$BTC 24 Hour High $58,930
$BTC 24 Hour Low $56,640
$BTC -0.7% past 24 hours; +2.6% past 7 days
Crypto vs. USD correlation looks to turn
Good morning. $BTC again attempted to break higher but ultimately failed to break the downward-trending resistance and thus retraced to where it was around 24 hours ago. 56.5K started to act as the short-term support level. If this breaks, $BTC is likely to revisit the 54.5K area. However, the current price consolidation could build a good base for $BTC’s next leg up.
The current correlation of $BTC to $USD is at -0.75 and is nearing the lower end of the historic levels. Simply put, a stronger USD tends to positively impact $BTC if we look at the historical trends of the USD Index (DXY). As the correlation trends into the less negative territory, it will be instrumental in driving $BTC upwards for a year-end rally.
$ETH moved lower intraday after testing $4,500, the local top from November 26, despite facing resistance on the top of the 2021 trading channel. Like $BTC, $ETH’s correlation to DXY is also negative (-0.64), a historical point that signals a turnaround. As the correlation starts skewing towards the positive area, $ETH should find stronger support in its price. Conversely, if we fail to hold at this level, $4,440 appears to be the next support area. This is an area that one could start thinking about adding long positions, given $ETH’s relative strength and reversal indications.
Crypto venture capital firm Hashed launched a new $200M fund called “The Hashed Venture Fund II”. Primary investing in Web3 startups, which will focus on DeFi, NFTs, metaverse & blockchain gaming, the Korean-based firm is highly optimistic about Web3’s potential to achieve and discover new kinds of governance and restore trust. The firm raised $120M a year before for Fund I and invested in dYdX, Mythical Games, Republic, Chai and NFTBank. The new fund expects to deploy its capital fully within the next two years.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $2.77T, -0.3% from yesterday
- $BTC is +0.23% at time of writing; 24H liquidations and funding rates: $65.85M, +0.01222% average
- $ETH is -1.24% at time of writing; 24H liquidations and funding rates: $52.37M, +0.00880% average
- Stablecoins Market Dominance: USDT 48.83%; USDC 25.31%; BUSD 8.81%; DAI 5.79%
Alts and DeFi watch:
- DeFi TVL: $109.02B
- $SOL +9.1% in the last 24 hours, +3.2% in the past week
- $SHIB -9.8% in the last 24 hours, +6.2% in the past week
- $SAND -5.3% in the last 24 hours, +22.2% in the past week
- $ENJ -3.0% in the last 24 hours, -8.5% in the past week
More news that caught our eye:
- OSL hires Merrill/RBS veteran Jeffery Howard as head of North America business development & institutional sales
- Grayscale writes a letter to the SEC, accuses the regulator of violating the law
- Crypto CEOs will testify before U.S. House Panel
- Polygon’s expanding ecosystem backs $MATIC’s rise toward a new ATH
- Why investors are paying millions for virtual land in the Metaverse
- Facebook (Meta) removes its ban of crypto Ads
OSL Trader View is contributed by Stefan von Haenisch & Ethan Fu.
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