The reason I always look at macro markets, besides the fact that they’re fascinating, is because they do have an impact on crypto and investors’ moral. Right now, things feel very supported. Even with the delta variant or a decreased retail footfall across America, a lot of the major equity continue to rise, including yesterday. A similar trend can be observed with European and Asian equities. Bonds are also bought, gold is also rising.
In the crypto space, again, things feel good. Specifically yesterday, BTC fell actually by just 2%, but is already making its way back up, currently at $46,500.
While the BTC Dominance index continues to fall, the performance among alts is mixed. Some coins are doing very well, I’m thinking of SOL, up 20% still, but also DOT or LUNA, gaining 15% on the session. Other coins like ETH, MKR or VET are actually underperforming, so falling more than BTC.
Away from price action and onto news or onchain data, something I found really interesting pop-up is reports that Walmart is looking to hire crypto and blockchain experts. The picture it’s painting is pretty clear, retail giants have picked up on the interest in crypto payments, noticed payment providers and other financial services getting involved and understand they need to have at least a solution they can trigger at a moment’s notice, if only to stay relevant compared to competitors. Amazon is looking, Google is looking, Apple, now Walmart. Who will be next?
Looking at miners’ outflows and also exchanges’ netflow, we can see a very supportive pattern. Naturally, this is positive when things go well and can change a moment’s notice. With that disclaimer out, it’s nice to see miners holding on to their coins instead of selling them (meaning that, to a certain extent, they expect higher prices) and people also taking coins off exchanges, suggesting a period of accumulation and -again- reduced selling pressure.
Another chart from Glassnode I thought was interesting is the net unrealised profit and loss ratio which, essentially, doesn’t tell you much more than if people are losing or profiting, but, it also hints at market psychology and the fact that people capitulated (sold at a loss) during the stagnation, in the lower 30K’s, but also that they’re now back in profit and, probably, in much stronger hands, people who’ve held no matter what.
The chart, however, also shows levels of bullishness or, further up, euphoria. We hadn’t reached that stage in the run up to the mid 60K’s, let’s see if we get there if a next leg up takes us higher.
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