Weekend Surge Brings BTC to $42k, Inflows Remain Strong

Bitcoin experienced yet another weekend rally, breaking above $42,000 for the first time since the Terra unwind in April 2022. BTC has since retraced slightly, stabilizing around the $41.5k mark. A major beneficiary of the rally was STX -0.41% , the Bitcoin layer 2 token we pinpointed as a buy in our recent strategy note. The token has rallied impressively, marking an approximate 25% increase today and a 50% bump since the start of this month. ETH, while also on an upward trajectory and currently trading above $2.2k, hasn’t quite kept pace with Bitcoin, leading to a noticeable uptick in Bitcoin’s market dominance over the past 24 hours. Parallel to the crypto rally, we’ve observed a notable jump in crypto equities. COIN, soared to a new YTD high, reaching around $145 per share. Miners aren’t left behind either, with WGMI registering a robust 10% gain today. This rally is particularly noteworthy as it persists amid a bounce in interest rates and a simultaneous decline in both gold and equities, with major stock indices nearly 1% down today. This divergence underscores the current low correlation of crypto with other traditional macro assets.