Over the last few weeks, as $ETH has gone up, down, and sideways, I’ve noticed a few things about its effects on the NFT market.
ETH pumps = NFTs dump.
ETH sideways = NFTs pump.
ETH dumps = NFTs nuke.
Knowing this information, I had a strange feeling come over me last night, that stemmed from a few confluences I saw in the market.
I was talking to my brother about ETH and NFTs, because he asked me what I thought about the state of the market. I’m still long term bullish af on both. We are still early to the NFT meme season, but short term, my thesis has changed.
I told him that I think ETH is going for a huge run in the next week, and that we probably have one week to exit all major NFT holdings, in order to have more direct ETH exposure.
I told him that max pain would be ETH flash crash in a day or two, in order to liquidate longs before the next leg up. Of course, once again, I underestimated how fast these markets move. The whole market nuked over night!
So now what?
Here’s the blueprint.
ETH is going to make new ATHs very soon. We’re still in a bull market for alts like P2E coins and NFTs, but short term NFTs will suffer from ETH dumping (now) and pumping (soon).
The smart money will exit illiquid JPEGS temporarily to maximize ETH gains.
So, you don’t want to be holding any major positions with NFTs unless you have a few blue chips that you are super confident in (ex. Art Blocks, Punks, Apes, etc). Everything else will nuke. And you’re seeing it right now.
I’ve been selling most of my NFTs over the last few days, except those that I’m comfortable holding long term (Bastard Gan Punks V2, Rogue Society, and The Ethereans).
Now’s the time to rotate your NFT money into ETH or any other major altcoins that you think will pump with ETH. For example, I think blue chip P2E coins like $AXS, $YGG, and $SAND will eventually pump with ETH (although they will lag behind initially, but catch up later). I’m specifically adding very heavily into my $AXS position.
If you can’t exit your NFTs because you’ve already sustained a major loss, then just diamond hand them.
Like I said, the NFT craze isn’t over. It’s just going to take a back seat while ETH makes new highs. And, it will be painful watching valuations crumble, but they will come back! The capital from ETH gains will flow back into these again eventually.
Anyway, that’s it guys. I wanted to tell you all what the fuck is going on. I don’t see anyone talking about this, so I felt the need to share some truth, or at the very least what I’m doing to prepare for the ETH mega-pump.
Godspeed Degens.
-Scared Money
P.S. We might see some $FTM gains be rotated into the Fantom ecosystem in the not-so-distant future. My biggest bet is on the #1 NFT game on there called Deli Land (main token is $ACRE). DYOR.