If you invest in stock, you’re always looking at interest rates; they guide risk appetite in a very real way. After Treasury Secretary Yellen commented that rates might have to rise somewhat to keep the economy from overheating, a general risk-off tilt took over Wall Street. While indexes fell they eventually closed back at ‘ok’ levels.
In the crypto space, the pain seems to linger.
BTC fell 5.4% on the session, from $57,000 to $54,000. Mind you, those are not bad levels to be at, but the reaction to traditional market moves is felt.
Interestingly enough the BTC Dominance, which typically rises in sell off’s, continues to drop. ETH is indeed holding up much better, falling about 3.9%, in a first down day in about 10 sessions.
Alts offer a different, more varied picture, with some underperformance and some outperformance. LINK is boldly breaching new highs, rising 11% and freakishly close to $50. LTC rose about 6%. UNI gained as well. Other alts like STX, BCH or DOT are more in line with ETH and BTC.
Away from pure price action, there’s plenty of interesting news to look at.
Maybe less shocking but very relevant for the normalisation of cryptocurrencies, the S&P Dow Jones Indices is launching crypto indices, namely for BTC, ETH and a diversified large cap index.
It was interesting to see Deribit’s tweet on the growth of ETH’s options, saying: We have no opinion on an ETH-BTC flippening but our ETH options volume did flip BTC options volume for the first time. $1.4B notional.
Lastly, regarding Ethereum and thanks to a Glassnode chart, we can see a large amount of coins presumably being directed from exchanges (where the reserves are diminishing) and into smart-contracts or DeFi (where we can see the supply growing).
By the way, last information nugget, did you hear about eBay’s CEO? Apparently he’s looking at payment options including cryptocurrencies and is also exploring NFT’s. Seems like more and more people are jumping on the bandwagon.
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