Welcome to this week’s analysis on which altcoins are performing well and which ones are not. You can view the list here:
Macro Update
On August 22, Jerome Powell, the Federal Reserve Chairman, announced that rate cuts were on the table for the next Fed meeting in September. The market reacted with a strong rally across all risk assets and with good reason. This potentially marks a major turning point in Fed policy that I think will lead to more easing of financial conditions and an acceleration in Global M2 growth. As I covered in a previous newsletter, the Global M2 YoY % Change is a leading indicator of US PMI by about 5 months and this could be the catalyst for PMI going much higher. This would then push altcoins and risk assets much higher. Similar turning points in PMI crossing above 50 occurred in early 2016 and mid 2020 and you can see what happened next with the altcoin market…
Bitcoin Update
Bitcoin is still going sideways and testing the breakout level of 111,600. I think more likely than not it holds here and is the last shakeout before going higher.
Ethereum Update
Ethereum made a new all-time high and is going sideways. It’s preparing for a explosive move higher and once firmly above all-time highs, we will see the rest of the altcoin market catch up in due time.
Solana Update
Solana briefly broke through the $200 level as I anticipated last week. Similar to Ethereum, we could see some sideways price action before going higher. I still think that $250 is coming next.
My theory is still playing out with Solana vs. Bitcoin being above MA200 and as long as it holds here, I think we’re about to witness a surge higher similar to what we saw in the second half of 2024.
Dogecoin Update
Similar to the rest, I think Dogecoin is still getting ready for a parabolic move. Just a bit more chop first before higher.
Sui Update
As you might have guessed, Sui is still going sideways. Just more patience before going higher.
Large Caps
For large caps, here’s the ones that stand out on a long term timeframe:
- XRP
- Hedera
- Stellar
- Sui
Not much to update here and just more sideways price action but still expecting higher for those who can wait.
Model Portfolio Update
The open positions is showing a positive return of roughly 28%:
The overall portfolio performance considering closed positions is roughly a 10% positive return:
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