Investors just aren’t ready to give up on equities yet. You can see that with US indexes essentially flat even in the wake of pretty ominous inflation data. Many investors are also waiting for earnings from rather large retail companies and so will need that data to turn bullish again or stay decidedly bearish.
Gold is marking what looks like a top, at $1,680 with the RSI indicator in overbought territory.
In the crypto space, the chart feels a tad flat as well. Now, long-term I’m as bullish as ever but right now indicators and price action seem to signal some bearishness, with divergences popping up and BTC heading below $63K.
Even the BTC Dominance chart looks somewhat range bound, with investors unsure about whether we’re in a full on bull market -where you can place bets on altcoins, more volatile- or whether we’re due for a pullback -and were you’d scurry to the safety of BTC and realise any alts profit.
I do want to give an honourable mention to WOO along with STX; both coins are up while the rest of the market is down and tout strong 7-day performance. Worth checking out.
On a broader scale and to look at the news, it’s amazing to hear of BitGo, currently the market leader for crypto custody, reporting about $64 billion of assets under custody.
We can also see data from CoinShares tracking inflows into crypto-linked investments products and while the most recent week is lower than the previous one, the inflows continue to pour, for the 13th consecutive week.
Lastly, maybe the more important news of day was President Biden signing the infrastructure bill -which is positive for markets as it means more cash flowing into the American system- but also relates to crypto -strangely- as it defines broker dealer. This is good and bad, one one hand it offers some more clarity for regulations but also means that miners and various DeFi operators could be liable to report on data they just don’t really have. So we’re seeing the ignorance from regulators about the technology but also an attempt to move forward regulations-wise… Let’s see where this takes us.