BTC Rally Short-lived, ZEC Down On A Tuesday

Bitcoin’s rally has been short-lived, trading down to the $103k level on the day. Broader risk markets are down as well, and bitcoin cannot escape its tango with the Nasdaq 100. BTC has been up to a 70% correlation level to the Nasdaq earlier this year, shifting from the once popular inflation hedge trade made popular by Paul Tudor Jones. Bitcoin can’t fit into a tradfi box, no matter how hard people try. With its unique elements, bitcoin behaves in its own way, and will trade with correlation to gold at times or risk assets. ETF’s saw outflows yesterday, with a net near -$9m. This week is setting up to be choppy, without any real catalysts on the calendar. The US government should be back up and running this week, and we will most likely get NFP early next week for September jobs. This data is rather stale at this point, but could be a catalyst if we see a large negative number.

Z-Cash began November with an absolute bang, trading up to $740 per coin on November 8th. This has been a 20x from the end of August, a massive outperformer in crypto. Unfortunately, this rally has cooled off, and is now down two days in a row. ZEC is trading below $500, which could prove to be an accumulation level and reignite the rally. With minimal market making activity and derivatives, a pure spot rally on a major crypto is remnant of the past. Hyperliquid’s book for ZEC perpetual futures is not insignificant, with over $700m in 24 hour trading volume and over $270m in open interest. Funding remains positive at near 10% annualized. Z-Cash continues to inspire and remind us all of the original cypher punk movement that started this whole thing.