EQUOS — Morning Update — November 30th
While equities continue up along with treasury yields, the dollar retreats. Interestingly, gold retreats as well, now at $1,785.
So BTC continues to remain uncorrelated with gold. Friday, after a bout of volatility that shook many investor’s confidence, prices regained. It seems that all the traders ‘ready to buy the dip’ actually did. From the mid 16K’s, prices have now regained the 18K’s (now at $18,200) and seem to consolidate back inside the upward channel that started back in October.
Alts weren’t left behind this time, with some even outperforming BTC on the way back up. ETH is at $575, after a 6.6% rise on the session. LTC rose 8.7%, currently just below $80. DOT is up 6%. ADA is almost flat but following a +17% on Saturday.
There is also plenty of news, data-points and other factors to consider too.
The number of whale transfers onto the exchange has picked up. To be fair it was at a historical low but the change in trend might mean larger holders are getting ready to cash out. BTC inflows being larger than BTC outflows (as they are now), typically means more selling pressure.
The stablecoin user deposit on the exchanges is decreasing -that means less dry powder to get into crypto. That would reduce the buying pressure we need to break 20K or even go higher.
As most of you saw, the Chinese police seized about $4.2 billion worth of crypto from the PlusToken scam. Those coins will need to be handled somehow and might be simply sold off.
On a more supportive note, though, the bitcoin mining difficulty increased 8.9% yesterday, a second positive adjustment in a row, which is typically seen as a positive for the space and activity/security of the Bitcoin network.
Lastly, but maybe more importantly, we saw Guggenheim’s $5 billion ‘Macro Opportunities’ fund filing an SEC amendment that would allow them to invest up to 10% of the portfolio into BTC. Now, of course, that doesn’t mean they will do it now -or at all. The importance of the move, however, cannot be overstated; this is a massive fund, a representative of the traditional space, and the buying power this represents (about $500 million) will definitely turn heads… probably institutional heads.