A Brutal Week For Markets!
But a STRONG Recovery.
After a punishing couple of weeks in the markets, let’s start with something positive.
Over the past 24 hours, Crypto & the broader Stock Market have just added a staggering $1.5 TRILLION in market cap.
Whether momentum continues or not remains to be seen, but sentiment among larger investors seems to be improving.
Next weeks price action will likely be key for what happens in the coming months.
Now, into the nitty gritty.
At the start of the week we saw Gold & Silver lose a whopping $4T in market cap, signalling enormous profit taking & potentially gearing up to allocate funds to assets that are far more undervalued.
The term ‘Rotation’ gets thrown around an awful lot in the Cryptosphere, but usually for good reason.
Historically, when metals put in a local top we usually see a bottom begin to form in more speculative risk assets such as Bitcoin.
When this happens, the rest of the Crypto market usually gets dragged up with it
The Institute of Supply Management Survey (ISM) SOARED from 47.9 to 52.6, shattering forecasts of just 48.5.
What does this mean for us?
Above 50, signals economic expansion, which has previously seen Crypto rise dramatically.
We all know there is a strong argument between the ‘4 Year Cycle’ believers & those who lean more aggressively into the business cycle - In the coming weeks / months, we will find out who was right.
One big player who has maintained their bullish stance during this draw down is Cathie Wood of ‘Ark Invest’.
Loading up aggressively on Crypto stocks: HOOD 0.00%↑ , COIN 0.00%↑ , CRCL 0.00%↑ , BMNR 0.00%↑ , & BLSH 0.00%↑
Even adding to their own Bitcoin ETF!
But with all of this good news, make no mistake, some of the prominent whales are currently holding monumental drawdowns. Namely Michael Saylor & Tom Lee.
Strategy sitting on a -$4.5B unrealised loss on 713,502 $BTC
Bitmine holding roughly a -$7.5B unrealised loss on 4.2M $ETH
With speculators worried about potential liquidations, Strategy CEO stated this week that Bitcoin could go to $8,000 and sit there for 5 years, before they have a problem.
And Tom Lee let everyone know on X, Bitmines exact holdings & returns they are generating from staking, cash yields and highlighting they hold zero debt.
A strong position in our books!
We will finish with this piece of data from Bitwise, while the noise surrounding markets is often deafening & it becomes increasingly difficult to know what to believe, big money that is PRO Crypto, continue to buy the fear.
Below is a chart showing the correlation between this current dip & how aggressively Crypto Hedge funds are stepping in to buy.
That’s it from us this week, be sure to follow us on X over @Crypto_Crib_ to stay up to date with the latest market moving news.
Until next time!