With the US on holiday, global markets saw quiet moves across assets. European and Asian equities retraced while gold held steady above $1,900.
Crypto markets (trading 24/7) didn’t rest and, unlike equities, rose. BTC gained almost 5%, rising from $35,500 to the current $37,300. It’s interesting, by the way, to note that the correlation between BTC and gold is at its lowest ever; I suspect a lot of people are starting to focus on the former at the expense of the latter.
As one would expect, with the risk-on tilt, alts performed well and pushed the BTC Dominance index back in the 42’s. LINK and AAVE stand out as the outperformers, both rising a healthy 18% on the session. ETH and DOT follow, both gaining about 13% on the day. We’re then seeing ADA and also XTZ, up around 10%.
Zooming out of the day-to-day price fluctuation, the question on most people’s minds right now is still whether: we’ve hit a bottom or if we’re due to go lower still?
I still don’t like to predict markets or make guesses but fundamental data can help us see how market participants are playing this current retracement.
Thanks to Glassnode data (them, again), we see short-term holders in deep loss and continuing to sell. The majority of long-term holders are still in profit but the mid-30K level is where the cookie crumbles, depending on whether we bounce up or break down, their faith will be tested. So far, they seem to be accumulating instead of panicking.
To illustrate the broader crypto space, another chart shows miners and long-term holders following a similar trend: nobody’s selling. We’re missing a view of whales but previous data showed that they were selling around the top, bought some back in the lower 30K’s and might be waiting for retracements lower to buy back their full position for a monster profit. Short-term holders, of course, are the ones selling at a loss, it seems.
That’s all I wanted to cover today. Maybe two interesting pieces of news to close it off:
DBS issues $15 million worth of digital bond, the first security token offering for them
Really interesting to see a good chunk of the mining power is popping up in Argentina, where cheap/subsidized energy helps participants to power growing operations. Maybe it’s time to move to Buenos Aires.
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