While, last week, US markets ended with equities mostly down, this morning in Asia, futures look to trade up. It’s worth noting that yields rose further, at 1.35%, with many investors expecting inflation to pick up. Gold seems to regain somewhat, currently bouncing off the support level at $1,775.
A lot of money has clearly been flowing from traditional space and towards the crypto space. Over the weekend, BTC’s market cap touched $1 trillion for the first time ever. Let that sink in.
From Friday’s open at $51,600, buyers took us past 53, 54, 55, 56, 57 and to 58K on Sunday. The new all-time high is $58,360, so up about 10% in the past three days.
Alts may have lost some grounds but the BTC dominance index remains at around 62.5, an OK level to be at. ETH rose to new all-time high as well, and broke the long-awaited $2,000 resistance, pushing us to $2,040. We’ve since then retraced slightly, closing the day at $1,930.
The picture looks very similar across the other large cap alts with LINK, DOT, ADA, DASH and BCH getting some decent action and, for the first two, reaching new highs. In BTC terms, though, the picture is mostly red, simply meaning that while money pushed prices higher, they underperformed relative to King Coin.
It’s worth noting that the activity on large institutional exchanges seems to have cooled down a bit, with the premium relative to more retail exchanges falling. This suggests there might be less USD inflow and so less strength to push us even higher.
Almost to contradict the above, there is news of MicroStrategy closing their previous offering of 0% convertible note for a total of $1.05 billion -essentially money to be put in BTC. When and how this will be handled remains to be seen but, on a broader scale, the appetite is still there.
Depending on whether you trade short-term or long-term, you might choose to trade this very differently. For now, though, we remain bullish. It’s interesting to see the NUPL (net unrealised profit/loss) at similar level than early Jan, hinting at plenty of room before we’re ‘too extended’.
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