The Ethereum confirmation last week that the long-expecting migration to Ethereum 2.0 will occur in mid-September, triggered a nice run for ETH as well as for other layers 1 and layer 2 chains. This move is also reflected in the Bitcoin dominance chart which is a measure of how much of the crypto market cap is composed of Bitcoin vs. other coins. Bitcoin dominance has weakened in the last few days and is down to 42%. (on June 12th during the 2d big crash – it was as high as 48.5%). The Fear & Greed index is recovering as well and is up to 30 ( at its highest in 2.5 months.
We are also monitoring the DXY which is a measure of the value of the U.S. dollar against six other foreign currencies. The dollar has shown real strength in the last months and was highly correlated with weak risk-on assets such as Bitcoin and tech stocks. The dollar is now facing resistance and we expect a reversal once the ECB decides to raise interest rates later this week. As soon as the Euro and other major currencies shows more strength, a positive momentum for risk-on assets may take place.
So there is a sense of relief in the markets, while not much has changed in the macro-economic conditions. We remain cautious and as always monitor the crypto as well as the economics indicators market carefully.
Diamond Pigs strategies are showing a strong positive trend with Berkshire (our passive index strategy) leading the trend with a 25.3% increase in the last 30 days. It is worth mentioning that Berkshire has suffered the most during the 2 big crypto crashes in May and June and it has still a lot of catch up to recover from its heavy losses in the last months.
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