Continuing on the previous session’s enthusiasm around accommodating Fed policies, equities rose yesterday, with the Dow even reaching new highs. Yields continue to rise as well, with the 10-year up above 1.4%. That being said, some analysts expect that we won’t be able to rise much further, without the central bank stepping in to manage them.
The risk-on sentiment for traditional assets has unfortunately not permeated the crypto space. BTC took a breather from the massive retracement, sure, but while the session saw highs and lows about 10% apart, we’re closing the day at $49,400, essentially just 1% up.
It’s worth noting that the volatility has pushed even more players and money onto the derivatives playground. Yesterday, a record $180 billion of BTC futures traded across exchanges.
Within that derivatives space, it’s also worth noting that the funding rates are now trending down and reaching levels not seen in around a month’s time. This suggests a bearish tilt but is also just a natural consequence of sharp moves down.
Alts are holding up, with some outperformance here, some underperformance there. Overall the BTC Dominance index is flat or in range, showing that the King Coin and the rest of the crypto space can’t decide who should go first. Naturally, people seek juicy trades if and when everything is well supported, but they also consider the safety of the largest market cap coin, should things go south.
It was interesting to see that DOT, which had been a beacon of light in these dark times, is the underperformer today relative to other large cap coins like ETH, LINK, ADA, etc.
It had been a while since we saw a CryptoQuant alert for exchange outflows, but yesterday, about $670 million worth of BTC was pulled out of large exchanges. Could it be the result of MicroStrategy’s recent purchase of $1.02 billion worth of Bitcoins, following the closing of their 0% convertible note offer?
It’s easy to feel bearish in bearish (?) times, but, to me, we’re only getting started—the interest and buying power out there is massive and underestimated. Let’s be part of that.
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