Things Could Get Weird
Moving Sideways
To the relief of many crypto investors, the market has mostly churned sideways this week. Volumes have receded following the large selloff a couple of weeks ago as Bitcoin fights to avoid its ninth consecutive red weekly candle.
As we have been discussing, altcoins have not found much respite amid the market tumult either, as bitcoin dominance continues to show strength, surpassing 46% again this week. This is an effective demonstration of bitcoin’s safer risk profile relative to altcoins.
The Global Picture
If you follow our research regularly, you are well-versed in bitcoin’s risk profile among traditional macro assets and understand that bitcoin, despite being designed as a form of “macro insurance,” trades in lockstep with earnings-deprived tech stocks. Following the trend of $QQQ during US market hours will provide reliable direction on how bitcoin is trading on any given day. This is important to understand and appreciate because it presents a framework for how to trade this asset amidst tightening monetary conditions, however, bitcoin is a global asset that is traded 24/7 and therefore is unable to follow QQQ every hour of the day.
Thus, we considered it relevant to examine – how does b...Unlock this article by joining our Community!
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