Market Recap — Jan 18-19, 2022
BTC continues to chop around but the recent action still looks good for a bounce off Monday’s low after trading on both sides of the level for the last few days.
BTC is still the safe bet against other L1’s during times of uncertainty, with ALGO recovering but still down over 6% after a sell off at the open tonight.
None of the above should really be surprising though. Since institutional involvement has increased dramatically over the last year, so has the correlation between BTC and stocks, particularly the Nasdaq. Of course, equities have been in the crosshairs for a few weeks as well as talk of rate hikes and a hawkish Fed have led to fears of a market correction. However, there seems to be a bit of a disconnect in the rates markets (which are driving equities) since Fed Funds futures are now predicting about a 73% chance that the Fed raises rates four times in 2022 against their guidance of three hikes.
Lastly, QCP Market update is always worth reading, and it’s out today: