Morning Update - December 28th — Macro and Crypto Markets
We didn’t have an update on the 24th December, 25th December and the weekend. It is now the 28th December and a lot has happened.
In traditional markets? Not really, things are essentially flat. Towards all-time highs for equities but stagnating. Gold just traded up this morning, hinting at a potential risk-on session.
Crypto, though, never sleeps and doesn’t take holidays either. On the 23rd BTC closed slightly above 23K. On the 24th, we remained in range. On the 25th and 26th, prices pushed to all-time highs, breaching the previous $24,300 high, then breaching 25K, then breaching 26K.
On the 27th, yesterday, BTC pushed even further up going to 27K then past 28K. The new all-time high is $28,400. From Jan 1st to ATH, that’s about 300% up. At that point, Bitcoin’s market cap was well over half a trillion. Let that sink in.
Since then, prices have retraced down, however. You’ll see the tweets of panic from traders as we close the session “down” to $26,525… still over 10% up from the start of the weekend.
What about alts? It’s a bloodbath. Not really in USD terms, in that respect they’re mostly benefiting from the bitcoin bullishness. In BTC terms, however, they’re plunging in a pretty shocking way. I’ll let you look at the charts but aside from ETH and LTC, most of the other coins relative to BTC are just swan-diving down (I’m thinking of LINK, BNB, ADA, XMR, XTZ, DASH, etc.).
The BTC dominance had an intraday high of 72, inches away from the multi-year resistance at 72.40.
Needless to comment on XRP. Since the SEC action against the Ripple and its founders, prices have plummeted down -in dollar and BTC terms.
Speaking of the SEC, they’ve now sued a crypto hedge fund manager in New-York. The founder of Virgil Capital and four other entities allegedly defrauded investors in his $92 million arbitrage fund. It looks like authorities are keeping an eye on crypto activity and not afraid to take action.
In any case, as always the crypto space will be fascinating to watch. For now, I’m just curious to see how the massive gap created on CME futures (at 23,700) will play out.