The drop in the US dollar today on soft job openings data has led to some wonky market moves, including Ethereum. The Nasdaq and broad stock indexes are down around 0.7% but crypto and gold are surging.

Leading the pack is ethereum, which is up nearly 5% to the highest levels since August 2022 in something of a breakout.

Ethereum Rises in Latest Session

Crypto was a great asset in Q1 and that's continued as the calendar turns into Q2 but it's largely been carried by bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term, which is now 45% of the market cap of the cryptosphere.

What's most interesting to me today is the divergence between stocks and crypto. They had been in lockstep for months but diverged on the bank troubles in the US and that has continued even with the banking worries ebbing. Still, damage may have been done and it could offer lasting momentum for crypto.

Alternatively, the correlation signals could simply be skewed by quarter-end flows and that crypto is simply leading US equities, which will start to rally soon. I'm sypathetic to that idea because softening recent data means the Fed is close to the end of the rate hikking cycle. The market is pricing in a 50/50 chance of a hike in May and nothing beyond that.

Finally, none of this can be separated from the nonsense going on in Dogecoin as Elon Musk replaces the twitter logo with a Shiba Inu. Let's hope that's not genesis of this rally.