With progress on the US fiscal stimulus front and data showing a pick up in retail sales, equities rose. The Dow reached a fresh record high while the Nasdaq (read: tech stocks) underperformed. The 10-year yield retreated slightly but is still at a relatively high 1.27%. The dollar rose and gold trended further down, now at $1,777.
With the growing expectations of cash stimulus, it’s not surprising that BTC was on the good side of the equation. There’s also plenty of news coming through, such as BlackRock admitting they ‘dabble’ in BTC, CME BTC Futures hitting $5B daily volume for the very first time, Morgan Stanley’s SEC application to potentially launch a BTC ETF, and MicroStrategy buying yet more BTC.
On the session, BTC marched on to new highs, passing through 51K, not stopping, and reaching a new all-time high of $52,640. Based on exchange activity and large options trades, it seems institutions are long spot and calls (=spread). We’re now closing the day at about $52,250, more than 6% up.
Interestingly enough, while the focus seems to be on BTC, the dominance index didn’t rise by that much, currently at 62.7. Most of the alts underperformed, such as ETH, LINK, ADA, XLM, BCH, etc. but some other coins held up well, such as DOT (still reaching new highs), BNB, and LTC.
On a last note, albeit repetitive, the trend of higher stablecoins lower supply of BTC continues. To reiterate, that means there’s more and more money to buy coins, and less and less coins to be sold. You can see below a chart from Glassnode showing the parabolic rise in USDC inflows along with a CryptoQuant chart showing about 635,000 Bitcoins essentially dropping from the usual exchange reserves.
We’re not done yet.
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