Let’s Ride!

Altcoins Take Off

Preface

We’ve got a light economic week ahead, so kick back and relax!

Here’s the highlights of the week and what we learned:

  • Bitcoin hits $30,000 for the first time since June 2022
  • Arizona Governor Katie Hobbs blocks bill that would remove taxes on Bitcoin mining
  • Elon Musk creates an OpenAI ChatGPT rival called X․AI Corp
  • Presidential Candidate Robert F. Kennedy Jr. Says Bitcoin is an Escape Route For When The “Bubble Invariably Bursts” and opposes a CBDC
  • MicroStrategy’s massive $4.17 billion Bitcoin investment has turned positive as price eclipses $30,000
  • Mortgage Bankers Association reported that banks & mortgage companies lost an average of $301 for every loan originated in 2022 vs. an average profit of $2,339 per loan the year before
  • Kevin O’Leary announces plans to build a $14 billion oil refinery to reignite America’s energy independence
  • Bankrupt crypto exchange FTX has recovered $7.3 billion in assets and is apparently considering a relaunch this year
  • Montana passes a bill to protect Bitcoin and crypto mining
  • Ethereum Shanghai Update goes live and price quickly breaks through $2000
  • Twitter has partnered with eToro to allow users to browse charts for a wide variety of financial instruments and purchase or sell crypto and other assets
  • Amazon Joins AI Arms Race by launching its own ChatGPT rival called Bedrock
  • Fed economists project a mild recession starting later in 2023, despite Treasury Secretary Yellen’s claim that the US economy is performing exceptionally well

Altcoins Surge

With Bitcoin dominating the money flows, altcoins have been lagging behind. However, they are finally starting to show some life. This week, WOO Networks has surged over 60%, while Injective and Arbitrum are each up more than 40%. But will it continue? Let’s look at a couple of charts.

Bitcoin dominance has ticked the top of its weekly range near 49%. With the weekly candle nearly closed, it’s looking like a strong bearish rejection. That’s great news for altcoin enthusiasts.

Additionally, Total2 which measures overall market cap excluding BTC, has broken above the key $620B level. It’s easy to see the upside potential is enormous.

Finally, Ethereum is entering a period of seasonal strength between mid-April and early June. The earliest years of this data collection have skewed the averages to the upside, so keep that in mind. 2021 and 2022 saw ETH decline considerably during this window.

Economic Calendar

The main event this week is Manufacturing and Services PMI, and we’ll get preliminary readings for April. There’s been an expansion in the composite PMI since the start of 2023, but the manufacturing component remains in contraction. A print above 50 would signal that manufacturing is once again expanding, which would make an argument for a soft landing.

Jay Charles

Editor in Chief, The Trading Tank.

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