Preparing For Volatility: Putting My Stables To Work
The US conducted a military strike against Iran's nuclear facilities overnight. This was somewhat expected, as we've witnessed United States military aircraft movement across the globe in recent days. A situation like that, when a possibility of a strike is hanging in the air, has got markets spooked, and as we all know, markets really don't like uncertainty.
Perhaps that's why we saw a slight bounce back up in BTC price in a fashion of sell the rumour, buy the news, now it's done, time to move on. However, these relief pumps can be short-lived as new questions begin to rise: Will Iran start targeting US troops? Will Iran close the Hormuz Strait? Will the US be forced into a larger-scale operation, etc.
The next week will probably bring in more questions rather than answers, and therefore, I'm spending this Sunday making plans for the next week and preparing for worst-case scenarios.
BTC
On the technical side, BTC price is, of course, the first to pay attention to. In the chart below, you can see the monthly highs and lows marked in red, and it looks like we are currently headed to test the low point.
There's probably a lot of liquidity to grab in this area, so I wouldn't be surprised if BTC would bounce from the low and jump back to test the $106 areas at some point next week.
On the downside, the next support level I would be watching closely is the $97.7, which Bitcoin managed to break in early May. That would also mean a lower low, turning the 4-hour structure bearish.
BTC Dominance
BTC.D looks very interesting and is definitely one to keep an eye out for next week.
Bitcoin dominance has now broken the resistance and surged past the previous high, currently standing at 65.84%. However, the RSI is closing in on the overbought territory again. This previously sent BTC.D into freefall and gave altcoins some much-needed relief. That being said, it could still take some time for this scenario to play out, as it previously took a whole month for BTC.D to hover near "oversold" before crashing down.
Putting My Stablecoins To Work: Huma Finance
Bitcoin is one to watch, and since there's so much FUD in the air right now, I'm staying away from buying. The risk of deeper dips is still too high. Gladly, the crypto space offers many more activities for us so we don't have to be sitting on our hands completely.
What I am doing on quite a few protocols is farming airdrops with stablecoins.
To me, it's something that makes a lot of sense during these extremely volatile times. I'm currently active on Solana and Hyperliquid, which both offer some good opportunities to get airdrop exposure to tokenless protocols.
On Solana, I just started with Huma Finance, a protocol that has raised $46 million, so the future airdrop could be quite substantial.
Farming Huma is as simple as it gets: You just choose the lock-up period(or no lock-up), choose the mode (Classic with 10% APR or Maxi with no APR but 5x points) and deposit USDC.
You then get PST tokens in your wallet, which have the same value as your deposits and which you can swap on Jupiter if you decide to exit.
Currently Huma Finance caps are topped, but you might wanna bookmark the link and check back daily, cos they might increase the pool limits very soon.
Putting My Stablecoins To Work: HypurrFi
This is perhaps an even simpler way of getting airdrop exposure and earning some APY while at it.
HypurrFi is a lending platform on Hyperliquid where you can deposit stablecoins and use them as collateral to borrow more stablecoins or something else if you wish.
It's a relatively new platform on HyperEVM, so I think we are still early with this one. I am currently just lending some USDe, not borrowing anything, even though that could be an option later on if we get more dips: borrow stables, use it to buy crypto, pay back when crypto surges.
Until then, my stablecoin deposit is earning 11.35% APY and 5x protocol points. If you haven't been interacting with Hyperliquid before, you might wanna check out this guide I made.
Conclusion
What I love about the crypto space is the number of options we have for different market situations. There are always ways to put your money to work for you while waiting for better days.
Airdrop farming with stablecoins isn't a bad idea under any market circumstances, but it's perfect for extreme FUD days. Picking protocols such as these two I presented, and making sure you are not locking your funds, you can watch the show from the sidelines and be ready to buy again when you feel the time is right to go risk-on again.
Thank you for reading, and don't forget to like, comment and follow! 🟢👌
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🔹 Hyperliquid - the best perp DEX out there. Trade, stake & farm the next big airdrop!
🔹 HyperSwap - Swap & provide liquidity on HyperEVM, earn points for the airdrop
🔹 HypurrFi - farm airdrop points with stables by entering ref code BRANDO28
🔹 LeoDex - multi-chain, multi-wallet dex for all of your swaps
🔹 VOLO - stake SUI to earn APR & airdrop points!
🔹 Pawtato Land - very useful SUI dashboard, earn XP for the airdrop by completing small tasks
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Looks like it will be a tough summer
Yeah, it can be. A lot depends on the IRL FUD, on how long it's gonna go on. It's a shame, reall,y cos the setup forthe insane bull run was there and still is if people would just calm down and remember that our bags matter the most 😬
You know market situations and conditions can be one funny experience. Sometimes you just have to think beyond this price swing. One bomb dropped somewhere ends life or properties and it becomes a dip for some elsewhere to strengthen his holdings. Very funny one, it could be why wars
Exactly! It's like butterfly effect and also a ruthless game as some stocks increase during war time so traders can actually benefit from wars by buying certain stocks fro example. Crazy world.
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