We’re not done going up. Typically, you’d expect some pause or even a quick pullback, but risk assets haven’t stopped going up since the relief package advance and the last Fed’s speech. The S&P is at an all-time high, at 3,970. The Dow is at an all-time high as well, at 32,950. The Nasdaq walked back on half of its losses from the past few weeks.
Yields haven’t walked back, though. The 10-year yield is still at around 1.6%. The dollar doesn’t feel bearish at all.
While the above is happening, the crypto space is underperforming on the session, relative to equities. After reaching new highs on Saturday, BTC fell on Sunday about 3%, then fell another 4% throughout Monday. We’re now closing the session down at $56,500, or 8% from the all-time high.
Something is interesting: during the down move, alts typically underperform, meaning that the BTC dominance goes up. Yesterday, BTC lost grounds relative to alts suggesting that part of the BTC selling went into various alts. ETH held up better, ADA did too, so did XTZ, then VET (VeChain) totally outperformed rising 20% in USD terms, and 25% in BTC terms.
On a broader scale, a beautiful chart from Glassnode tracks the amount of new entrants in the crypto space and we can see the number of entities growing unabatedly over the past few months but even weeks (even during the downturn). The message is clear, more people are getting involved.
While that’s happening, a CryptoQuant chart shows the massive outflows from the exchange, showing that people are taking coins away to be held and to not be traded, not be sold. That’s again very supportive of low supply, less sellers, and so higher prices as demand grows bigger. This, by the way, is not just for BTC but also ETH.
Totally unrelated of course, but a new survey shows that nearly 10% of the $380 billion stimulus check may be used to buy bitcoin and stocks. I let you do the math. https://finance.yahoo.com/news/nearly-10-of-the-380-billion-in-stimulus-checks-may-be-used-to-buy-bitcoin-and-stocks-survey-131009531.html?guccounter=1
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