September 7 Daily Crypto Update: El Salvador buys 400 BTC as BTC legalization approaches

We’re in a clear risk-on market. Investors are happy to buy equities and sell bonds. Gold is back above $1,800, and the dollar index is lower. It’s a time where people are happy to put capital to work. 

I also like to see commodities like lumber and copper picking up slightly, always an indicator of a healthy economy, underlying it all.

The crypto space is feeling the risk-on tilt as well. BTC rose another 2% on the session yesterday, now around $52,500. The BTC dominance is edging ever so slightly higher, suggesting a varied performance from alts that ultimately averaged each other off.

On the outperformers side, we have SOL up about 25%, THETA up about 15%, and LINK with a tamer but very steady ramp up, gaining 5% yesterday on the session. On the underperformers side, we’re looking at UNI and LUNA, down about 3%, which is disappointing in a rising crypto market, and AAVE and MATIC, falling 2.5% on the session.

Looking at interesting news, El Salvador has bought about 400 Bitcoins as the launch of the BTC legalization approaches. We’re hours away at this point, as it will take effect on September 7. Cuba is now saying it will recognize and regulate cryptocurrencies, maybe in a very similar vein to El Salvador.

Globally, we’ve also seen more inflows into BTC from retail and institutional investors. A chart from CoinShares highlights the capital going in and out of its crypto tracker products, and we can see the last three weeks turning positive.

More on the retail side but highlighting the same dynamic, MetaMask says it’s seen its user count grow by an insane 1,800% in the past year, to top 10,000,000.

Looking at crypto wallet and custody solutions, the bank BBVA is adding its own custody solution to its crypto offering. So it just feels like all-around players with various focuses still have an interest in crypto solutions. And that makes me very hopeful for the future.

We’re also seeing super investors and institutions taking full-on directional exposure to the asset class, with billionaire Bill Miller taking a plunge into GBTC with 1.5 million shares but also Morgan Stanley loading up on $240m GBTC shares themselves.