It feels a bit silly to talk about traditional markets when the crypto space outperforms by so much.
Since the last morning update, on the 30th of what is now last year, a lot has happened. Sure, the S&P and the Nasdaq are up, treasuries are up and the dollar is down but all of them by marginal amounts. Maybe gold is the good surprise, back above $1,900 after a number of ‘up’ days.
Bitcoin is leaving all of those behind, though. Over the past few days, BTC breached 28K, 29K, 30K, 31K, 32K, 33K and 34K. To give some context, a month ago, we were still below 20K. To give even more context, from Jan 1st 2020 to Jan 1st 2021, BTC rose 320%.
At the time of writing, BTC retraced down slightly from the all-time high ($34,810) and is closing at $33,400. That still leaves us almost 14% above the start of the weekend.
While alts haven’t performed as well as BTC during these past months, it was nice to see that ETH along with most of the major cap coins have rebounded somewhat, both in USD terms and BTC terms. ETH is currently closing the day at $990, up 35% since the beginning of the weekend. LINK is up ~15% over the two days, ADA gained 15%, BCH is up 23%, LTC rose 25%, DOT gained as much.
The thing to look at now is the BTC Dominance Index. No prediction to make here but the bout of bullishness on BTC pushed it up to 72, a key resistance level, which seems to have held as we’ve now pulled back down to 70.
This game between BTC and alts really comes down to the strength of the institutional demand (predominantly focused on BTC, maybe ETH), the cycling of money within the crypto space between coins and the FOMO fueling retail interest in BTC but maybe newer / more speculative projects.
I wish you a great new year and look forward to watching the crypto space grow and -potentially- change the world.