I also like to look at commodities like copper or lumber as a sign of economic health, and right now both of those are at record levels. In the meantime, the USD continues to lose value against its peers.
In the crypto space, it's a field of green. As suggested in earlier briefings, plenty of investors saw the recent retracement as a buying opportunity. On the session, BTC rose almost 10%, from $49,000 to now $53,700.
This happened while exchange reserves remained at all-time lows and the stablecoin market cap continued to rise. Miners weren’t selling and, if anything, we saw whales depositing BTC into derivatives exchanges—a behavior typically seen when large players want to take massive long positions after prices bottom out.
With BTC doing so well, one could assume it would be leading the charge, but nothing could be further from the truth. Alts are actually still outperforming—as they have been recently—pushing the BTC dominance index even further down, now at 51.2.
The alts dynamic is very interesting. It’s almost like performance has been ordered from smaller/newer to larger/older, with the newer ones outperforming. ETH, LTC, and LINK are up about 8%. DOT and ADA both rose 11-12%. AAVE and SNX jumped a healthy 12-13%. XTZ and XLM rose a tad over 15%.
Rather than talk about news, I want to share some charts from Glassnode’s recent report. You can clearly see market dynamics during this retracement.
Newer buyers were shaken out while longer—maybe steadier?—holders held on or increased. This is apparent not only on the short-term SOPR (spent output profit/loss ratio), but also on the age-band spent output, where you essentially see newer addresses selling at a loss while older addresses are keeping their coins. On their side, miners have also been accumulating rather than selling.
Written by: Justin d'Anethan, Sales Manager
Welcome to the Weekender: Your weekly round up of the most viewed stories of the week, as voted by you, our readers. This week has seen the negative news flow replaced with tales of adoption, it appears the central bankers, country leaders, and the financial institutions have all agreed: Digital finance is here to stay.
Bitcoin has remained subdued today, with a tight $1,500 dollar trading range. Weekend trading sessions have been volatile as of late, which heighten awareness and interpretations of price action. We could well see fake out moves to both the upside and the downside this weekend, as the market looks for a move that doesn't transpire.
While global investors seem to believe we’re in a recovering economy, the inflation data that came through earlier today in the US, left most selling risk assets for now. Stocks retreated and bonds were bought, pushing the 10-year yield below 1.5%. Gold also edged lower.