A combination of de-leveraging, Bitcoin falling below its 50-day, notable Wall Street firms forecasted a major correction to $20-30k sparking retail fear and the Biden tax plan were all events that took us lower last week.
But market have stabilized and bounced since then.
As FundStrat mentioned in a note two weeks ago, we thought a "crypto market cooling off would be healthy". We've seen the price of Bitcoin retrace a little over ~25%, which would qualify as a major correction for traditional markets but is par for the course in crypto during bull market cycles. While we're not technical traders, Bitcoin falling below its 50 day gives us less concern given this has happened several times during the prior bull market cycle, and it's the 200 day that Bitcoin has historically maintained during prior bull runs.
As FundStrat discussed in their prior week's note, they believe the bull market remains intact, and are maintaining our $100k Bitcoin price target.
We think the macro backdrop remains bullish for crypto assets. The Fed's recent guidance that it plans to remain accommodative should be supportive for risk assets like crypto.