Bitcoin is sending good signals for the risk trade this risk trade this week. It's shot to a high of $21,427 from $19,500 when traditional markets shut down on Friday.
We've just had a fresh push but it again stalled out ahead of the November high of $21,471 for the third time.
It's no surprise to see heavily-technical trading in bitcoin with little else to use to value it.
In the bigger picture it speaks to how enthusiasm for risk assets has amped up in the new year. All it took was the slightest indication that inflation will fall back to target and that the Fed is finished hiking. That kind of reaction highlights the amount of cash on the sidelines and relentless enthusiasm for bottom fishing. It also highlights some resilience in the crypto space despite a run of awful news.
What remains to be seen is whether monetary policymakers push back at the enthusiasm from markets. That could start on Wednesday with the BOJ backing off its unlimited QE program.
