NUGGETS OF ALPHA
For the 6th consecutive week, digital assets investment saw outflows (~US$39m)
Crypto dipped into the fear zone after spending most of the last three months in neutral
Since the beginning of April 2023, the crypto market has had a net sell-side regime
The “Chokepoint 2.0” political regime continues to spread narratives to kill crypto
Bitcoin dipped below the 200 WMA and rose above despite all of the FUD
10K+ Whales continue to accumulate Bitcoin while everyone else is selling
Ethereum is ranging from 1,744 to 1,919 as trade volumes remain depressed
Whales are stacking Ethereum, exceeding the August 2015 all-time high levels
USDC supply has fallen by $15.7 billion in 2023, BUSD by $11.5 billion in 2023
Solana has 24x more daily transactions than Ethereum and 57x more than Bitcoin
CZ and Brian Armstrong will fight the SEC with large war chests and the best legal representation
Swift is testing blockchain interoperability with over a dozen institutions using Chainlink (LINK)
The NASDAQ and Bitcoin have converged, both up around 16% this quarter
The current price-to-sales ratio for the S&P 500 is 2.44; ~39 for Nividia
~21% of all office space in the US is empty (significant deflationary force)
If you use any leverage, have enough cushion to absorb the drawdowns
The SEC is getting ten states in the US to sue Coinbase
ETH, SOL, AVAX, XRP, and TRX beat BTC over the last seven days. BNB got hit, and we all know why.
BTC is down 2.66%, with ETH down only 0.6% for the week. XRP is the sole name in dark green, with all of the FUD related to crypto exchanges, altcoins, and the industry.
Thanks to the SEC, this was a rough week for the top 3. However, all of them are in a V-shape recovery after the FUD from this week has begun to settle.
In a repeat of the last five prior weeks, the focus remains on Bitcoin, with outflows totaling US$11m. The outflows in short-bitcoin also continued with US$11m. This run of outflows is far more dramatic for short-bitcoin, representing 36% of total AuM, while total AuM has fallen from its mid-May peak of US$198m to US$144m peak today. This 27% decline is almost solely outflows and far greater than long-bitcoin, which saw only a 3% decline in AuM over the same period.
Altcoins, relatively insulated from the recent negative sentiment, also saw outflows last week. Most notable were Algorand, which saw 65% of AuM outflow last week (US$8m), and Ethereum at US$5.9m. Litecoin and Uniswap saw minor inflows of US$0.5m and US$0.2m, respectively.
Digital asset investment products saw outflows totaling US$39m, representing the sixth consecutive week of outflows totaling US$272m.
We dipped into the fear zone this week after spending most of the last three months in neutral. However, this is not reflected in the price.
Exchange inflows can be used as a measure of buy-side and sell-side pressure in the crypto market. BTC+ETH exchange inflows represent sell-side pressure, while stablecoin inflows represent buy-side pressure. Negative values suggest more sell-side pressure than buy-side pressure in the market.
Since the beginning of April 2023, the crypto market has had a net sell-side regime. This is a distinct break from the significant buy-side pressure in Q1 2023.
Year-over-year BTC supply change based on geographical regions has shown a similar divergence to stablecoin supply. This chart demonstrates
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