While investors await jobs data on Thursday in the US, most American equity indexes traded flat but, to be fair, close to or at all-time highs. European equities are also inches away from their record highs while Asian equities are, well, recouping from the massive drop experienced in the recent weeks and months, but at least seemingly forming a bottom.
In the crypto space, there’s no staying still. BTC rose about 4% yesterday and seems to march on further, potentially making another attempt at crossing the tantalisingly close 50K mark. We’re currently at $49,700.
The interesting dynamic, which we’ve observed recently, is that even when BTC gains, the BTC dominance edges down, as alts gain ground. And indeed, you can see performance ramping up in a lot of DeFi focused coins and just a greater interest for the many solutions offered.
VET just gained 10% in the past 24 hours. ADA and MATIC which many people hadn’t looked at earlier this week also rose 10%. A batch of coin followed ETH’s 7% gains, I’m thinking of GRT and LINK in particular. Other coins like THETA, DOT or STX are matching BTC’s advance.
It might not feel like it, but, check out the total crypto market cap. We’re at about $2.2 trillion… that’s not so far from the all-time high of $2.6 trillion. While BTC is still below 50K but marching on, alts are also growing in size and gaining, that’s pushing the value of any diversified investor’s portfolio up.
I want to also discuss two very simple and clear charts, one for BTC and one for ETH. They’re from two different providers, CryptoQuant and Glassnode, but essentially show the same thing. The available reserves of coins on exchanges is dropping. Really, it doesn’t get better than that. Imagine gold was trading at $100 and then more and more investors would request the physical gold and keep it in their safe… rapidly the supply would decrease, demand would outgrow and ultimately prices will rise. This is what happens with valuable and scarce resources.
We’re seeing BTC supply levels close to December 2017 which, from the sound of it, isn’t good since we all know this was the peak of a massive bull run; but the trend we’re in is opposite. In 2017, supply was ramping up to these levels, now it’s ramping down as more people take coins out, which is good. ETH is showing the same dynamic at an even greater rate, and that’s super bullish as well.
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