After it appears that a Tesla car on autopilot crashed and killed two passengers, the company stock dropped. It seemed to have dragged most of the tech sector with it as the futures traded lower this morning in Asia. Non-tech equities are down as well, to be fair. The dollar continues to retreat.
I’d love to say crypto is doing better but we’re also down -albeit not by much. The difficult Sunday session that took us down to $56,200 continued yesterday to $55,600.
The BTC dominance index seems to be gaining some strength as alts -more volatile- fell during the session. ETH is down by 3%. DOT fell about 7%. LINK slumped more than 8%. XTZ swan-dived about 11%. The only -unexplained- exception is XMR, gaining 5%.
Is it time to lose hope? I don’t think so. Retracements, in BTC and alts, are part of the journey and part of a healthy market; you need those pauses to catch your breath and run some more. Already today, we can see funding rates on perps exchanges ticking up again.
If anything, Sunday’s correction flushed out a lot of leverage in the derivatives markets -which had their third most active day in the year- and gives us room for new trades to come through.
Away from pure price action, fundamentals for the crypto space remain as strong as ever. We could’ve guessed it was coming but the TIME magazine will now accept crypto payments for digital subscriptions.
On a higher level, the UK is launching a taskforce to explore a pound-based CBDC, so issued by the Bank of England.
As a last information nugget and a reminder of a chart shown last week, the consolidation seen in the lower 50Ks, for BTC, seems to have held up very well and hint that it will be very hard for prices to drop much further -unless some cataclysmic event comes about. Hold strong.
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