Big Bounce for Crypto

Image above is a view on Mount Rainier from a beach on Whidbey Island.

Yesterday was a good day with wonderful weather and we went for a walk during lunch time with my wife. Then in the evening our daughter had a friend over and they played together for a while until about an hour till the friend had to be picked up by her mother and the last hour we all played Uno. I think that we played three games and I lost every single time.

Yesterday was also a very solid day for crypto, pretty much every coin I own was up ten percent or more.

Just the day before when I was adding to my BTC and BSOL positions it was hard to do it as prices seemed to be in a free fall and it felt like catching a falling knife.

I had to remind myself that while it feels that way and the prices came down much faster than I have expected the price was down ten percent from the day before so my strategy called for a small buy.

Then a day like yesterday comes and everything is up ten percent. Then you feel like you should have bought more and that is fear of missing out. So I once again have to remind myself that buying the big green candle is not part of the plan.

Some analysts call this a technical bounce and expect Bitcoin to head lower again and potentially down to fifty thousand or even to thirty eight thousand dollars. The most drastic scenario is for the case where stock market enters a major correction or even a bear market.

Silver and gold had their correction as and crypto definitely had its de-risked moments and now both trade at much lower levels. Stocks are still trading close to their all time highs. So stock market is what remains to be de-risked.

There are signs that it is starting to happen... Most of the gains were driven by the MAG Seven Stocks. And after the recent earnings reports some of the MAG Seven have had down days almost like crypto with Microsoft loosing ten percent of the value after earnings report and Amazon doing a similar thing after the earnings report.

In both cases what spooked investors were the plans for increased capital expenditures, for example in the case of Amazon going from ninety billion dollars to two hundred billion dollars.

In the long term these capital expenditures will help these companies to stay dominant, but right now investors are spooked. They are thinking AI bubble is another dot Com bubble. But Amazon did come out of the dot Com bubble and became a big winner. So there will be big winners and big loosers, but AI is not going away.

Today, crypto recovery seems to be continuing with bitcoin getting close to ninety thousand and Etherium back over two thousand. Hive hit the low six cents levels in the last two days which was even lower than the sharp drop last October and now Hive is back over seven cents.

So now that the gap down that took place last October has been filled, it is time for Hive to bottom out and hopefully head back higher with the rest of the crypto market later in the year.

Splinterlands had their fortune draw yesterday and I was lucky to pull a black foil reward card:

Yes, this is my black foil Phlegmor and my optimizing of the amount of Splinterlands Fortune Draw entries did work and this is the payoff.

Last week I had five hundred something entries and didn't win anything, but this week I had 616 entries and won. So six hundred entries is the number to aim for if you want a good chance of winning in Splinterlands Fortune Draws.

This report was published via Actifit app (Android | iOS). Check out the original version here on actifit.io

06/02/2026

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Daily Activity, Walking