Bitcoin Gains Ground as Stocks and Bonds Decline, Gold Reaches Record High
Global markets are experiencing significant turbulence, challenging traditional investment portfolios. The classic 60/40 stock-bond allocation is under pressure due to rising Treasury yields and falling bond prices, with the iShares 20+ Year Treasury Bond ETF (TLT) down approximately 50% from its 2020 highs. U.S. equities are also struggling, influenced by geopolitical tensions and inflation.
Alternative assets are gaining traction:
- Gold has reached $3,500 per ounce, adding $6 trillion in market cap this year.
- Bitcoin is showing resilience, increasing its dominance in the crypto market and diverging from U.S. tech stocks.
This week, $6.7 billion in bitcoin options are set to expire, creating potential volatility ahead.
What to Watch
- Crypto Events:
- April 22: Lyora upgrade on Injective mainnet.
- April 25: SEC Crypto Task Force Roundtable on custody considerations.
- April 28: Enjin Relaychain to increase active validator slots.
- April 30: XRP ETF expected to begin trading on NYSE Arca.
- Macro Data Releases:
- April 22: Canada’s producer price inflation data.
- April 23: Mexico’s retail sales data.
- April 23: U.S. purchasing managers’ index (PMI) data.
- Earnings Reports:
- April 22: Tesla.
- April 30: Robinhood Markets.
- May 1: Block.
Market Movements
- BTC is up 1.45% at $88,539.04.
- ETH is up 3.43% at $1,628.60.
- CoinDesk 20 index is up 1.49% at 2,544.64.
Bitcoin Stats
- BTC Dominance: 64.39%
- Hashrate: 840 EH/s
- Total Fees: 6.56 BTC / $572,645
Derivatives Positioning
- BTC open interest increased to 695K BTC, highest since March 25.
- Perpetual funding rates for major tokens remain positive.
Recent events include a surge in trading volume for LUCE, a memecoin related to the Vatican, following Pope Francis' death. Additionally, bearish sentiment towards the dollar is evident as investors shift capital to alternatives like bitcoin and gold amidst macroeconomic uncertainties.