Is BTC 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.
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