Last week started painfully with most indexes falling on covid variant spreads and fears. Fortunately, better-than-expected results by tech companies changed the narrative and pushed the S&P, the Nasdaq and the Dow to record highs. This week, with more results to come, the risk-on tilt seems to have permeated and futures are edging up.
Whether it’s because of the bullish tilt in equities market or supportive comments by tech leaders during the B-word conference, BTC and the rest of the crypto space are up.
With Tesla set to report earnings and a massive purchase made a few months back, when BTC was around 32K, it’s probably a good thing for Elon that BTC price doesn’t go much further down.
From Friday open to Sunday’s close, BTC rose almost 8%, from $32,300 to now $34,500. Saturday and Sunday accounted for 3.5% of that. I like to see this because prices seem to have pushed out of multi-week downtrend. We’ll need to form a bottom to confirm this breakout.
While alts are in the green, the BTC dominance is higher, showing us that, broadly, they underperformed. ETH is tracking closely but yesterday’s tame session kept it below BTC’s rise; the same can be said for ADA and DOT, or LINK. Two exceptions worth noting are LUNA and XTZ, gaining about 15% since Friday open.
Looking at the news, it was great to hear Jack Dorsey reaffirming that BTC will be a big part of Twitter’s future, suggesting that more mainstream online platforms might seek to use cryptocurrencies to reward users or enable purchases.
A big piece of news that came through is the confirmation of a rumour mentioned in this very briefing a few months back: Amazon is looking to hire digital currency experts. It’s started with blockchain developers and seems to be more concrete now with more cryptocurrency focus.
On the less positive side of things, a Financial Times article discusses the trend of hedge funds moving away from Binance following the various regulatory crackdowns it’s faced. No surprise here but still significant.
Lastly, to leave you on a more bullish note, a chart tracking options transactions on the paradigm platform shows a clear tilt to call buys in the short-term (end of July and end of August). While this can always be a hedging strategy, there’s a shift in the previous bearish outlook.
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