Yesterday, US markets were closed for ‘Presidents’ Day.’ Today, if futures are any indication, they will open up after finishing last week on a strong note. The S&P, the Nasdaq and the Dow all rose. Unsurprisingly, bonds continue to be sold, pushing the 10-year yield up to 1.2%.
In the crypto space, BTC has seen some range-bound moves over the past several days, between the 46K reached after Tesla BTC purchase announcement and the current all-time high at $49,700. The long bottom wick, created by yesterday’s shakeout and move back up suggests some further bullish action in the days to come.
It’s also worth noting that, as it’s been the case for a while now, the supply of stablecoin seems to be growing while the on-exchange reserves of BTC diminish, meaning—theoretically—there is more than enough dry powder to absorb any selling that would take place.
Alts are moving nicely versus BTC but, looking at the BTC dominance index, one can’t help but see signs of exhaustion—highlighted by the bullish RSI divergence, meaning if the index goes up, alts will have lost steam relative to BTC.
In USD terms and for now, though, alts are up. ETH quietly reached new all-time highs, touching $1,877. LINK did too, at $35.70. Other, older coins, are still a distance away from their all-time highs, but are still ticking higher: I’m thinking of LTC, BCH, and ZEC, for example.
On a broader scale, looking at BTC’s previous bull runs, they were always marked by increased miners outflows (understand ‘selling’), but this hasn’t been the case during this one, or at least not in any comparable way. While the halving of BTC had an impact, this hints at the idea that miners aren’t ready to sell yet and might be holding on, hoping for further upside.
By the way, in case you missed it during this long CNY weekend, plenty of news came through, notably: Morgan Stanley’s investment arm potentially investing in BTC, Canada approving the first publicly traded Bitcoin ETF, MasterCard allowing merchants to accept crypto payments, and Deutsche Bank exploring crypto custody. Looks like there’s plenty of interest and growth ahead.
Sign up on EQUOS via: https://tinyurl.com/ybdvmu3z
Sign up on YouTube via: https://www.youtube.com/c/JustindAnethan
