In the crypto space, we definitely moved lower yesterday. BTC fell over 5%, from a bit under $36,000 to now a bit under $34,000. The BTC Dominance index went down as alts continue to hold up better.
Everything is still in the red, by the way. ETH and MATIC are both down 3.5%, but still ended up being the better performers. ADA and AAVE fell a good 5%. DOT fell a hefty 7%.
Besides price action, it’s worth checking out a few of Glassnode’s report charts.
One shows a move from very liquid supply into simply liquid supply. That’s supportive and shows that despite the sell-off, a chunk of traders moved their coins away from exchanges.
On a less supportive note, a chart showing the number of entities with a non-zero BTC holding illustrates that, well, there are fewer of them. This suggests less enthusiasm, less participants, and less capital. The pattern also resembles the sell off that followed 2017’s high.
A third chart shows the long-term holder behavior, which is maybe a more significant piece of data. It shows that they have been holding and accumulating. Naturally, if prices were to drop further, you’d see that faith and commitment tested, but, for now, long-term investors are confident in these levels.
Onto recent news and articles: Over the weekend, El Salvador moved forward to make BTC a legal tender, and now, there are rumors that Paraguay might do the same. Even more outlandish, maybe Brazil will, too.
It was also interesting to see MicroStrategy announce a proposed private offering of $400 million of senior secured notes to buy BTC. This is a move that might help MicroStrategy, which has been suffering significant fluctuations (aka dollar losses) quarter-to-quarter. Of course, it might also help the crypto space.
Oh, and did you hear that US regulators successfully recovered millions in cryptocurrencies paid to the Colonial Pipeline ransomware hackers?
Written by: Justin d'Anethan, Sales Manager
With investors looking at the next Fed monetary policy meeting, equity indexes rose yesterday. The S&P reached new records while the Nasdaq closed within 20bps of the all-time high.
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.
Yesterday, the US reported CPI data—an index calculating the price increase or decrease of a basket of goods. The number is higher than expected and indicates inflation is picking up.