February 26 Bitfinex Alpha | BTC and ETH look positive, but swing season has not started yet
In Bitfinex Alpha
The Bitcoin and Ether markets look very positive.
Bitcoin ETF inflows remain strong, even in the week the market shrank last week, with around $600 million in net inflows recorded. Centralized exchanges are also seeing increased demand for Bitcoin, highlighted by the large withdrawal of over 18,000 BTC from Coinbase, which left the exchange with the lowest Bitcoin reserve since 2017. This redistribution of withdrawn Bitcoin to new wallets indicates bullish investor behavior, as we have seen . In both Coinbase Premium Index and Kimchi Premium.
Ethereum also had significant momentum behind it, as it breached the $3,000 mark and prepared for its highest weekly close in 97 weeks. This increase is fueling discussions about the potential start of “altcoin season,” a phase in which altcoins outperform Bitcoin. The Ethereum exchange reserve on all exchanges shows a net outflow of over 800,000 ETH, indicating a strong supply crunch that could push its price further.
Taking history as a guide, the current stability of Bitcoin dominance at just over 51%, could be a harbinger of the beginning of a new altcoin season. However, while there has been an increase in liquidity in the top 20 altcoins, some of this can be attributed to decreased liquidity for those coins outside the top 20.
Such a shift in liquidity dynamics indicates a cautious investor sentiment, with a preference for more established and liquid assets, and that market appetite for less popular tokens has yet to show a significant recovery.
The US economy also looks rosy. The Conference Board announced a more positive outlook, marking a major reversal from its previous warnings about an impending recession. The resilience of the US economy, demonstrated by continued growth in output, employment and consumer spending, supports its confidence, indicating that the economy is strong enough to withstand any economic fluctuations.
Fed Vice Chairman Philip Jefferson also reiterated that the Fed's intention is to lower interest rates this year, but continued to monitor strong consumer spending, which, although it prevented a recession, could also lead to higher inflation. .
Recent new data underscores the optimism, with initial jobless claims falling significantly to a five-week low, and the S&P global PMI for February showing only a slight slowdown, as business activities continue to expand. This continued resilience in the manufacturing and business sectors complements the broader economic outlook.
In cryptocurrency news, Reddit announced plans for an IPO, thereby revealing its investments in Bitcoin and Ether and its acceptance of cryptocurrencies in virtual goods transactions. Meanwhile, the Law Commission of England and Wales is consulting on a draft law to recognize cryptocurrencies and non-fungible tokens as property, and address legal challenges in the field of digital assets. Additionally, CME Group announced plans to launch micro-futures contracts for Bitcoin and Ethereum in euros next month, expanding access to cryptocurrency markets following the success of similar US dollar-denominated futures contracts.
Have a great trading week!
