Recap of price performance; A pattern emerges in BTC & ETH dominance; Market structure remains unchanged and ripe for an institutional nudge; Takeaway: Buy BTC and ETH into any near-term weakness; Alpha Opportunity; Metaverse Summer
Recap of price performance
First, let’s quickly recap what we observed the past week for BTC and ETH. Some observations:
1. Below (Exhibit 1) is the 7-day chart featuring the price action of BTC and ETH. Bitcoin surpassed the $48,000 - level, Ethereum traded above $3,300, and the total crypto market cap reached $2.0 trillion for the first time since the industry drawdown in May.
2. Last week we highlighted the fact that BTC traded above its 200-day SMA. We note that it has retested this indicator a couple of times over the past week and currently sits just below this level. We will keep an eye on this over the next few weeks but do want our subscribers to be aware that it is entirely normal for the spot price to straddle this indicator before breaking out (Exhibit 2).
3. Bitcoin broke its all-time high in Realized Cap on Tuesday which currently sits around $380 billion, surpassing its previous record set in May. Realized cap values each separate “coin” in the supply at the price at which it was last moved. Another way to think of realized cap is the overall cost basis of the Bitcoin network (Exhibit 3).
Exhibit 1
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