Yesterday, as markets in the US reopened after independence day, we saw some pretty sharp moves take place. The S&P, Nasdaq and Dow, that were all on an incessant ramp up, snapped their winning streak and fell. The 10-year yield surprisingly was also down on the session, falling to 1.35% (typically you’d expect the opposite). The dollar somehow gained while gold also gained and actually made a run for the $1,800 mark.
Almost as if crypto wanted to balance out the volatility, BTC stayed relatively tame, gaining just 1.34%, currently at $34,100.
I’m still paying close attention to the BTC Dominance index; it continues to fall further. Conceptually, that’s bullish, it means investors are edging out of bitcoin’s safety and exploring alts further.
It seems that yesterday investors were looking at LINK, up almost 9%, LUNA gaining about 5% on the session, and then also ETH and DOT with about 4% gains. AAVE and MATIC show some tame outperformance relative to BTC, gaining 2% on the day.
Looking at on-chain data, it was great to spot this CryptoQuant chart showing the exchange outflows and especially that we’re just hit a year high. Outflows suggest people are withdrawing to private wallets, presumably to ‘hodl’, and are supportive of less supply of coins and therefore less selling pressure. I’ll let you put two and two together.
Another chart from Glassnode shows the continuously growing holdings of the Purpose BTC ETF. This might be -in part- a function of people moving from another crypto-linked product to this one, but, at least to some extent, a continuous interest and bullishness for the asset class.
On the less supportive side of things, it was interesting to see that Binance just announced it will suspend EUR payments, that’s not good for users and of course hints at issues or concerns with EU banking partners. It looks like regulators aren’t done pushing Binance -for now.
In China, news came that Beijing will not provide venues, commercial displays or advertising for crypto businesses. Again, another difficult news for the space and definite Chinese investors.
To end on a positive note, though, it was great to hear of Marshall Wace (an investor with about $55B in AUM) looking to invest in the crypto and blockchain sector. That’s potentially a lot of capital coming in.
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