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Daily Bitcoin and Crypto Analysis

Daily Macro And Crypto Markets: Kimchi Premium Trends Down, Supportive Of Global BTC Prices Rising

November 5, 2021

Justin d'Anethan

If you look at markets, you can sense an undercurrent of, maybe, indecisiveness?

In traditional markets, that’s expressed by most equity indexes showing some minor gains (that technically still pushed them to new highs) but also futures trading being essentially flat. Many people in the US and globally are waiting for American jobs data due Friday morning, their time. While I’m a long-term holder, for people who trade in and out, I feel like levels all around are getting a bit extended.

In the crypto space, I think there’s still a long way to go before we’re anywhere near exuberant levels. Right now, BTC has pulled back slightly, down 2.5%, at $61,300. While that’s happening, alts are outperforming, pushing the BTC Dominance index below 43. 

Today’s best performers are VET with a solid 10% gain, LUNA up 7%, and then AVAX, SOL, and AAVE are up anywhere between 3% to 6%.

Now, I’ve been talking for a minute and still haven’t shown any colorful charts. That’s criminal. So, the first one I want to share comes from CoinMetrics and shows a steady ramp-up of addresses holding at least some BTC. There’s about 9.1M of them, and it speaks volumes about the interest, adoption, and just how far we’ve come.

More on the trading side, CryptoQuant charts the Kimchi Premium, essentially the higher BTC price in Korea, because of local exchange regulations and capital control. That premium is dropping now, which, interestingly enough, seems to be bullish for price. So you expect prices to move higher while the premium moves down.

Yet another bullish chart, again from CryptoQuant, shows the exchange reserves. That might be my second favorite data to look at, and, you know what’s coming? It keeps on going down, reducing the selling pressure or supply, and helping any buying to push prices higher.

On the less supportive side, at least short term, I read an article about SEC chair Gensler hinting at upcoming enforcement actions against crypto firms. In the long run, more regulations help more steady capital flow in, but, as it gets implemented, it might generate some pain.

Oh, by the way, did you hear rumors about Revolut looking to hire developers for an upcoming crypto exchange? Just about everyone in payment systems wants to get in on this.

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