The S&P reached new record highs, yesterday, but retraced and ended the session down. The Nasdaq fell straight away. We’re seeing indexes fall, along with the dollar surprisingly. Maybe that has something to do with Biden’s new welfare and tax plan. It’s worth noting also that, despite vaccinations, covid cases continue to reach records.
In the crypto space, the theme of ‘alts outperformance’ plays out further. BTC is down half a percent while alts gain or hold strong.
Let’s not get too comfy, though, the BTC Dominance index can and has typically seen bounces or retracements. You can play this well, by taking alts profit into BTC when said alts outperform, and then buy them back when they underperform -become cheaper- relative to BTC if/when the BTC dominance rises. This won’t be a one-time moment, it’s a strategy to put in place, or not.
Back to price action, ETH is breaching new highs. It’s beautiful to watch. The new record is $2,760. We’ve discussed it quite a lot here but the fundamentals on the ETH blockchain and the continuous improvements made to the ecosystem along with the pouring in of capital in DeFi are all so supportive.
Other alts are doing well as well, I’m looking at AAVE currently, along with ADA. Interesting also to see BCH do well.
Onto recent news items. We’re seeing yet further actions from governments against illicit crypto activities, for example US officials recently arrested the alleged operator of a $336 bitcoin mixing service.
More on the regulatory side, Ireland is now requiring crypto firms to comply with AML and KYC rules imposed for other financial institutions -a move some will see as positive.
Interesting also to see Germany, which has been very crypto friendly, warn Binance over stock tokens, which had been offered without publishing any investor prospectus.
More towards new capital pouring in, we heard about Wealthfront, a robo-advisor, now offering cryptocurrency-related products for its users.
Oh by the way, did you hear about the rumour that Facebook might be holding Bitcoin?
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