On Monday, following the large stimulus package passed in the US, equities enjoyed a bullish tilt. Yesterday, investors clearly took some profit off the table; it’s worth noting that there’s a Fed meeting and the release of jobs numbers coming up. Most indexes gave back some of the gains with the S&P down half a percent and the tech-heavy Nasdaq down more than 1.5%.
In crypto, a similar dynamic of Monday’s rise followed by a small walk-back on gains took place. We’re closing the day about 3% down, currently at $48,000.
As one would expect most other coins followed on, but, some didn’t. ETH fell about 5%, ADA, XMR, DASH, etc. also closed in the red. LINK on the other hand, along with BCH are finishing the day with strong green candles and definitely outperforming BTC. LTC, DOT and XTZ are closing flat.
What that means is that the BTC Dominance is now flat. It’s been like that for a while and suggests crypto investors are still very undecided about whether to place their bet on the reliable BTC (but which has risen already a lot) or on some more volatile but maybe juicier trades. It’s also worth noting that alts have risen a lot themselves and begets the question, can they rise -can they outperform BTC- much more?
Specifically on BTC, yesterday we saw another 12K withdrawal (of bitcoins, that is) out of Coinbase, suggesting that large players were happy buyers in the upper 40K’s. I’m also looking at the exchange reserves of BTC and they seem on track to stay as low as ever. All that is very supportive of higher prices.
On the other hand, the correction we’ve experienced gave place to quite a lot of bearish signals. The hashrate for one is down by about 20%. But even from a more trading perspective, the collapse of the Grayscale premium, funding rates getting close to zero or the derivatives open interest dropping suggests well… less interest, less activity.
The above is somewhat short-term and can change at a moment’s notice though. Long-term, the lack of liquid supply of BTC and the clear interest from institutions should keep up at strong levels and, hopefully, take us further up.
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