European equities are also inches away from their record highs. In contrast, Asian equities are, well, recouping from the massive drop experienced in the recent weeks and months, but at least seemingly forming a bottom.
In the crypto space, there’s no staying still. BTC rose about 4% yesterday and seems to march further, potentially attempting to cross the tantalizingly close 50K mark. We’re currently at $49,700.
The interesting dynamic, which we’ve observed recently, is that even when BTC gains, the BTC dominance edges down as alts gain ground. And indeed, you can see performance ramping up in many DeFi focused coins.
VET gained 10% in the past 24 hours. ADA and MATIC, which many people hadn’t looked at earlier this week, also rose 10%. A batch of coins followed ETH’s 7% gains. I’m thinking of GRT and LINK in particular. Other coins like THETA, DOT, and STX are matching BTC’s advance.
It might not feel like it, but check out the total crypto market cap. We’re at about $2.2 trillion. That’s not so far from the all-time high of $2.6 trillion. While BTC is still below 50K (but marching up), alts are also growing in size and gaining, which is pushing the value of any diversified investor’s portfolio up.
I also want to discuss two straightforward and clear charts, one for BTC and one for ETH. They’re from two different providers, CryptoQuant and Glassnode, but essentially show the same thing. The available reserves of coins on exchanges are dropping. It doesn’t get better than that. Imagine gold was trading at $100, and then more and more investors would request the physical gold to keep it in their safe. Rapidly the supply would decrease, demand would outgrow, and, ultimately, prices will rise.
We see BTC supply levels close to December 2017, which, from the sound of it, isn’t good since we all know this was the peak of a massive bull run, but the trend we’re in is the opposite. In 2017, supply was ramping up to these levels. Now it’s ramping down as more people take coins out, which is good. ETH is showing the same dynamic at an even greater rate, which is also super bullish.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
Investors aren’t ready to give up on equities yet.