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Daily Bitcoin and Crypto Analysis

September 29 Daily Crypto Update: Rising yields and strong dollars are hurting the markets

September 29, 2021

Justin d'Anethan

Pullback, that’s what we see in markets.

All of it is mostly driven by rising yields. It’s been on an incessant ramp up, pushing the 10-year yields well above 1.5%. Along with yields, the dollar is rising, gaining strength. It weighs on tech stocks or, more broadly, securities with -perhaps- too high valuations. 

As a result, equity indexes across different markets were pushed down. To mention just one, the Nasdaq is down over 2.5% on the session alone.

I wish I could say it’s an equity thing, but from a macro perspective, it’s clearly not. Gold and crypto also feel the pain of rising yields and dollar strength.

On the session, BTC is down almost 3%, back to just below $41,000. The BTC Dominance index is rising, above 42 now. 

Besides UNI, benefiting from a real need for decentralized exchanges in a period of regulatory crack-down, most other coins are in the red, following their leader. Among the worst performers, ATOM, LUNA, and XTZ dropped a hefty 8-9%. The performers yesterday were getting sold en masse, somehow. 

Away from price action, let’s look at some interesting charts. 

On a short-term basis, CryptoQuant spotted the whale ratio picking up yesterday, with big players depositing and selling coins on various spot exchanges and hinted at a temporary pullback.

 

More bearish news, Glasssnode data shows the on-chain activity for BTC and shows that the number of new entities isn’t at a level that feels bullish. If anything, it’s hinting at sideways or downward trends, after a significant pick-up during bull-runs.

 

From a longer-term perspective, something I find incredibly bullish (also from Glassnode) is the continuing trend of a reduced liquid supply of coins. Essentially, more and more coins are being held long-term. It takes things back to basics: there are fewer coins to go around while the interest grows. While this is at play, prices should be well supported.

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