Pullback. That’s what we’re seeing in markets. All of it is mostly driven by rising yields. It’s been on an incessant ramp up, pushing the 10-year yields well above 1.5%. Along with yields, the dollar is rising, gaining strength. This weighs on tech stocks or, more broadly, securities with -perhaps- too high valuations.
As a result, equity indexes in the US, in the EU but also this morning in Asia are pushed down. To mention just one, the Nasdaq is down over 2.5% on the session alone.
I wish I could say it’s an equity thing but, from a macro perspective, it’s clearly not. Gold and crypto also feel the pain of rising yields and dollar strength.
On the session, BTC is down almost 3%, back to just below $41,000. The BTC Dominance index is rising, above 42 now.
Besides UNI, benefiting from a real need for decentralised exchanges in a period of regulatory crack-down, most other coins are in the red, following their leader. Among the worst performers, we’re seeing ATOM, LUNA and XTZ dropping a hefty 8-9%. The performers yesterday are getting sold en masse, somehow.
Away from price action, let’s look at some interesting charts.
On a short-term basis, CryptoQuant spotted the whale ratio picking up yesterday, with large players depositing and selling coins on various spot exchanges and hinted at a temporary pull-back.
Still on a bearish note, Glasssnode data shows the on-chain activity for BTC and shows that the number of new entities isn’t at a level that feels terribly bullish, if anything, it’s hinting at sideways or down action, after a significant pick-up during bull-runs.
Longer-term and still from Glassnode, something I find incredibly bullish is the continuing trend of a reduced liquid supply of coins. Essentially, more and more coins are being held long-term. This takes things back to basics: there are less coins to go around while the interest is growing. While this is at play, prices should be well supported.
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