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.
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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.
We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
To make the cut for our Minor Leaguers list now, a company must have a market cap between $1 and $4B.
We held our February Monthly Strategy Session last week. ASC Premium Members can click here to watch the replay and download the chartbook.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends.
This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
Healthcare continues to lead to the upside. While we already have a bullish bet on a sector ETF, it's time for us to drill in a little deeper in search of more beta if this trend is going to continue.
Today's trade is in a name that has been performing great off its December lows and has also been in a longer-term bull market. But only just recently has it begun to outperform against the broader stock market.
Bitcoin has erased its post-ETF losses, with prices hitting 48,000.
The greatest percentage of cryptocurrencies made new highs since the short-term market top in December last year.
Bitcoin spot ETFs have surpassed 200,000 BTC in AUM within their first month of trading.
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Here is a daily price chart of Bitcoin making 52-week closing highs. A number of data points pointed to a reset in the consensus bullish positioning and sentiment that had become dominant over the recent months. Now, it appears the 40,000s have become a new floor in this bull market.
In last week’s letter, we argued that a once-crowded bullish sentiment had cooled down in a bull market reset. We also put forward the case that crypto markets were at an inflection point between capitulation or reacceleration. Over the last week, we’ve seen Bitcoin sharply rally to the high 40,000s, indicating that this period of consolidation is ending with an upward resolution.
