EQUOS — Morning Update — October 21st
After the previous session’s sell-off, equities bounced back slightly in the US. Investors focused on hopes of a stimulus bill and disregarded the landmark case from the Justice Department against Alphabet’s Google, accusing the search engine of anticompetitive practices.
The S&P had fallen almost 2% on Monday, and yesterday, picked up again, but only by 0.5%. Treasuries, on the other hand, remained under pressure, with the 10-year yield now at 0.8%. The dollar continued to weaken. The pound ascended further, up yet another 0.5%. Gold is also rising — albeit timidly — at $1,911, but still very far down from this year’s high. Copper is now proudly sitting at $3.15, above its 2-year high.
It pleases me to say that Bitcoin is currently outperforming most of these, even the good performers. We ended last week at around $11,320 and are now sitting 5.2% higher, at $11,910. Yesterday’s session closed 1.25% up, and we actually retested $12,050 before retracing to our current level. You can also see the open interest on the CME rising significantly these days, highlighting the shift in institutional perception toward BTC.
In the alts realm, it pleases me less to say that today was an absolute bloodbath. ETH did not benefit from BTC’s move up, and instead fell 3%, from $379 to the current $368. LINK followed suit, falling a massive 10%, from $10.9 to $9.8. XMR fell 6.4%. XTZ fell 6.6%. ADA fell 6.5%. DASH fell 5.5%. XLM fell 5%. LTC fell 2.5%. DOT fell about 2.3%.
In case you’re wondering, the BTC Dominance index rose 1.65% on the move, currently at 61.65, massively up from last week but especially the previous months. The move toward BTC may very well be a delayed reaction to the many failures happening in the DeFi space, eroding trust in the multitude of projects and strengthening confidence in the simplicity, clarity, and reliability of BTC.
It’s also impressive to see the rate of stablecoin active addresses strongly rising. Typically, as more people get into the crypto space, the initial fiat bridge is stablecoins. We equate this to dry powder for trading, or hodling, cryptocurrencies.