Morning‌‌ ‌‌Update — January ‌‌12th — Macro and Crypto Markets

Although one can’t say that BTC is a leading indicator for the traditional markets, the risk-off move we saw yesterday definitely hinted at moves seen outside crypto.

Yesterday, the Nasdaq closed 1% down, while treasuries remained flat. Gold stayed flat as well, but the US dollar bounced further. This is part of the equation when looking at crypto — the relative value of the dollar.

In the crypto space, BTC experienced a relatively strong pullback. I say relatively because even after intraday lows of about 20% and a close ~8% down, prices are higher than they were just five days ago, and still thousands of dollars higher than ten days ago.

Prices retraced to $30,100 at their lowest and are ending the session at $35,000.

A lot of people felt they missed out on cheaper prices when we were testing the 40K’s and I assume plenty filled their pockets with ‘discounted’ bitcoins. Let’s see if the sale endures.

The BTC Dominance index clearly bounced back on the day, but is still below 70 and a distance away from the dangerous 72 levels. Alts clearly took a hit, with ETH closing the session down 13% after an intraday low of 27%. LINK is ending the day down 10%, DOT fell 12%, LTC is down 18%, and BCH fell 20%.

A total of $2.74 billion positions were liquidated over the last 24 hours. It’s worth noting that these liquidations are to be expected and healthy to an extent. Most of the leveraged long positions that could be liquidated were cleared, meaning a lower likelihood of further liquidation/volatility events in the near future.

It’s also worth noting that, while this is happening, the number of addresses with more than 1K BTC continues to grow, showing that users, cash, and interest are not shying away, even during downturns.

On a final note, did you hear that Bakkt (ICE’s crypto exchange and custodian) is expected to go public via SPAC, with a $2.1 billion valuation?

Passionate about financial markets, long-term investments, the occasional short-term trade and disruptive technologies.