As always, it’s important to look at markets from a macro perspective as opposed to in isolation. Right now, traditional markets are still enjoying a risk-on tilt with equity indexes hitting new records on positive earnings. It’s worth remember it will be a pretty dynamic week of trading, though, with a Fed meeting, jobs data on Friday and also some more earnings along the way.
In the crypto space, while I can’t say we’re hitting new records, there is strength.
BTC is closing the session down just half a percent, at around $61,000. While that’s happening, the BTC dominance continues to fall, currently at 43.70. That actually means alts are rallying or at least outperforming.
DOT is on fire, just blew up over 17% on the session alone, breaking its previous all-time high, previous record close, etc. I did tell you there was strength. There’s more. Coins like DYDX, STX and LINK are also on the rise with gains between 5% and 15%.
I do want to say something, though, I don’t think we’re in a fight between alts and BTC. Meaning, we’re not in a zero sum game with capital cycling from one or the other. There’s plenty of fresh capital flowing in and plenty more activity to come all around.
The current stagnation (can we call it that) of BTC for me is just the consolidation at those elevated levels to then go even higher.
A beautiful graph from CryptoQuant shows the unspent transaction output just breaking a five-month range which supports further price appreciation.
The data seems to be corroborated by another chart, from Glassnode this time, looking at the ‘relative value transferred’ (so transactions relative to the price of the underlying asset) and it seems to indicate the amount of transaction relative to the current level hint at bullishness.
Maybe an even more telling chart comes from Jarvis Labs, showing the purchases made my BTC ETPs and close-ended funds. Over the past month, they’ve bought more than even the miners were distributing… I’ll let you figure out what happens when people buy more than is supplied.
As if this wasn’t enough, we picked up on Valkyrie following up on an application for a physical exposure ETF (which naturally is much more accretive to the space and to BTC prices, as opposed to futures trading). The deadline was pushed back by the SEC to Jan 2022, though.
Ok, last graph of the day before I leave you. We’re not the only one picking up on the interest. Traditional banks themselves keep on adding jobs, right now more than 1,000 crypto-related positions since 2018.
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