BTC rose another 3% yesterday, currently at $44,600 and tantalizingly close to the 45K resistance/support.
We're seeing some powerful moves in markets lately. Bolstered by optimism on the Evergrande case, which some now believe won’t have a ripple effect on China and the world’s economy, alongside the Fed signaling they will not taper with the current (accommodating) policies, investors are bullish.
The S&P and Dow bounced up walking back on a good chunk of the losses observed in the past week and a half. Watch out, though, as a dead-cat bounce is a known pattern where short-term optimism can give way to an even deeper and longer-lasting pessimism.
In the meantime, risk-takers are happy. That’s also true in the crypto space. BTC rose another 3% yesterday, currently at $44,600 and tantalizingly close to the 45K resistance/support. The correlation with global markets is undeniable. If traditional assets are well supported, we should see BTC continue to rise.
If the above scenario plays out, the BTC dominance could continue to fall. Alts are gaining market shares. To share a personal feeling, the outlook on altcoins now compared to previous years has a different flavour: people consider ETH, ADA, DOT, and other coins in a more poised fashion and with a genuine belief in the value - and/or potential value- those protocols can have in the new economy, in DeFi primarily.
Right now, in the alts realm, XTZ is outperforming with a 16%+ gain. Closely following, we have DOT and also LUNA, gaining between 6% and 10%. LINK and ADA are also outperforming with returns of 4-5% in the past 24 hours.
Maybe the biggest news in the crypto space is the announcement by Twitter of enabling tipping on the social media platform, using BTC and the Lightning Network. This is big. It’s big for Twitter as a way for content creators to monetize their user base, and also big for the crypto space and the adoption by the main population, who will get comfortable using cryptocurrencies.
On the less positive side, though, it was interesting to hear that Celsius was told to stop operations in Kentucky, by local regulators.
On the bearish side of things, we can also see funding rates on Bitfinex turning negative, hinting at a more bearish outlook in the short run.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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