Crypto Strategy: Bitcoin $100k target intact; corporate buyers offer surprise catalyst; Ethereum growing into our $10k target; crypto market on pace to hit $5T
In this week’s crypto strategy note we discuss:
- Bitcoin rebounding from a healthy cooling off period last week as the macro backdrop remains accommodative & bull market remains intact
- Even if Facebook didn’t buy Bitcoin, corporates are coming, and it may not be reflected in earnings announcements yet
- Remaining overweight Ethereum and maintaining a price target of $10.5k as ETH reaches new highs and continues to outperform BTC
- Continue to see more upside in higher beta altcoins vs. Bitcoin as crypto markets are on pace to hit $5T
Bitcoin rebounding from a healthy cooling off period last week as the macro backdrop remains accommodative & bull market remains intact
Bitcoin and crypto markets have been rebounding this week after the prior week’s sell off. A combination of de-leveraging, Bitcoin falling below its 50-day, notable Wall Street firms forecasted a major correction to $20-30k sparking retail fear and the Biden tax plan were all events that took us lower last week.
But market have stabilized and bounced since then.
As we mentioned in our note two weeks ago, we thought a “crypto market cooling off would be healthy”. We’ve seen the price of Bitcoin retrace a little over ~25%, which would qualify as a major correction for traditional markets but...Reports you may have missed
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WHAT BTC SHRUGGING OFF CPI SAYS ABOUT CURRENT FISCAL SITUATION The most significant piece of macro data this week was the CPI. Headline CPI registered at 3.5%, surpassing the anticipated 3.4%, while core CPI remained steady from last month at 3.8%, also above the expected 3.7%. This increase was largely attributed to rising costs in auto insurance and shelter. Consequently, interest rates saw a sharp rise, with the 10-year Treasury...
INFLOWS RESUME On Monday, market sentiments were rattled by a surprisingly strong manufacturing PMI figure, marking the first expansionary reading in 18 months. This led to a rise in rates, with risk assets across the board experiencing selloffs amid renewed inflation concerns and fears that the Federal Reserve might need to implement further measures to cool the economy. However, in our crypto comments video on Tuesday, we outlined a couple...
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