Midday Market Minute: Why is BTC Trading Higher?

Midday Market Minute Midday Metals Minute

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BTC is the big outperformer today, followed by the Russell 2000, and the Nasdaq 100. 63 billion was auctioned in 2 year notes today (the largest ever) and New Home Sales for January are weaker than estimates. 

Transcript:

Chris Chavez

“Good afternoon traders. It’s Chris Chavez with blue line futures and it’s your daily, midday market minute. We have Bitcoin outperforming here today, followed by the Russell and the NASDAQ. But before we get to it, if you’re watching this video, like and subscribe, if you’re on our website, there’s a link to direct you to YouTube, and you can subscribe that way. We’d love for you to follow us, we would love for you to help us build our following. Yeah, so Bitcoin, the big outperformer here today really breaking out? You know, following Bitcoin and look in the equity landscape, or, you know, the equity. You know, I guess you could say, basket, we have the Russell 2000. You know, it’s trading higher here today, the NASDAQ as well, the two big outperformers MicroStrategy, a big constituent inside of the Russell 2000. up sharply here today. Definitely. point that is lifting the index. So I guess the big question, especially with yields, you know, being in positive territory here today are yields at least slightly higher, is why would Bitcoin be trading higher? I mean, it’s still a risk asset, definitely sense sensitive to interest rates, and the landscape. And financial conditions seem to still be pretty restrictive, especially with these elevated levels in yields. But this is really, I think, why when you look at some of these ETFs, I’m show a picture here of a chart, specifically ETF flows over the last month, you have just continued to see consecutive flows into these ETFs. And these managers of these funds have to go out and buy more crypto so that they can, you know, further support, you know, the the inflows of capital into the Fund and, you know, reflect the pricing. So, the ETFs are definitely adding more demand to the crypto landscape. And as you see here, flows are definitely one of the big reasons why you’ve continued to see crypto prices trade higher. So, you know, when looking at some of the other markets today, you know, like the NASDAQ and the Russell 2000. Again, the big reason you’re seeing the Russell hires MicroStrategy. But when looking at the NASDAQ, really it’s continued to be led by Nvidia, you know, tech overall, that has been the theme, especially this year. And as yields have gone higher, the NASDAQ and these companies have still continued to deliver. So that’s, you know, you’re kind of seeing that carry through happened here today. We did get some data this morning building permits came in slightly above estimates, and New Home Sales came in actually below for the month of January 631,000, or 661,000. Excuse me versus 680. Expected, we did get a two year note auction today 63 billion in Treasury issuance, that is the largest ever for a two year note auction, it went relatively decent, you didn’t see, you know, a huge move in yields. After the auction, we will get another five year note auction at 1pm Central Standard Time definitely important to pay attention to when looking at the CME FedWatch tool. Today, there’s about a 60% probability of a cut in June, followed by an 80% probability in July. And when looking at the front and December fed fund futures, it’s actually pricing in about 73 basis points worth of cuts right now. So that you know compares to 150 to 160 at the beginning of the year. And you can see how these up you know, interest rate cut expectations have really shifted quite a bit as data has been better. So more data coming out tomorrow consumer confidence Case Shiller and durable goods. And when looking at some of the support and resistance levels that we highlighted in our research, be sure to sign up for a free a free two week trial on blank futures.com a three star support level for the s&p 5076 and three quarters, a three start resistance level for the NASDAQ as it’s outperforming here today 18 109 to 18 140. For crude oil, a four star resistance level we need a break above 7861 and 7872 Break and close above there and we can be off to about $79 Maybe retest 79 and a half or so. Silver three star resistance is going to be 22 or three star support rather 2243 to 2251. If we break and close below there we can see a little bit more liquidation before we read test 2205 If you have any questions reach out to our trade desk we’re here for you remember futures trading involves substantial risk of loss and is not suitable for all investors.”


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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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