In the crypto space, the theme of ‘alts outperformance’ plays out further. BTC is down half a percent while alts gain or hold strong.
Let’s not get too comfy, though, the BTC Dominance index can and has typically seen bounces or retracements. Traders can play this out well, by putting alts profits into BTC when said alts outperform and then buying them back when they underperform (become cheaper) relative to BTC if/when the BTC dominance rises. This won’t be a one-time moment: It’s a strategy to put in place—or not.
Back to price action, ETH is breaching new highs, and it’s beautiful to watch. The new record is $2,760. We’ve discussed it quite a lot here, but the fundamentals on the ETH blockchain and the continuous improvements made to the ecosystem, along with the pouring in of capital into DeFi, are all so supportive.
Other alts are doing well as well: I’m currently looking at AAVE and ADA. It is interesting to see BCH is also doing well.
Onto recent news items: We’re seeing further actions from governments against illicit crypto activities. For example, US officials recently arrested the alleged operator of a $336 Bitcoin mixing service.
More on the regulatory side, Ireland is now requiring crypto firms to comply with the AML and KYC rules imposed on other financial institutions, a move some will see as positive.
It was also interesting to see Germany, which has been very crypto friendly, warn Binance over stock tokens, which had been offered without publishing any investor prospectus.
More towards new capital pouring in, Wealthfront, a robo-advisor, now offers cryptocurrency-related products for its users.
By the way, did you hear the rumor that Facebook might be holding Bitcoin?
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.