While the stock market has seen surprising upside in the past weeks (assumedly due to pricing in rate cuts / a more positive liquidity picture / high expectations for Q2), crypto has lagged behind. I don’t believe anything above current prices – no matter in which market – is sustainable on a longer timeframe, but we can certainly milk it for whatever it’s worth.
Notably, BTC has shown way more resilience and dominance in the current cycle so far. This makes sense in a high interest environment. However, within the bias of the markets pricing in high expectations for more liquidity, we could also assume that demand for assets other than “save havens” would now increase as well, leading us to the biased conclusion that we could see altcoins wildly outperforming BTC over the next 1-2 weeks.
Indeed, if we look at the BTC chart, technicals such as VWAP stddevs show significantly less potential for upside if compared to ETH in the current moment in time. We therefore would focus on ETH (as money flow seems to cycle BTC->ETH->Others).
