Throughout the end of last week and up until Friday’s session, risk assets were bolstered by the stimulus package moving forward and accommodating Fed policies. The S&P reached record highs, the Nasdaq walked back on some of its losses, the Dow boldly marched on as investors cycled towards value stocks.
Whether or not investors now see BTC as a ‘value’ type of asset is unclear, but BTC marched on over the weekend. The new all-time high is $61,800. The spot volumes across exchanges jumped on Saturday during the breakout. BTC is now closing the Sunday session not far off, decidedly above 60K.
As BTC rose about 7% over the weekend, alts also rose in USD terms, but lost some ground in BTC terms. This is normal. As BTC reaches new highs, the focus goes where the action is. Then, as things calm down, investors start to look for the next coin that will “pump.”
ETH actually rose a good 9%. Other alts showed green but tame candles. It was also nice to see BCH rise a hefty 10% over the weekend. We coincidentally launched a new pair on EQUOS, BCH/USDC, on Friday: This is the perfect opportunity to go and trade it.
Away from pure price action, some interesting news came through.
In France, a lawmaker created and is gathering signatures for a petition that would allow their central bank to buy Bitcoin. Regardless of whether they’re successful or not, the move speaks volumes.
Furthermore, MicroStrategy has purchased some more Bitcoin yet again, this time the equivalent of $15 million.
Last but definitely not least, did you hear about the CFTC examining Binance and whether or not it allowed US residents to buy derivatives? Do we have another scandal coming? In any case, it’ll be an interesting story to follow.
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.