Good Price on Bad News is Good News
Good Price on Bad News is Good News
Last week, we discussed the piping-hot inflation print and expected additional volatility around this data point. On the contrary, markets behaved resiliently, with legacy markets and crypto rallying hard from last Thursday to today.
The market had what seemed to be its first winning week since March as $BTC surged 18%, while $ETH left the rest of the market in the dust on the back of increased interest in the Merge trade (more on this below), rocketing nearly 50% over the same period.
To get right down to brass tacks, we find this week’s price action incredibly encouraging. While considerable short liquidations undoubtedly exacerbated the bullish moves, we saw significant spot volume in both BTC and ETH markets, and derivatives exchanges witnessed a sizeable increase in OTM calls for September and December. Further, bullish price action on the back of bad news is always a fairly reliable sign of a market bottom.
In addition to the rough inflation data, crypto markets have steadily climbed despite headlines that include:
Tesla sold its bitcoin.The DOJ arrested a former Coinbase employee for wire fraud.The SEC filed a civil case parallel to the DOJ, accusing the Coinbase employee of insider training, thus implying that seve...Unlock this article by joining our Community!
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