Yesterday, all US equity indexes reached record highs; not that the push was particularly dramatic (they were already at all-time highs) but positive earnings expectations bolstered investors’ sentiment. Tesla reported about $1 Bn in net income. Other assets like gold or the dollar are losing, and bonds are being sold too.
In the crypto space, after a strong weekend, yesterday’s session pushed BTC all the way up to $40,000… briefly, as one would expect in a perfect short squeeze. Prices have since then walked back on some of the gains, currently still about 6.5% up for the day, at 37,700.
For the longest time, strength in BTC actually meant more strength in alts, which led to the BTC dominance falling, but, since the May crash, the opposite has been true. People have retreated to the safety of BTC or are just going for the leader of a crypto-wide cycle. The dominance index is currently above 48 which -relatively speaking- is high and suggests alts underperformed.
Exception made of MATIC, LINK and VET which rose about 10-12%, other coins are up 3-5%, like ETH, ADA, DOT or AAVE. So, alts are up but less than BTC.
Looking at the news. Amazon actually denied the report that they will accept bitcoin this year; this doesn’t mean they’re not getting involved in crypto but are just disputing that claim. On the flip side, Shopify is starting to allow its e-commerce customers to sell NFTs directly.
Less fun, Tether (USDT) is again under attack with a probe by the DOJ on allegations that the company would’ve misled banks about its business operations.
More positive, Goldman Sachs has just filed a ‘DeFi and Blockchain Equity ETF’ with the SEC, suggesting real interest to offer and get exposure to projects linked with the crypto space.
Looking at on-chain data, it’s interesting to see that the stagnation and rise in the low and mid-30K does appear to have been an accumulation phase, with more network addresses receiving BTC than sending coins.
Indeed, one can also look at the spent output age bands, that show how long coins have been held before moving. One can then see that while 2017 and 2018 showed large moves of profit-taking and, later, of capitulation, in 2021, there’s very little going on. Hodlers are holding.
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