While traditional markets are up, crypto markets are up more. With the progressing political situation in the US (suggesting further stimulus) and the reassurance of vaccine arrivals in the coming months, markets are enjoying a risk on tilt, pushing equities to all-time highs. The S&P rose 1.5% to $3,800. The Nasdaq jumped 2.5% on the session. The 10-year yield continued its ascension, now at around 1.08%. The dollar experienced a quick bounce, but is at decidedly abysmal levels still.
In the crypto space, as we’ve seen already, bull moves are much more powerful. We’re also testing new highs, but after a 6.5% day. BTC, which just recently astounded everyone by breaking the 30K mark, rose throughout the week and crossed 40K.
The new all-time high is $40,380.
While chartists will look at indicators for hints of an eventual reversal, when lifted by so much momentum, indicators can be ignored for a long time. The RSI shows we’re overbought, but that can go on for a long time. Right now, we just retraced slightly, at $39,000.
Alts clearly underperformed during the session, relative to BTC. They’re holding up and recently enjoyed a flush of interest and cash but, on the session, most were either flat or down, between 2-7%. Yesterday was a good day for ETH, though, as the total market cap hit its all-time high.
The more momentous milestone hit yesterday was that of the total crypto market cap, which hit $1 trillion for the first time. This is important because instead of showing money rotating through coins, the total market shows that more new/real cash went into the crypto space, and the moves are happening in billions. The message is clear, enough people are happy to short their local fiat currency to long decentralized cryptocurrencies.
As a last piece of news, Elon Musk just became the richest man on earth, surpassing Jeff Bezos. I wonder what would happen to crypto markets if he decided to allocate just some of his cash (or Tesla’s cash) to BTC.
Written by: Justin d'Anethan
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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