It’s been a while since we’ve seen interesting moves in traditional assets -relative to crypto. Yesterday, while the 10-year yield marches on to above 1.55%, equities retraced on pretty much all the gains since the beginning of this year.
The S&P had intraday lows down more than 2.5% and is closing down 1.4%, at $3,750. The Nasdaq is closing down another 2%, essentially down 10% from the all-time high reached last week. Gold isn’t faring much better, now down below $1,700.
There’s no reason to gloat for crypto investors, BTC is down as well, about 4.20% on the session, at $48,000. For anybody who bought BTC before Feb 2021, this is still a good position to have, but, for people who bought at the all-time high, their holding would be down 16%.
While ETH is showing strength in the face of adversity, meaning it’s outperforming relative to BTC, most of the alts are down in USD terms and BTC terms, notably DOT and ADA which are faring worse than others. Interestingly, though, the BTC Dominance index actually fell -one of the rare times it is lower during down moves. Would people start to feel safer in alts?
On a broader scale, while traditional markets might look scary and while we’ve risen to extended levels in crypto -one might argue, at least- a piece of data from Glassnode, in the same vein as previous data shared, shows the illiquid supply of BTC growing. That’s a positive, as it means the number of ‘hodlers’ is growing, despite the sell-off.
Away from price action and with regards to crypto news, if you haven’t heard of it yet, Arthur Hayes, the founder of BitMEX, is discussing a surrender agreement with the US prosecutors. What a fascinating story to watch unfold.
Still in the US, the IRS issued a paper clarifying the reporting requirements for crypto bought with fiat -a welcome move as clarity actually helps large players get involved and also solidifies the place of crypto in the global economy.
Lastly, a JP Morgan survey shows that 78% of institutional investors aren’t likely to invest in crypto. Considering how long they’ve been wrong about BTC, I can’t wait to see how this new piece of data plays out. A bon entendeur, salut.
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