Never Waste a Good Liquidity Crisis
Key Takeaways
- Bitcoin stalled this week but continues to trade above its 200-day SMA. Ethereum received some late inspiration and has surged beyond $3,500 for the first time since the industry drawdown in May.
- Dating back to 2011, September is the only month in which $BTC has experienced a negative average return (this should not be a grave concern for investors).
- Bitcoin’s supply action last week was an anomaly as coins resume being removed from exchanges and LTH supply reaches an all-time high.
- Ethereum price action reflects similar bullish supply dynamics ushered in by EIP-1559 and ETH 2.0 staking.
- Put/call ratios for both Bitcoin and Ethereum reflect positive investor sentiment.
- Grayscale’s $ETHE has outperformed the coin as the discount to NAV recedes. Meanwhile, $GBTC still presents an opportunity for investors.
- Bottom Line: Our stance remains consistent, and we continue to buy $BTC and $ETH into any near-term weakness.
- Crypto on Capitol Hill: Recent agreement on the Budget Resolution allows for House consideration of Senate passed bipartisan bill under a “closed rule” that will prohibit any amendments, including crypto broker fix.
Weekly Market RecapFor the first time in over a month, Bitcoin failed to establish a new local high, as its price fluctuat...
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