Lately crypto has been trading like a leveraged bet on the Nasdaq. Given the rout in tech stocks, it hasn't been a great trade lately. Both the Nasdaq and bitcoin are down more than 30% this year.
Today though, tech has rebounded. The Nasdaq is up 2.8% and even meme stocks like GME are up big (10.7% now).
You would expect that to mean a good day for crypto but that hasn't been the case. Bitcoin is down $278 to $29,491 and ethereum is down $106 or 5.4%.
If there's a silver lining to the poor performance today, it's that bitcoin has rebounded from an early loss. It briefly ticked below $28,000 in European trade and found some support.
In the bigger picture, the consolidation around $30,000 continues. After the huge move at the start of the month, bitcoin has traded in an unusually narrow range. The trade will ultimately be to go with a break.
Despite today's disappointing price action, I lean towards a bounce because of the dip buying today, but it's tough to believe that with any kind of conviction.
Ethereum is an interesting place to watch. It also rebounded today but the close is likely to be the worst since July 2021.
