Bitcoin rallies off ~$30k support again; crypto outlook remains choppy for now; macro picture softening; Delta variant may help alleviate a key risk for crypto (Fed tapering); Fidelity institutional survey highlights the big picture opportunity

Bitcoin rallies off ~$30k support again but crypto remains in a choppy market

Crypto is still in a doldrums of summer as many investors have taken a sell in May and go away approach. We think these combined factors below are partially why crypto remains in a choppy market environment for now:

-Institutional investors taking money off table early in year locking in performance fees

-Many institutional investors who were trading crypto are away for the summer months

-Less institutional capital, more retail, lower volumes, and lower liquidity = choppy VOL rising

Yet, Bitcoin continues to hold onto the ~$30-40k trading range it’s been in since late May after briefly falling below $30k yesterday and rallying today.

Source: FSInsight, Bloomberg

Macro picture softening has been a headwind working against crypto

We think a large reason for the recent selling and bounce today has been driven by the broader macro market environment. And we can’t ignore that some macro factors that were supporting the crypto markets are less rosy, at least for now. There is a lot going on in the chart below, so let’s break it down:

S&P 500 which had been hitting all-time highs started getting choppy back on July 12thThe 10Y treasury has continued falling possibly signaling concerns over slowing economic gr...