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The Crypto Weekly Lookout: April 4th, 2022 edition



Overview


Last week, markets couldn’t stop talking about the yield curve inversion and what it signals for Fed policy. Will the Fed be able to engineer a “soft landing” of the economy or will the monetary tightening lead to a new recession? As we mentioned in this past Friday’s Crypto Weekend Watch, “even if no recession ends up occurring, the truth is the direction always matters more than the destination.”


That being said, equities and crypto have been on a roll since mid March. And April has history on its side - it is normally the best performing month for the S&P 500 and has historically been the second best performing month for Bitcoin. Even if crypto doesn’t decouple from equities this month, there’s a strong case for gains to be made by April 30th.


Crypto


Altcoins have been all the rage in the short-term while Bitcoin couldn’t keep up the pace and stay above $48K. Nevertheless, helping its bullish case is the news that overall BTC stocks on exchanges are now at their lowest point since August 2018 according to CryptoQuant. Lower floating supply never hurts.