Dollar Drop, Crypto Pop Reflects “Crazy People” Running The System

Dollar Drop, Crypto Pop Reflects “Crazy People” Running The System

The last few months have seen the dollar dive and crypto thrive…

Source: Bloomberg

And the last few days have been no different…

Source: Bloomberg

With bitcoin helped overnight by the Koreans (the Kimchi premium tagged zero then soared)…

Joe Lonsdale, Palantir co-founder explained succinctly why crypto is performing so well (and perhaps why the dollar is not so much)…

“Bitcoin is a bet against a centralized financial system run by crazy people… it is a bet that the emperor has no clothes.”

Echoing Kyle Bass’ infamous comments about gold from a decade ago…

“Buying gold is just buying a put against the idiocy of the political cycle. It’s That Simple”

For now, it seems the market has a preference for one over the other (or one is being suppressed, take your pick)…

Source: Bloomberg

Although the last week or two have seen that swing back the other way a little…

Source: Bloomberg

Away from that malarkey, Small Caps outperformed Big-Tech for the 4th straight day as all major US indices but the Dow managed gains today…

At 1530ET, all hell broke loose in stock land with a sudden, massive-volume puke that came out of nowhere…

This was a major sell program…

TSLA (whose earnings are tonight) went just a little bit turbo during that period too (ARKK was up over 3% today)…

DISCA (think Archegos) surged during this broad index puke.

After stopping perfectly at January’s lows, Small Caps have surged higher relative to Mega-Cap DJIA in the last week or two…

Source: Bloomberg

Growth outperformed Value today

Source: Bloomberg

Despite equity gains, Treasuries ended the day practically unchanged…

Source: Bloomberg

10Y Yields remain in a very narrow range…

Source: Bloomberg

Bitcoin wasn’t the only crypto to see a huge rebound. Ether surged from below $2200 to over $2500…

Source: Bloomberg

ETH is hovering near its highs relative to BTC from February…

Source: Bloomberg

After Friday’s clubbing, (and this morning’s smaller slam), gold managed gains on the day…

Oil prices ended lower, despite a wild intraday swing…

Finally, the price of agricultural commodities is literally exploding…

Source: Bloomberg

“Transitory” of course!

And financial conditions have never… ever… been this easy…

Source: Bloomberg

How much longer are you going to enable this Mr.Powell? Perhaps Mr. Lonsdale is right – “crazy people” are running the system.

Tyler Durden
Mon, 04/26/2021 – 16:00

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