Last week finished on a risk-off tilt, with equity indexes falling. Despite positive earnings and positive expectations, covid cases rising, political moves in the US and tensions in Asia dampened investors’ spirit.
In the crypto space, almost as if we were always taking the other side of traditional markets, Friday and Saturday were great days. Bitcoin rose almost 8%, from $53,500 to a tad under $58,000. On Sunday, though, BTC retraced slightly, falling 2.5%, currently closing at $56,400.
During the move up, BTC’s dominance gained but then fell again quickly -almost as if investors took profit in BTC to then pour capital into alts. The Dominance index is now below 49.
ETH is unrelentlessly breaching new highs in a truly astonishing way. There’s no move back or pause, the chart shows a string of ‘up’ days for the past seven days. The new all-time high is $2,985. The $3,000 mark begets, heck, why not the $4,000 mark ! (the latter would require a 35% move up, though)
Other alts are doing well but seem more correlated to BTC. We saw powerful moves up on Friday and Saturday but some pauses or pull-back on Sunday. Before falling slightly, LTC was up 8%. LINK gained 13%. BCH rose 14%. AAVE was up 15%.
If you’re uncertain about the continuing interest by institutions and corporations for BTC, just look at CryptoQuant’s Coinbase Pro Outflow chart. About 11,800 bitcoins were taken out, suggesting well over $500,000,000 were bought and sent to (a) private wallet(s).
On the Ethereum side, it looks like miners brought in more than $1.5 billion in revenue in the month of April alone, a record and a testament of the activity and enthusiasm we’re seeing for smart-contracts and the DeFi space.
Less positive, it seems that the drama in Turkey has led the government to add some of the crypto firms to the money laundering and terror financing rules. This is ultimately a good thing and is a natural result to regulators making sure even newer fintech companies behave in accordance with the law.
Oh, as a last information nugget, for anybody operating in the crypto derivatives space, you will know of Skew.com. They have or are about to be acquired by Coinbase.
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