🧠 Chamath Palihapitiya’s opinion on the market.

November 03, 2022

GM Seedphrase Family 👋 The best crypto food for your brain. Even Gordan Ramsey approves of this message. 

Today's Agenda 📓: 

  • 🧠 Chamath Palihapitiya’s opinion on the market. 

  • JP Morgan x Polygon

  • 🤑 FOMC Effects on Crypto

  • 😂 Meme of the Day

When billionaires talk markets, we listen.

Billionaire, VC, OG Facebook exec, and 2013 crypto veteran, Chamath Palihapitiya, has revealed his expert analysis on the current market and it might not be what you expect...

Every week, Chamath and other industry titans meet on the All In podcast to talk business, politics, and crypto. 

This episode is 1 hour and 29 minutes long, but ain't nobody got time for that... 

Here's the Sparknotes:

  • ✋ Short term bottom is IN

  • 📈 The generals have been shot

  • 🤝 Inflation reports & the FED

  • 🧠 Long term pain

✋ The Bottom is In.

On Monday, Oct. 31, markets were ripping. To him, this is signaling a short term rally during November. 

Here's why:

📈 "The Market Bottoms when the Generals are Shot"

It looks like the generals have been shot, according to Chamath. The generals are blue-chip stocks like AMZN, META, GOOGL, MSFT, and AAPL, who all lost significant market share compared to the total S&P 500 market cap.

"FAANG" stocks have ended a near 10 year bull run, with their worst losses TO DATE. 

Besides AAPL, they are all down more than 20% and have had another disappointing quarter of earnings.

🤝 Inflation reports & the FED

More signals that the short term bottom is in:

  • Inflation has peaked at 9.1% as we're now at 8%.

  • Despite negative growth in Q1 & Q2, US GDP in Q3 accelerated at a 3.6% pace, turning growth positive.... so we're not in a recession anymore?

  • Unemployment numbers are at an all-time low.

All these things are pointing to a short term rally. 

☠️ Long term pain

Another industry titan, David Sacks, chimed in to say he believes the U.S. will likely see a huge recession next year because of the Fed's rapid interest rate hikes. 

The FED is raising rates faster than any other year. Because of this, Sacks says the affects of the rate hikes will be delayed. 

AKA: short term rally now, but strap in for long term pain.

🧠 Final Thoughts 

The markets could see a little run this month which could be a good time to exit positions and collect profit.

Chimmath is an OG who called Bitcoin in 2013, and he is now providing some alpha on how he's playing the market in the short term.

We invest thousands of hours into studying the Crypto world every day, and our daily emails are full of alpha.But if you want to shorten your learning curve by piggybacking off of our experiences and mistakes..Check out our 14 Day Free trial on Seedphrase Premium and get access to our latest picks and crypto narratives that have the potential to rocket.

  • Yesterday, the FED announced it would continue rate hikes & aggressive monetary policy to fight inflation.

  • Crypto and stocks historically react positively to the news.

  • BTC almost touched 21K. 

  • ETH broke $1600.

  • The trade occurred as a part of the Monetary Authority of Singapore (MAS) project Guardia pilot.

  • This tokenization completes trials for foreign exchange (FX) and the trading of government bonds powered by lending protocol Aave and Uniswap.

  • For FX transactions, Onyx successfully tokenized Singaporean dollar (SGD) deposits and Japanese Yen assets.

  • This is significant because this deploys liquidity onto the Polygon main net for supplying and borrowing tokenized foreign exchange transactions. It's the first time the world has seen a real-world use case for institutional-grade Defi products.

  • JP Morgan just said in September that Bitcoin is a Ponzi. Now they're doing DeFi. LOL.

😂 Meme of the Day 

"When you hang out with the friend that referred you to SeedPhrase Daily."

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research

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