The S&P 500 marched on to records yesterday, touching for the very first time 4,500. The Nasdaq also broke new all-time highs and closed above 15,000. The move occurred as investors' fears about Fed’s tapering cooled off. Basically, after a period of fiscal stimulus and rate control, the Fed could’ve changed course to wind that policy down but, for now, expectations of that happening are low.
BTC also managed to move up but definitely nowhere close to all-time highs. After a quick touch at $47,000, prices rallied 2.5% to the current $48,500.
Alts are currently on stand-still. Rather, different coins are trading in different ways. In previous briefings, I talked about XTZ and the partnerships with several European financial institutions; it seems now investors are paying attention and bought, pushing prices by 20%. NANO, STX and SOL also outperformed BTC but rising just 3-4%. Other coins fell, I’m thinking of LUNA, GRT or ADA, falling about 4%.
With regards to onchain data, I’m looking at two charts from CryptoQuant:
The miners reserve is steadily rising, along with prices, highlighting that miners keep on holding coins and aren’t ready to sell and, just like a good base of buyers, a reduced selling pressure can keep BTC going higher.
The Puell ratio, which shows the ratio of daily issuance relative to the average yearly issuance. This essentially also shows miners' perspective but from a revenue (USD) point of view and also hints at levels where buys or sells can happen. Right now, we’re seeing it at lower levels, which hint at quite a lot of room to grow.
Away from price action and onto news, the FCA, in the UK, declared that Binance “was not capable of being effectively supervised.” However, it’s also supported a completely ring-fenced Binance Markets exchange, separated from the main/broader company.
Still with a regulatory twist but, in my opinion rather supportive, Thailand has issued a new set of regulatory guidelines for digital asset exchanges. This is rapidly making Thailand maybe the most crypto-friendly country in South-East Asia. They did however put strong limitations on custodying client’s fiat and digital tokens, as well as prohibiting lending-like activity with yields or re-hypothecation of clients’ holdings.
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