CRYPTO MOVERS AND PRICES
Crypto is broadly higher this morning though well within the established multi-week trading band. Bitcoin SV (BSV) is the top-performing crypto in the Top 10, +12% in the last 24-hours.
CRYPTO STORY OF THE DAY
Bloomberg Released Another Bullish Piece On Crypto – This Time Focusing On Comparisons With Gold Trading Dynamics To Underscore Their Positive Viewpoint
- In what is being described as their, ‘Mid Year Edition,’ Bloomberg Senior Commodity Strategist Mike McGlone reiterated the bullish view on the sector and Bitcoin (BTC) in particular. The last report published by the group was in early June where one of the subheadings was titled, ‘History Indicates Bitcoin Towards 20,000 In 2020.’ While the first piece showcased a grab-bag of reasons for the team’s bullishness, the latest keys in more on perceived similarities in current trading dynamics with gold. The paper points out some proprietary Bloomberg ‘demand’ indicators which are posting similar readings and note that gold and Bitcoin have shown little signs of correlation to the broad market over the last few months. The piece also realigns the technical focus to a breakout above USD 13,000.
Takeaway: As was the case with the last piece we do not agree with everything outlined in the report. There are sections, such as a reduction in the GBTC NAV premium, that we think are more nuanced dynamics and are out of scope for a bullish narrative. Some of the main undertones, however, such as how low volatility periods have recently preceded rallies, are points that we have also highlighted and found difficult to ignore. Bloomberg has been one of the first established institutional finance brands (along with Fidelity and a few others) that have staked some reputational risk on a bullish crypto call.
CHART OF THE DAY
BTC Bollinger Bands – The latest Bloomberg report pointing out that Bollinger Bands on BTC are the tightest they have ever been…