In traditional markets, people are having fun. There’s just a flurry of good fundamentals, I’m talking about a $1 trillion infrastructure bill passed by the House, jobs data on Friday that beat expectations by a good margin and then also the Pfizer announcement of a pill-form covid medication. So, cruises and airlines stocks are flying (pun intended) but really all risk assets are gaining.
In the crypto space, dare I say we’re having even more fun? I’m coming from a diversified holder’s perspective but BTC is back around 63K, ETH standing strong above $4,600 (so around its most recent all-time high), DOT is definitely above $50, KSM, STX, GRT… VET has been rallying in the past three days. Basically all or most of it is in the green.
I posted on Twitter this weekend, I think the coin that has lagged but I think is prepping itself for a massive move up is ADA. While the crypto space has been rallying, ADA has been consolidating and narrowing in a bullish pennant formation that could eventually break and blow up from.
More broadly speaking and on a less bullish side, that infrastructure bill I mentioned, in the US, also has provisions to tax crypto, so, depending on where you stand regarding regulations you will see that has a hindrance to more capital flowing in or, on the contrary, a credible framework for more capital to pour in.
Looking at crypto data, it’s great to notice that BTC ATMs have nearly doubled in the past year, that’s probably a function of El Salvador but also a flurry of countries in South America, Africa and so on that have gained respect or grown interest for Bitcoin and cryptocurrencies.
There is also data from Glassnode basically calculating the total value settled on the Bitcoin blockchain relative to the market cap. So, you’ll understand it, when there’s less value relative to market cap, prices might be a bit overheated whereas when there’s more value going through relative to market cap, we might be undervalued and due for a move up. That last scenario is what we’re in now and so we might expect a ramp up soon, pushing prices higher.
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