics. Not all months of the year have the same economic activity. For example, January is not the same as December. Well, September is not October. Bad news is always perceived as a major disaster in a retrograde phase. However, bad news tends to be ignored during a period of euphoria.

In the investment world, the subjective is often more important than the objective. That means China won’t be a problem if investors are bullish about everything else. If there is pessimism now, everything will be a tragedy. In any case, it can be assumed that we will have a lot of optimism by the end of the year. Why? Well, because this time of year people tend to spend a lot. In other words, there is a lot of economic movement going on. And this activity is usually positively reflected in the markets.

Ah, couldn’t miss the whale thing. Here is the favorite sport of the Bitcoin community. According to legend, it is possible to predict the future by interpreting the movement of these giant animals. Based on the principle that whales are smarter than other mortals. I do not know. But without a doubt they are very influential. Especially when you consider that they usually move in “herds”. So his actions are more than signs from the hereafter, self-fulfilling prophecies.

Whales are causing a supply shock by pulling out of the exchanges. They do this because they think new demand is coming. In other words, they believe the price will go up and stop selling. One thing leads to another and that’s it. We have a bullish rally. The whales as such are not causing the boom. What really drives the price up is the new capital that comes in. That is called liquidity. The demand is a consequence of the optimism of the markets. Whales always respond to this phenomenon.

Of course it’s possible. Or rather, of course, it was possible to reach $ 37,000. However, recent price action has shown that our current support is stronger than we thought. The power of this last impulse is a sign of conviction. Which increases the chances of not diving into new depths. Mind you, I am not saying that it is not possible. He just commented that we are further from that probability today than we were yesterday.

China is important, but not essential. Many companies are denied access to China. And that doesn’t mean that the companies concerned have no future. The miners will adapt. And other countries will fill the void that China has left. In other words, it’s not the end of the world. The cessation of the operation of the most representative miners will initially cause astonishment and concern. Sooner or later, however, we will all adjust to this new reality. In other words, the world will take its course.

I am afraid it is inevitable. The success of a game stimulates the diffusion of new games. This could lead to market saturation. Which in turn means less cake for each game. Players can abandon the old games in order to join the new games, adding significant volatility to the price of NFTs.

We know full well that the key to all of this is arriving early. Players who get to a game early can lose everything or win big. You can lose everything if the game doesn’t start. On the other hand, they can win big if the game goes viral. In short, this dynamic benefits the new and harms the old.

Axie Infinity players, over time, may feel like the game is no longer performing as well. You can consider retiring from the game before its possible doom to try your luck at one of these new games. In other words,

 Players are bored. And they’re looking for new distractions.

The big question for the emerging world of NFT gaming: which is more important? The network effect or the novelty effect? If the network effect turns out to be the key, then size and age play a role. Therefore, the market will focus on a few games. On the other hand, in the event that novelty is the most important thing, the market is atomized into many players. From an investment perspective, the first scenario is much better than the second.

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