While traditional markets are digesting the Pfizer supply chain news (slowed and potentially affecting the time and quantities of the vaccine distribution), crypto shows some independence.
The reports coming through are undeniably positive:
The S&P Dow Jones Indices is planning to list cryptocurrencies indexes in 2021. Regardless of what that means for actual trading and volume, having those benchmarks and coming from such a provider is definitely supportive for the space.
Real Vision, a financial TV channel, follows in the steps of MicroStrategy and has allocated about 10% of its balance sheet to BTC. It’s worth noting, though, that the company’s CEO is Raoul Pal, a strong advocate of cryptocurrencies.
It was also interesting to hear Spotify looking to hire someone to grow their crypto-related efforts.
The interesting dynamic, though, is that even with all this good news, prices haven’t moved much. BTC regained the 19K level but one can see that the momentum and enthusiasm that transpired throughout October and November seems to have sobered up somewhat.
In the long run, it does feel like the engagement from funds, banks, payment providers and large investors has grown enough to suggest plenty of growth and a genuine understanding of the crypto value-proposition. In the short-run, this rally has endured for a good while and prices might need some sideways action or even a quick retracement before rising further. The key is to not be out when that latter part comes through.
An interesting moment for BTC: nothing much is happening.
While the weekend might bring some more volatility, we’re closing the week in limbo, unable to make another run at the 20K mark but with no move to the downside either. After the intraday swings on Tuesday, we’ve just slowly crept back up.
BTC is about 2.5% away from the previous resistance, at $19,888. It seems almost too tempting, too close, to not go there. But, it’s also precisely for that reason that whale traders (who’ve been adding to their on-exchange balances) might dump their coins over the weekend.
Should we see a retracement, we’ll be looking at the $17,130 support. In the event of a correction, there is also the risk that the derivatives-fueled rally could trigger liquidations, pushing us even further to the downside.
The natural ebb-and-flow of price, has replaced the bullish moves seen through October and early November
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
Investors aren’t ready to give up on equities yet.
One of the big factors contributing to bitcoin’s expansion over gold is that millennials are becoming more knowledgeable of the investing world.
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