Dear subscribers,
In this version of Uncharted: Distilled we analyze bitcoin’s rally in the context of better-than-expected macroeconomic data and renewed sentiment. Altcoins extended their dominance in the market as momentum picked up.
Let’s dig in!
Summary
Uncharted #21 starts by analyzing the better-than-expected CPI report and the direction of the crypto market. Swissblock’s proprietary signals indicated a strong altcoin season in a lower-risk environment.
Risk-on assets rallied following an optimistic CPI report that should encourage a more lenient Fed in the September FOMC meeting.
Inflationary pressures subsided due to topping energy commodity prices and slowing core services.
We are not out of the woods just yet. Global supply shocks can reignite inflationary pressures.
Bitcoin broke above the $24k resistance level as the risk of a pronounced drop eased.
Demand remained relatively low, with on-chain volume decreasing -by 41% in July.
In light of a subsiding risk and more clarity on the Ethereum merge, ethereum and altcoins outperformed bitcoin.
External pressures continued to risk bitcoin’s crypto progress as the inverted yield curve edged towards early 1980s levels, hitting a two-decade low.
On the bright side, bitcoin is less sensitive to incoming data released throughout the day and is less exposed to pronounced drops.