From the desk of Louis Sykes @haumicharts and Steve Strazza @sstrazza

The Crypto space just experienced its worst day since the height of the Covid crash.

Bitcoin was down over 30% on an intraday basis, while Ethereum was almost cut in half.

We see this recent action aligning Crypto with what’s taking place throughout the market. Bulls have had a more challenging time in recent months, and risk assets are coming under increasing pressure. 

Speaking to this topic, here’s what we outlined in a note earlier this week:

One more chart that I think is interesting is the Bitcoin / Gold ratio hitting it’s upside objective and reversing hard.

How many people are telling you to sell Bitcoin to buy Gold?

I don’t hear any at all….

If we’re below 36:1 in the ratio between Bitcoin and Gold, then we prefer Gold.

Of course, we had no idea a 30% crash was on the horizon… The conditions simply warranted owning defensive assets like Gold over Bitcoin. And this is something we’ve been seeing across asset classes all over the globe.

Long story short, the writing was on the wall – and after such a great run, it’s only normal to see some corrective action.

[Read more…]