The dollar bounced back up. Equities across the board fell from record highs: The S&P is down almost 1%, the Nasdaq almost 2%, and the Dow is inching down as well. Oil is closing the session down 7.5%, from $65 to now $60.
In crypto, we’re observing a slight pullback but, looking at the various charts, nothing as dramatic as in traditional markets. BTC edged down about 2%, currently holding on at around $58,000. ETH is currently stagnating a few dollars below $1,800. ADA, which yesterday led the charge, fell almost 10%.
It is interesting to see that the BTC Dominance index is not swinging one way or the other, decidedly staying below 62. The question now is: are we forming a bottom for another move up (BTC gains while alts fall), or are we setting up for strong fall (BTC underperforms relative to alts)? Only time will tell.
Fundamentals are good for the crypto space as a whole, though.
The Glassnode chart following long-term MRV (a measure of transactions older than 155 days) shows that even at these elevated prices we’re nowhere near the levels seen at previous cyclical tops. There is a long way to go, and the mistake most investors will make, in my opinion, is selling too soon.
Let’s not get too comfortable, though. Along the way, we might see massive bouts of volatility. At this very moment, the BTC options open interest is rising towards $15 billion… that’s a lot of leverage that could go beautifully right or horribly wrong. I’ll be grabbing my popcorn and watching.
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.