Last week finished on a strong risk-on tilt note. With fears about inflation tamed somewhat, investors continued to buy equities at the expense of other assets. The S&P probably had its best week of the year, reaching new records on Friday. While not reaching new records, the Dow also jumped higher. The dollar and gold are staying remarkably put.

In the crypto space, while Friday was admittedly a difficult day, the weekend was actually relatively bullish, essentially walking back on Friday’s losses after a quick intraday visit to 30,000 on Saturday.

BTC is currently at $34,500, still safely within its 32K - 42K range and, in my opinion, maybe forming a bottom in the lower 30K’s that could take us back to -at least- the top of said range.

Alts are really not the focus at this point. This might actually be a great dynamic, the opportunity to get into things that might seem less attractive by the main market. The BTC Dominance index is still hovering around 48.

Amongst the best alts performers, ETH is up 10% on the session (Sunday). COMP also outperformed with a 15% rise. We’re also seeing coins like LINK, ADA and AAVE essentially following ETH up, gaining around 8%.

With regards to onchain data, two charts from Glassnode caught my attention. One chart shows the profit and loss ratio of addresses and you can see that a lot of people lost during the current retracement and range. This is painful for those investors but, for holder and contrarian investors, could actually signal a bottom. The second chart is related and tracks the psychology of the market for short-term holders and, well, they’re capitulating which, again, can be a positive signal for long-term holders.

With regards to recent news, the tone is rather bearish. Everyone is looking at Binance and the UK, where the FCA has essentially ordered Binance to stop activities by the end of June and keep all records for review. In a sudden twist, Binance announced on the same day that it had acquired an FCA-regulated entity which would then serve as the new Binance UK. There’s now rumours that the regulators might not like this type of countermove and might move to take away the entity’s license.

In other parts of the world, things seem to look better. In El Salvador, the government will send $30 worth of BTC to its citizens and we just read that Athena will install about 1,500 crypto ATMs. Further out, in Brazil, the first BTC ETF was just listed. They’re embracing crypto, it seems.

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