The S&P had intraday lows of more than 2.5% and is closing down 1.4%, at $3,750. The Nasdaq is closing down another 2%, essentially down 10% from its all-time high, reached last week. Gold isn’t faring much better, now below $1,700.
There’s no reason to gloat for crypto investors, BTC is down as well, about 4.20% on the session, at $48,000. For anybody who bought BTC before Feb 2021, this is still a good position to have, but, for people who bought at the all-time high, their holdings would be down 16%.
While ETH is showing strength in the face of adversity, meaning it’s outperforming relative to BTC, most of the alts are down in both USD terms and BTC terms—notably DOT and ADA which are faring worse than others. Interestingly, though, the BTC Dominance index actually fell—one of the rare times it is lower during downward moves. Are people starting to feel safer with alts?
On a broader scale—while traditional markets might look scary and while we’ve risen to extended levels in crypto, one might argue, at least—a piece of data from Glassnode, in the same vein as previous data shared, shows the illiquid supply of BTC growing. That’s a positive, as it means the number of ‘hodlers’ is growing, despite the sell-off.
Away from price action and in regards to crypto news, if you haven’t heard of it yet, Arthur Hayes, founder of BitMEX, is discussing a surrender agreement with US prosecutors. What a fascinating story to watch unfold.
Still in the US, the IRS issued a paper clarifying the reporting requirements for crypto bought with fiat—a welcome move as clarity actually helps large players get involved and also helps solidify the crypto’s place in the global economy.
Lastly, a JP Morgan survey shows that 78% of institutional investors aren’t likely to invest in crypto. Considering how long they’ve been wrong about BTC, I can’t wait to see how this new piece of data plays out. A bon entendeur, salut.
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.