Daily Bitcoin and Crypto Analysis

Yesterday, a friend pointed out that this BTC analysis newsletter was starting to look dangerously like an ETH analysis. It's true, we've focused on the exciting ETH outperformance and breaks to new all-time highs but, interestingly, the fundamentals between the two aren't that different.

In traditional markets, things are looking good, with more positive earnings and news coming from large companies in the US. The sharp moves up have calmed down, though, and after a move up, the S&P closed just 0.10% up, while the Nasdaq closed flat.

The coin percentage change table below indicates that once again, we're up, on the day and on the week.

With Google seeing record growth, Amazon’s performance rising, and then, on a broader level, Democrats in the US pushing ahead with an aggressive stimulus plan, one can’t help but buy into risk.

A quick glance at the coin percentage change table should summarize today's briefing nicely. We're up! It is hard to say whether that is just because global markets have turned risk-on with positive company performance in tech and further talks of a stimulus plan or just pure enthusiasm around crypto.

While BTC stagnates in the lower 30K's, the Bitcoin Dominance Index has been trending down. It's been a while since we've seen the 61 levels but yesterday, and early today, that's where we were.

As retail investors’ focus cycles from GME stocks to silver, global equities seem to have recovered from last week’s sharp descent. The S&P closed the session up 1.8% and the Nasdaq gained almost 2.5%. Gold continued to perform positively as silver rose another 7% on the session. It was also interesting to see the dollar, which seems to have bottomed out, continuing to rise.

Last week was important on many levels, we passed 100 million virus cases, President Biden pushed plans to attack fossil fuel harder than oil producers probably anticipated, the GameStop battle between retail investors and hedge funds took place with massive losses on both sides, and more.

The weekend saw both conflicting data and conflicting newsflow, leaving BTC in a strange place. In just the space of three days, we had Elon's Twitter announcement, a quick retracement, many miners selling on exchanges, India moving forward with its crypto ban legislation, massive institutional withdrawals, and increased stablecoin supply. No wonder investors probably feel... puzzled.

Over the weekend, SkyBridge Capital’s Anthony Scaramucci called Bitcoin as safe an investment as bonds and gold. Earlier this month, SkyBridge Capital launched a Bitcoin fund.

Think of yesterday and reverse it: GameStop shares fell, equities rose, the dollar retraced previous gains, treasuries retreated, pushing the 10-year yield up to 1.05%, and oil dropped further. Only gold remained flat amidst all the movement.

The traditional space swung back, from risk-off to risk-on. With equities rising and gold being probably the most boring asset to trade right now, BTC was the immediate beneficiary of a risk-taking session.