With the US coming back from a long weekend, one might have expected some strong moves in equity markets. That didn’t happen. Most indexes traded barely half a percent down. The 10-year yield rose back above 1.6%. Gold is teasing investors, currently trading at $1,899.
It just gives a feeling of uncertainty, maybe split between economic optimism and inflation fears.
In the crypto space, things aren’t moving much either. BTC fell just 1.4% on the session, currently trading at $36,600.
The BTC dominance is just edging lower, now at 42.6, but you don’t see altcoins truly outperforming. DOT is holding up on yesterday’s gains, ADA is closing in the green but really just flat. The outperformer today, for some reason, is THETA.
On a much broader scale, if you look at the BTC monthly chart, the picture looks very scary. Indeed, this performance was the worst May performance for BTC, down 35%. As mentioned in earlier briefings, I think the fall could be actually healthy, as it reset a lot of the indicators and also definitely sobered up a lot of the risk-hungry investors.
Away from price action and looking at the news, it’s great to hear of the ETC group, getting ready to list a Bitcoin ETP in London, on the Aquis Exchange. It’s always supportive to have more capital pouring in the space, for people who don’t want to hold actual coins but still want a direct and physically-back exposure.
An interesting development, also, is Coinbase now allowing users to use their credit card via Apple Pay and Google Pay and earn crypto rewards. Undeniably, this will get more people looking at crypto and make it more approachable which, in the long run, grows worldwide adoption.
As a last information nugget, I came across a chart from Ecoinnometrics showing the proportion of Bitcoin’s market size relative to Apple, gold and bonds… As you might expect, there’s plenty of room to grow and the chart is rightly entitled “Why you are still early”. And we are.
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