Cryptic ball: week or weak?
It's a pity that cryptoassets and equities are losing their strong correlation in such a way. While the S&P 500 and the Nasdaq kept bouncing into potential recovery territory, bitcoin and ether, as well as most alts, remained lacklustre. Why?
- Firstly, note the average cryptoasset barely moved this Friday. Bitcoin hovered between $28k and $29k while ether also fell a bit, being mostly stuck between $1.7k and $1.8k. Only DOGE followed equities, experiencing a minor uprise.
- Conversely, EU and US stocks closed the week in the green, in what can be called "the best week since November 2020". This was the relief rally I told you about Monday, but I was expecting it to play out across the board!
- Instead, cryptoassets weren't baffled by these nice winds that were even able to lift overhyped software companies in the Web2 world. My explanation concerns the lack of demand from retail and institutions alike.
- After all, some OTC desks have been reporting lighter institutional flows this week, with just some smaller firms trading the current range. On the other hand, it's also clear retail isn't interested in buying crypto right now.
As Alex Krüger and Chris Burniske put it, the crypto sentiment was harmed by the Luna crash and one can only agree and wait for traders to complete capitulation. Let's see how Monday opens and if May's monthly close brings further negativity!
Chart art: liquidity or litquidity?
Three things: PoW or PoS?
- Namcios explains "why doesn’t Bitcoin move from PoW to PoS".
- Evan Armstrong explains "the addiction economy".
- UniWhales DAO explains "the red flags to keep in mind when evaluating crypto projects".