September Slide Continues Despite Positive Underlying Trends
Key Takeaways
- Crypto markets stumble as global equity markets go risk-off in the wake of Evergrande fears.
Strongest selling pressure was from those with high exposure to Asian assets seeking liquidity to hedge against a potential “Lehman” moment for China. - This week reminds us that Bitcoin is relatively early in its adoption phase and consequently, is still a risk-on asset. Macro remains the roadblock between Bitcoin and $100,000 price.
- We suspect continued trepidation in equities markets may lead to a continued dovish stance from the Fed, which may result in greater capital flow into risk-on assets.
- On-chain metrics point to Chinese investors selling Bitcoin, long-term Hodlers accumulating, and broader Ethereum selling from retail investors.
- Miners continue to flee China, building out new operations in friendlier jurisdictions.
- The Bottom Line: As China-related fears spark risk-off sentiment in global markets, digital assets show positive underlying trends among institutional adoption, Hodler accumulation, and mining operations.
September Slide Continues
If the last seven days gave us anything, it was a fresh reminder that regardless of its ultimate use case as a digital monetary base, Bitcoin is relatively early in its adoption phase and consequently, is st...Reports you may have missed
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