Yesterday, a continuation of the previous session’s narrative took place. Many investors were soothed by comments from the Fed on inflation risks being tamer or more temporary than expected. The S&P stayed in place, inches away from the all-time high, the Nasdaq marched on further to reach new record highs. The dollar index went further down intraday but ended the day pretty much flat.

I’m also looking at the volatility index for the S&P (the VIX) and it remains constrained at very low levels, currently at 16.3. But how long will it stay down is the real question.

In the crypto space, BTC is timidly trying to walk back on the massive losses from two days ago. On the session, prices rose 3.3% to the current $33,600. One can see the uncertainty on the chart, though, with the long wick that pierced below 30K in the previous session and, during this session, an upper wick that aimed for 35K but failed.

Looking at the BTC dominance index, we can see a slight retracement, from 48 to now 47.25. Alts indeed outperformed on the session. There’s a regain of optimism in the air and that means more risk taking.

Among the best performers, GRT is up about 20%, LUNA and MATIC gained 12%, ADA and LINK gained about 8%. DOT and ETH gained between 7% and 5%. So basically the underperformers from the previous session were bought cheaper.

Maybe a similar dynamic is happening with BTC, on a broader scale. I came around an interesting chart, by CryptoQuant, showing that exchange reserves seem to be decreasing again while netflows also fall. This suggests that large players have bought and are now taking coins off. This market which a lot of people feel is another 2018 might actually just be a retracement in which whales and institutions accumulate.

It’s also interesting to see data by CoinMetrics tracking miners outflows which have also decreased, showing that the selling that took place in May has -at least for now- subsided. 

Another bullish signal, but to be fair one that has been ongoing even during the move down, is the decreased stablecoin ratio -a decrease being bullish- which hints at a lot of buying power still on the sidelines and potentially to be used for another round of purchase.

Less bullish, though, the SEC in the US has delayed their decision on the Valkyrie BTC ETF which a lot saw as a gateway for the general public to gain easy exposure to BTC and later crypto.

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