Crypto is sharply higher as U.S. yields and the dollar fell after Treasury announced larger bond buybacks, improving liquidity and risk sentiment. At the same time, Trump met with crypto executives and SEC/CFTC leaders at the White House and pushed for the CLARITY Act, boosting hopes for crypto-friendly regulation; the rally then triggered a massive short squeeze, with over $1 billion in shorts liquidated.
Looking at the total crypto market cap, there was a strong push above 2.23 trillion, from where we can see a very nice extended leg. It’s currently moving even into the 261.8% extension of wave one measured from wave two, so it’s a pretty strong and extended leg where we could possibly see some slowdown in the near future. Nonetheless, after any kind of a pullback, we will obviously expect more gains after a potential fourth wave, and then later on we should focus on more upside, either into the late stages of a higher-degree wave three or even wave C, with room closer to the 2.40–2.48 trillion area.
GH
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