Good morning,
Welcome to your daily crypto clarity
WHAT YOU NEED TO KNOW
Bitcoin continues to rally higher, hitting 50,000 for the first time since March 2022.
New York expands fraud case against DCG to $3B.
Binance is losing dominance against other crypto venues, with spot volume dominance falling from 60% to 40% throughout 2023. This has been accelerated with CME open interest overtaking Binance in recent months.
FEATURED CHART
Here is Bitcoin dominance YTD; this is calculated by dividing Bitcoin's market capitalization by the total market capitalization of the asset class. As Bitcoin market-cap dominance rises, it suggests that Bitcoin is outperforming most of the asset class.
Following the approval of the Bitcoin spot ETFs, Bitcoin dominance sharply fell but has now quickly recovered as crypto markets have stair-stepped higher. This points to Bitcoin's outperformance relative to smaller market-cap altcoins.
This is normal market conditions, where Bitcoin has a tendency to outperform in the early stages of a rally, then for rotation to take place later into riskier assets.
WHAT TO LOOK OUT FOR
We want to see Bitcoin hold 46,000 on the upside, but should we see mean reversion manifest from this recent move, we’d anticipate the 40,000s to provide support on the downside.
We're closely watching how Bitcoin dominance tracks to see if leadership begins to sprout in other areas.
All eyes are on the US CPI release this morning. Should inflation come in cooler than anticipated, it could prompt the Federal Reserve to cut interest rates, driving down the US dollar which would be a tailwind for crypto assets.
You’re all caught up.
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