LitecoinLong
LTC Long @ 176.57
Yesterday's inaugural post flagged a bullish valuation signal on Litecoin (spot ref 176.57). Some additional colour.
RETINA™ provides machine generated signals based on macro factors. Yes, any asset - especially crypto - can be driven by a host of things. Regulatory risk is clearly a very real threat.
But ultimately, financial assets reflect their macro environment - where we are in the growth cycle, is inflation rising / falling, are financial conditions easing or tightening, where is risk appetite etc? Quant Insight's algorithms capture all these & distil it all down into a macro-warranted fair model value. The difference between spot price & fair value = a Fair Value Gap. Essentially a way to track dislocations in markets between the price of crypto, FX, cmdties etc & their fundamental environment.
RETINA™ then pushes these signals out.
Litecoin's macro fair value is currently 236.
The biggest driver is global inflation expectations. Higher global bond yields & steeper yield curves are also consistent with higher XLCUSD.
A "risk on" environment also helps. Note that includes events in China. China stress features as a top driver via sovereign CDS spreads. One word of caution therefore to LTC longs - if the Ever Grande story bleeds into the banking sector & beyond, that's bad news & a risk scenario that requires careful monitoring.
All-in-all, Litecoin wants a reflationary, risk on backdrop & offers a useful inflation hedge.
RETINA™ provides machine generated signals based on macro factors. Yes, any asset - especially crypto - can be driven by a host of things. Regulatory risk is clearly a very real threat.
But ultimately, financial assets reflect their macro environment - where we are in the growth cycle, is inflation rising / falling, are financial conditions easing or tightening, where is risk appetite etc? Quant Insight's algorithms capture all these & distil it all down into a macro-warranted fair model value. The difference between spot price & fair value = a Fair Value Gap. Essentially a way to track dislocations in markets between the price of crypto, FX, cmdties etc & their fundamental environment.
RETINA™ then pushes these signals out.
Litecoin's macro fair value is currently 236.
The biggest driver is global inflation expectations. Higher global bond yields & steeper yield curves are also consistent with higher XLCUSD.
A "risk on" environment also helps. Note that includes events in China. China stress features as a top driver via sovereign CDS spreads. One word of caution therefore to LTC longs - if the Ever Grande story bleeds into the banking sector & beyond, that's bad news & a risk scenario that requires careful monitoring.
All-in-all, Litecoin wants a reflationary, risk on backdrop & offers a useful inflation hedge.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.