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11 Oct 2021
Bitcoin skyrockets while other assets struggle
Has bitcoin started its decoupling from the broad financial market?
After underperforming against altcoins for several months, bitcoin has finally turned the table, ending the week up 16%. This bitcoin bull run comes after rising expectations for a bitcoin ETF backed by CME futures, shown by rising open interest (slide 10), increasing funding rates (slide 15), and growing basis premiums for CME futures (slide 13). While bitcoin flourishes, the other large altcoins struggle. ETH ends the week nearly flat at 3%, while ADA has not performed well over the last week, trading down 4%. Source: CoinGecko, messari.ioAlthough the most significant altcoins struggle, a few of them beat bitcoin last week. With its 134% increase, Shiba Inu is the biggest gainer of the top 50 coins, while Fantom has continued its fantastic performance lately, ending the week at a 54% increase (slide 16). During last week bitcoin’s 90-day correlation with ETH, gold, and S&P 500 have all decreased. After a strong start of the week, S&P500’s started falling, while bitcoin continued upwards during the same period, suggesting that bitcoin has decoupled from the broad financial markets.Source: CoinMetrics