It’s worth noting that the 10-year yield is still above 1.5%.
In the crypto industry, we’re riding that wave up. BTC rose over 3.5% on the session, testing the 58K levels (near the all-time high reached in February), and is now closing the day at that very level.
Alts are mostly up in dollar terms, but are really only retracing losses suffered in the previous session. Overall, the BTC Dominance index is up further, at 62.3, suggesting that Alts underperformed relative to Bitcoin.
I like to look at the total crypto market cap (BTC+ALTS). Unsurprisingly, we’re back at all-time highs, at $1.73 trillion. This means that, regardless of specific coin performance, more capital has flowed into the space (or never really left).
With a growing stablecoin supply and derivatives open interest reaching fresh record levels (see the Glassnode chart below), my conviction that a flurry of new, large, and sophisticated traders are coming into the space is only solidified.
Almost coinciding with that narrative, Bakkt (the ICE’s custody and crypto product solution) was just awarded a BitLicense in New York. Volumes have remained tame on the exchange, but the license is a step in the right direction and will surely enable many more players to pour in.
Even more bullish in my eyes: The on-exchange balance of BTC continues to steadily decline. If there aren’t enough coins to be sold, guess what happens to prices in order to cope with demand?
Lastly, as a silly but perhaps not insignificant piece of news, an NFT was sold at Christie’s for $69 million: a serious auction house and a serious amount of money. It’ll be fascinating to see how blockchain changes the status quo.
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.