Morning‌‌ ‌‌Update — January ‌‌8th — Macro and Crypto Markets

Traditional markets are up; crypto markets are up more.

With the progressing political situation in the US (suggesting further stimulus) and the reassurance of vaccine arrivals in the coming months, markets enjoy a risk on tilt, pushing equities to all-time highs. The S&P rose 1.5% to $3,800. The Nasdaq jumped 2.5% on the session. The 10-year yield continued its ascension, now at around 1.08%. The dollar had a quick bounce but at admittedly abysmal levels still.

In the crypto space, as we’ve seen already, bull moves are much more powerful. We’re also testing new highs but after a 6.5% day. BTC which just recently astounded by breaking the 30K mark rose throughout the week and, yesterday, crossed 40K.

The new all-time high is: $40,380

While chartists will look at indicators for some hints of an eventual reversal, when lifted by so much momentum, indicators can be ignored for a long-time. The RSI show we’re very overbought, but that can go on for a long time. Right now, we just retraced slightly, at $39,000.

Alts clearly underperformed during the session, relative to BTC. They’re holding up and recently enjoyed a flush of interest and cash but, on the session, most are either flat or down between 2–7%. Yesterday was a good day for ETH, though, as the total market cap hit its all-time high.

A more momentous milestone hit yesterday was of course the total crypto market cap hitting $1 trillion for the first time. It’s important because instead of showing money rotating through coins, the total market shows that essentially more new/real cash got into the crypto space and the moves are happening in billions. The message is clear, enough people are happy to short their local fiat currency to long decentralised cryptocurrencies.

By the way, as a last information nugget, Elon Musk just became the richest man on earth, passing Jeff Bezos. I wonder what would happen to crypto markets if he decided to allocate just some of his cash (or Tesla’s cash) to BTC.

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