Many countries are aggressively rolling-out vaccines to bolster economic recovery and it seems to be working. At least investors are optimistic and most risk assets are doing well. Yesterday, though, after several winning sessions, the buying paused.
The S&P closed barely in the red and still around record highs. The Nasdaq closed flat. The Dow closed down slightly. The 10-year yield is sat at 1.62%. The dollar and gold are flat.
Looking at BTC, after two down days, the pause had the opposite effect. While the session had some traders worried, with many longs liquidated and prices touching intraday lows of about 53K, we eventually closed yesterday’s session up, just 1.5% but up nonetheless.
As touched upon yesterday, it was fascinating to see the BTC Dominance index going down during BTC’s down action -as typically it’s the other way around. Even more interesting, as BTC recouped, the dominance is still closing down. Investors are undeniably allocating either fresh capital or some of their BTC holdings/profits to alts.
Amongst the ones to benefit: ADA, XTZ, are outperforming in USD terms and BTC terms; Also ZEC and XMR, two privacy coins, gained on all fronts.
On a broader scale, as you know I like to look at exchange flows. While the on-exchange reserve of coins is still at historically low levels (which is good for prices), I am seeing hints of changes, where the supply growed slightly in the past few days. This might be a temporary move but I thought it was interesting to point out.
For more macro news, it was fascinating to see a flurry of news coming through, all pretty supportive:
- eToro and Kraken are the new/next companies to think of a public listing,
- Four firms have filed for BTC ETF’s in the past three months (VanEck, Valkyrie, NYDIG, WisdomTree)*, and,
- The BOJ will begin to experiment with their own CBDC (central bank digital currency) in spring of this year. Let’s see how that goes.
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