Prior to these moves, the crypto space fell sharply as well. BTC fell 14% (to the lower 28K’s), only to bounce back up instantly, closing just 4.4% down and above 30K, at $31,650.
Naturally, a healthy dose of liquidations took place: For example, $190,000,000 (in long positions) worth of Bitcoin were liquidated on Binance within 10 minutes.
Naturally, alts suffered in response, but it is worth noting that performance prior to the dip was great (in many cases, outperforming BTC), and recouped nicely after the dip. It seems that investors are looking at other projects to either allocate more funds or rotate some of their BTC gains while maintaining crypto exposure.
To illustrate the shift, ETH crossed $1,000 for the first time since 2018 and traded a record $100 billion across exchanges. The OI for ETH crossed $2.5 billion across exchanges, also for the first time.
Stepping away from market data and toward more fundamental news, institutional money inflow continues to grow.
Three Arrows (admittedly a large crypto player to begin with) reported an estimated $1.2 billion position in Grayscale GBTC. Bitwise, a Grayscale competitor, rose for the first time to $500 million in AUM. We also saw Scaramucci’s group launch a crypto fund with $310 million in AUM—just to begin with.
Written by: Justin d'Anethan, Sales Manager
Yesterday's trading was mixed. Early in the session, even with reports of economic slowdown in the US, traders were still buying, maybe thinking it solidified the accommodative Fed policies.
Yesterday’s narrative was somewhat bittersweet. On the one hand, Fed policies remain hyper accommodating, which is positive. On the other hand, the accommodating stance is based on lingering concerns about the economic recovery in the US (and also globally).
Bitcoin has fallen back below $40,000 today, as the denial from Amazon of the impending acceptance of Bitcoin as a payment method came through. Prices returned to our support level of $36,500 before rallying once more, a sign that this move may be supported by more than just click-bait headlines.