Investors aren’t ready to give up on equities yet.
US indexes are essentially flat, even in the wake of pretty ominous inflation data. Many investors are also waiting for earnings from rather large retail companies and will need that data to turn bullish again or stay decidedly bearish.
Gold is marking what looks like a top, at $1,680, with the RSI indicator in overbought territory.
In the crypto space, the chart feels a tad flat as well. Now, long-term, I’m as bullish as ever, but right now, indicators and price action seem to signal some bearishness, with divergences popping up and BTC heading below $63K.
Even the BTC Dominance chart looks somewhat range-bound, with investors unsure about whether we’re in a full-on bull market (where you can place bets on more volatile altcoins) or whether we’re due for a pullback (where you’d scurry to the safety of BTC and realise any alts profit).
I do want to give an honorable mention to WOO and STX. Both coins are up while the rest of the market is down and tout a strong 7-day performance. They’re worth checking out.
On a broader scale, and to look at the news, it’s amazing to hear of BitGo. Currently, the market leader for crypto custody, reporting about $64 billion of assets under custody.
We can also see data from CoinShares tracking inflows into crypto-linked investments products. While the most recent week is lower than the previous one, the inflows continue to pour for the 13th consecutive week.
Lastly, maybe the more important news of the day was President Biden signing the infrastructure bill, which is positive for markets. It means more cash flowing into the American system but also relates to crypto as it defines broker-dealer. This is good and bad. On the one hand, it offers more clarity for regulations and means that miners and various DeFi operators could be liable to report on data they don’t have. So we’re seeing the ignorance from regulators about the technology and an attempt to move forward regulations-wise… Let’s see where this takes us.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
Last week, inflation data exceeded analysts’ forecasts and jumped by a good margin. This spooked investors who sold risk assets, and it saw major US equity indexes break a 5-week winning streak.
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