Moon Mission
Challenging the Accusations of Froth
Amidst the recent sharp rally in the crypto market, investors who weathered the prolonged bear market are understandably cautious, keeping a close watch for any signs of excess. Despite the violence in the most recent rally, we believe it's too early to declare the market as overbought. Our assessment is based on several factors:
- Perpetual futures data indicates a relatively modest level of long speculation, especially when compared to the last cycle. This lack of aggressive long positioning suggests that the market's upward movement may not be as overheated as some fear.
- The improvement in market breadth is noteworthy, yet it's Bitcoin (BTC) that continues to lead the charge. A rally driven by Bitcoin typically signifies a healthier market dynamic, as opposed to one led by less established altcoins. This BTC-led growth signals a more balanced and potentially enduring market uptrend.
- There are some signs of retail coming back into the fold, but for the most part, this rally remains driven by institutional capital.
Perps Data
To gauge the demand for leveraged long exposure in the crypto market, we turn our attention to perpetual futures, commonly known as 'perps'. These instruments are favored by crypto-native investors for...Reports you may have missed
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STX Remains Compelling Beta Exposure, Miners to Outperform in Lower Rate Environment
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