Markets all around seem to be pulling back somewhat, we’re seeing it in equities with the S&P falling more than half a percent, and with other major indexes. The move also created an interesting buying pressure in bonds which rose on the session, pushing yields down. Gold is also doing not too badly, currently hovering around $1,800.
Presumably, this all came due to negative expectation on this quarter’s GDP growth and growing concerns about supply chains globally (less workers, slowed transportations system and, of course, inflation for the end customer).
In the crypto space, while we’re still at great level, relatively speaking, you’ll feel much more bearishness, after a pull-back yesterday. BTC fell almost 3%, from a bit above 60K to now just above 58K. Naturally, you don’t need to be a chartist to understand that we wanted to stay above the 60K mark.
It’s worth noting that there’s a massive options expiry due to come on Friday, with about $3 billion notional and a max pain price at $55,000. Similarly, a $1.1billion notional ETH options expiry is due on the same day, with a max pain point at $3,600.
On the session and while BTC fell, this time, the BTC dominance grew, almost acting as the mirror opposite of the previous session. So alts have underperformed yesterday. ETH fell almost 5%, from $4,100 to no $3,900.
Amongst the worth performers, DYDX is down 15%, VET and XTZ fell 10-13%, ADA and LINK also are down 10%. Basically, if you’re holding alts and looking at your account balance in BTC, you’ll be down.
Ultimately, I think the move is largely due to the natural ebb and flow of markets, and the fact that short-term investors who bought through out this leg up have realised profits as we hit and stayed around all-time high. Once that’s cleared, we can probably have another run at higher levels.
Long-term, though, the fundamentals mentioned yesterday still hold and should still be supportive. We even saw El Salvador purchase more bitcoins, about 420 of them (so $24 mil).
On the bearish side, the SEC has denied Valkyrie’s proposal for a second -this time leveraged- Bitcoin ETF.
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