ETFs + Inflation + Low Exchange Reserves + High Stablecoin Supply = NEW ATH - Daily ‌‌Macro And Crypto Update

ETFs + Inflation + Low Exchange Reserves + High Stablecoin Supply = NEW ATH - Daily ‌‌Macro And Crypto Update


No surprise here, right. We've been talking and expecting new all-time highs for the past few days. If anything price action was playing games, maybe clearing the overhang of sellers before the 64'800 to better breakthrough later.

 

Yesterday night, Asia time, BTC powered through and reached new all-time highs. It feels like we needed Americans to wake up and place all those bullish bets. 

 

The new price record is $67,200. Damn, it feels good.

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What happens now? I'm always weary of euphoria but I also think you have to be out of your mind to short a new all-time high in crypto. We all remember what happened after crossing the 20K mark.

 

With ETFs becoming a thing now, for crypto, expect to see more cash, not less. BITO already has an AUM over 1 Bil. Valkyries Futures ETF will launch on Friday. There you have it.

 

Look at exchange reserves of coins, that's the other side of the story. There aren't many bitcoins to go around. This is a programmatically limited supply and even current holders aren't depositing to exchange. Everyone is holding off for higher prices.

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Yet another piece of the puzzle is inflation. There’s a fascinating chart from Galaxy Digital tracking the ups and downs of BTC prices alongside the ups and downs of inflation expectations. And it’s clear. People understand that the value of cash and the relative price of things is about to change, or has been changing and we’re about to feel the effects. When that happens, the way to protect yourself is to go for real assets or another way to say that is deflationary assets because of limited supply. That’s Bitcoin for you.

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On top of inflation, on top of exchange reserves, on top of ETFs, there’s another thing I’m looking at: the stablecoin supply -essentially the dry-powder, the capital, the fiat equivalent in the crypto world. Right now it’s also hitting new heights, suggesting there’s plenty of buying power to take us much -much- further up.

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Another great thing that happened overnight is the alts price action. While I mentioned a renewed interest in ETH, in the options realm, (by the way, it crossed 4K again, yesterday); but it seems that altcoins all around are getting bought.

 

The BTC Dominance fell slightly even as BTC gained. That’s actually shocking and super supportive for alts. In any case, whatever you’re holding, don’t forget: diamond hands.

 

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Justin d'Anethan
Justin d'Anethan

Head of Exchange Sales at EQONEX. Passionate about financial markets, long-term investments, the occasional short-term trade and disruptive technologies.


Daily Market Update
Daily Market Update

A quick market update (1-2min read). Every week day, morning in Asia, I go over major moves in macro and crypto markets, linking fundamentals to price action.

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