Bonds were bought yesterday, pushing the 10-year yield briefly below 1.3%. Relative to previous levels, this is deemed lower and the trend is bolstering a risk-on sentiment across markets. The S&P and Nasdaq both rose to new records while the Dow remains inches away from its all-time high. Gold now managed to rise and close just above $1,800.

In crypto markets we’re not seeing as much activity. There’s plenty of fundamental news that could move us but sellers and buyers seem to converge at the current $34,000 level. 

Chartists will recognise a pennant forming and narrowing. Typically, those end up with explosive moves up… or down. Maybe I’m giving in to my bias but I would bet on the upside.

As it’s been discussed for a while now, the BTC dominance is marching lower as alts outperform. It’s great to see LUNA and KSM up more than 10%, followed by DOT up 6%. MKR is also making some good moves, up 3.5% and ZEC is also showing some tame outperformance, up about 2%.

A great news that might have supported the crypto space yesterday and nudged investors towards alts was Visa partnering with over 50 different crypto companies to allow clients to spend and convert digital currencies. They also reported that crypto card usage topped $1 billion in the first half of 2021. The significance of these numbers and those endeavours by a payment provider such as Visa just cannot be overstated.

It’s also worth noting that, with those kinds of announcements, I suspect every payment provider is having a board meeting -if it hasn’t already done so- to ask: “What are we doing to remain competitive? Should we go even more boldly in crypto, maybe DeFi?”

Onto on-chain data, there are two charts that caught my attention today:

A CryptoQuant chart tracking the funding rates across all exchanges shows that they’ve remained negative since the mid-May crash. This isn’t surprising but is a good reminder that, well, those don’t remain negative forever. If anything, very negative rates typically signal an over-bearishness and a reversal.

The second chart comes from Glassnode and tracks the BTC activity at various price points. It’s fascinating to see that the current level is experiencing a lot of transactions, even more than when we were at 10-12K, in that consolidation period pre-rally.

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