Morning‌‌ ‌‌Update—February 10th —Macro and Crypto Markets


While the earnings coming out are positive, the Nasdaq closed just 0.15% higher, while both the S&P and the Dow closed down 0.10%. Moving a bit more drastically, the dollar keeps losing against its peers, helping gold and crypto markets rise.

 

The crypto markets don’t really need any help, though. Yesterday, BTC reached a new all-time high of $48,200. It is now closing the session flat (but after a 20% rise the day before), at $46,400.

 

The amount of news and discussion regarding BTC is astounding. From financial institutions and regulators to corporates, media, and retail traders, everyone has an opinion. This, of course, serves as free publicity and just fuels the interest in crypto markets.

 

This enthusiasm isn’t just around BTC. ETH also rose to a new all-time high of $1,825 yesterday.

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Other alts are doing very well in USD terms, but it’s worth noting that most of them, including ETH, have been underperforming relative to BTC in the past few days, with the exception of BNB, which rose a total of 60% in the past two sessions. The BTC Dominance Index is now at 63, an okay level to be at, but certainly a distance away from the 61 levels we had tested.

 

One might ask: What’s next? While I never try to time markets, the fundamentals look as good as ever, so… further up, maybe?

 

This chart by CryptoQuant shows both the on-exchange reserves of BTC and of stablecoins. The dramatic drop of the former and rise of the latter almost looks like the economics 101 graph in which supply and demand cross. Clearly, in the past few months, more and more people are taking their coins off-exchange(to hold) and placing their stablecoins on-exchange (to buy). 

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Another interesting piece of news that came through is Jim Cramer talking BTC. I’m personally not a huge fan, but the audience and standing he has within the instrument space can’t be denied. Yesterday he said, “Every treasurer should be going to boards of directors and saying should we put a small portion of our cash in bitcoin. (...) Nice hedge against fiat currency.” 

 

The inflow of capital isn’t over just yet, it seems.

 

 

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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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