I love watching markets and the economy because it essentially showcases global activity and investors' perception of it. Yesterday, the focus was on the almost $1 trillion infrastructure bill that was voted forward by the Senate and onto the House of Representatives.
On the news, the Dow and the S&P both reached new highs (again!) while the Nasdaq actually fell slightly. The latter is due to yields rising, weighing on growth-focused stocks. Gold seems to have given up on life and stays down.
The infrastructure bill could have a massive impact on crypto but, by the looks of it, nobody reacted and BTC prices just fell 2%, still closing above the 200-day moving average.
Things feel well supported -which probably means that I’ve jinxed it and we’re now due for a massive pullback. All joking aside, CryptoQuant published a beautiful chart showing whale purchases on Coinbase Pro and you can see a massive transaction took place end of July, at the low, not unlike the one that took place end of Jan and pushed us from 30K to 60K.
Looking at alts, you can see they’ve gained; the BTC dominance fell back down to 46.5. Among the best performers: LUNA rose 18%, and ADA gained over 12%. Other coins like STX, GRT, or SOL gained about 5%. The rest of the alt market is mostly in the green, so definitely outperforming BTC, which fell.
The above is curious actually. Yesterday, a massive hack took place on multiple chains (BSC, ETH, MATIC) and amounted to about $600 million. That’s an unbelievable amount of money for a single hack and, one would expect, send chills down the spine of DeFi investors. You would expect a chunk of the market to go back to the safety of BTC but, again, just like with the infrastructure bill, the market was mostly unresponsive and carried on.
There’s a few points and data I want to share because I think they highlight changes in the industry.
OpenSea, the NFT marketplace, overtook UniSwap in gas consumption, showing just how much activity there is in that space. Conversely, one can see that the activity on the BTC network has not really picked up since May.
Venmo launched a crypto cashback for credit cards, which is a major step in getting more payment providers involved with crypto, and of course their massive user base.
Oh, and last one, VanEck just filed -again- an application for a BTC ETF. Let’s see if that goes through.
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