As the dollar weakens further, will risk assets hit all-time highs?
Crypto News

J-Pow Approves Santa Rally


The News From Planet Ruby—Friday, December 1, 2023

  • Signal: BTC, Gold
  • Noise: USD

Good Bye, Charlie Munger

The dollar heads lower, as fears of further interest rate rises in response to high inflation recede into the background. Risk assets continue to climb, with the S&P500 pushing against resistance and targeting its ATH. Gold rose above $2,040, also eyeing its ATH around $2,080, as the traditional "Santa Rally" gains pace.

Impressively, even as the markets push higher, the amount of cash parked in money market funds—which can be considered as "sitting on the sidelines"—has also reached an all-time high.

Charlie Munger, Warren Buffett's right-hand man at Berkshire Hathaway, has died at the age of 99. Together with Buffett, he helped build the fund into a $785 billion powerhouse, and a byword for investing success. Unpopular in the crypto world for his uninformed and outspoken tirades against Bitcoin, Munger was nonetheless a legend of the investment space who new the value of finding underpriced assets and HODLing.

Crypto Grinds Higher

Bitcoin made new local highs this week, picking back up above $38,000. While BTC is well above 70 on the weekly RSI, it can remain in "overbought" territory for months, if previous bull runs are anything to go by.

BTC-USD (TradingView)
Bitcoin is pushing local highs

Bitcoin Dominance is slightly up, at 53%, following a pullback below 52% two weeks ago, as renewed optimism drives prices further and faster than for the alts market. Alts are still gaining in fiat terms, though, as the total crypto market cap bumps up against $1.4 trillion, chopping around and consolidating after its rapid rise.

Coinbase In The Spotlight

Institutional inflows into digital asset products have soared to levels not seen since the height of the 2021 bull run. According to CoinShares, inflows hit $354 million last week, with bitcoin products accounting for $300 million. Interestingly, the US only contributed a small fraction of that, indicating a lack of products to meet demand amid regulatory uncertainty. Microstrategy is one obvious exception, thanks to Michael Saylor's addiction to buying bitcoin.

Standard Chartered has reaffirmed its forecast that bitcoin will hit $100,000 bitcoin by the end of 2024. Meanwhile, Franklin is the latest ETF provider to update its application, just after the SEC announced they were delaying their decision far earlier than expected.

A Delaware bankruptcy court has approved the sale of almost $900 million in assets owned by FTX, to repay creditors who lost money following its collapse in 2022.

Finally, Coinbase is enjoying a bullish week, as its share price recovers to an 18-month high. Nonetheless, there's speculation it could still be severely undervalued, should the exchange successfully carve out a monopoly in the ETF custodian business, which could add billions of dollars to its annual revenues.

What's New In The SKALEVERSE?

If you haven't already joined the discussion around SKALE Chain pricing, make sure you take a look on the forum. This is a key development that will place the network on a sustainable and long-term footing.

That's all for this week!

Follow Ruby on Twitter, join us on Discord, and subscribe to the Ruby blog for regular updates.