If you’re a crypto investor feeling bearishness only in crypto, do look at traditional markets. There’s nothing as volatile to be seen but equity indexes are all broadly lower. Investors are looking at jobs data (jobs added, unemployment claims, etc.) and not seeing the pick-up they hoped for. With the covid delta variant being a real thing, markets are cautious and probably will remain cautious in the next few sessions.
In the crypto space, in the midst of pretty massive liquidations, really impacted by and impactful for derivatives trading taking leveraged positions, markets are almost at a stand-still.
I’ve heard more about the presumably unexciting El Salvador BTC implementation but I can’t believe smart money expected a big ‘bang’ on the first day -or even in the first weeks or months.
Right now, BTC is at $46,200. Very -very- interestingly enough, the BTC dominance is lower, suggesting that traders have taken advantage of the moves to allocate to alts, either with stablecoins or by transitioning some of their BTC.
And indeed, we’re seeing some outperformers pop up: LUNA is up 10% on the session, KSM and MATIC both gained a healthy 4.5%. Then we see coins like XTZ, GRT, ETH, DOT, etc not rising much but in the green and doing better than King Coin.
Away from price action, I’m hearing two news articles which I find incredibly bullish. Panama and Ukraine are both looking at passing bills to regulate cryptocurrencies. Note that this isn’t a legalisation at tender but just a regulatory framework for the use, transaction, etc of cryptocurrencies, giving some much needed clarity and helping actors in that jurisdiction to operate in a credible manner.
A second and last thing I want to touch upon is a chart by CryptoQuant showing the exchange supply of BTC. One might think that a lot of panic or large transfers into exchanges triggered the sell-off but looking at the metric, it keeps on going down, highlighting the the move was really derivatives driven and that the fundamentals that took us higher recently haven’t really changed.
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