Is BTC is showing a little weakness?
Tuesday 11/10 9am
So far this morning we are seeing a continuation of the covid unwind trade, with long time winning tech stocks taking a hit and beaten up small caps and energy feeling some relief. BTC is showing a little weakness, but still not very much. Throughout yesterday and so far this morning, BTC has shown more resiliency than I expected, finding plenty of support right below $15,000.
As the unwind/rotation trade plays out, I would expect that portfolios holding BTC as part of that trade (those who bought gold and BTC and growth stocks as a trade based on fed intervention and forecasted low interest rates for the foreseeable future) to continue to unwind some of those trades. This should manifest as a sort of taking the foot off the gas for BTC. The fact that it has remained supported even during the reasonably violent Nasdaq vs Russel rotation is something I interpret as confirmation that the strong undercurrent of increased money flows into BTC that started a few months ago remains.CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.