We're at an interesting juncture, both for macro and crypto markets. In both cases we’re around all-time highs but the dynamics might be very different.
In traditional markets, while yields remain elevated and actually weigh on stocks, equities are still rising, bolstered by strong earnings from most reporting companies in the S&P 500 and this kind of sweeps away any concerns about labor shortage or supply issues.
In the crypto space, the narrative is still geared towards ETFs, whether the ones we have now or others that might come with different underlyings, different coins, etc.
The interesting dynamic that’s taken place over the weekend is the relative strength of alts. While BTC has essentially settled around $61,000 over the past few days, or about 8% down from the new all-time high, the BTC Dominance index has moved down below 45.
Amongst best performers, ZEC has gained over 35% in the past week. SOL is also on a massive ramp up, after being ignored for a few weeks. GRT is showing some strength. STZ and LUNA are also outperformers.
Looking at interesting but maybe not surprising data, it’s beautiful to see the open interest in CME futures grow steadily, as a result of the BTC ETFs now available and garnering more and more interest in the short time they’ve been live. Naturally, things can change rapidly price-wise, but it’s the engagement. I assume the CME people must be celebrating this long-term play of listing BTC and ETH futures in the first place.
It’s worth noting that some long-term holders have started taking profit. We can see that by following coins that haven’t moved for a long-time be transferred to exchanges. That’s something to be aware of but so far that type of selling has been absorbed by the maker and we remain at elevated 60K+ levels.
Another interesting chart I’m looking at comes from CryptoQuant, they noticed that whales opening positions on derivatives exchanges (we assume to take leveraged bets to the upside as we hit a new key level) are often supportive of a new leg up after a period of accumulation. Looking at the chart, we might just be there and that’s extremely supportive of higher prices in the next weeks or months.
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