Occasionally close correlations break down, but if the reasoning for that break is anomalous, they re-establish themselves. We look at how gold and bitcoin have been behaving and assert that the recent misalignment is temporary. Technically, there is little to shout about for bitcoin, although the 365-day moving average looks like an increasingly firm base for an asset that has had the froth well and truly extracted. The market is well-poised for a recovery.
Better news from the on-chain data, where activity continues to recover. Not that you’d be very comforted by that as an ETH holder. It has halved relative to BTC in just two years. Adoption will be helped by clearer legislation. In the UK, draft legislation clarifies crypto’s legal status.
The success of crypto will in part be driven by its ability to integrate with, and subsequently improve on, traditional business models. We highlight the success being enjoyed by Maple Finance, Velo and Super, all of which are carving a niche in their separate areas.
- Technical Support on the 365 moving average, ETH halves relative to BTC in two years
- On-Chain Pick up in value transacted, higher velocity and fair value
- Macro Gold vs bitcoin price anomaly, the value of hard assets
- Cryptoverse Maple Finance, Velo and SuperVerse
