TL; DR
Full story
Okay, time for some “canary in the coal mine” data.
If you don’t know what that is, it’s because we just made it up… kind of.
(If nothing else, we gave it a name).
This is what it means:
Suppose you want to predict whether house prices will remain stable, rise or fall. You could look at the number of homes sold recently, but past and present performance don’t necessarily indicate future results.
So you might instead look for data on the ‘canary in the coal mine’.
Such as: how many home loans were closed in the past quarter (which indicates the buyer’s intention).
This is like the crypto version of that.
Crypto lending company Ledn processed more than $690 million in loans in the first quarter, which was almost five times the value of the previous three months.
(Making this the company’s most successful quarter to date).
And okay, okay – buying crypto is much faster than buying a house – meaning most of this capital has probably already been pumped into the market…
But here’s why this data is still super relevant:
Ledn says the vast majority of these loans have been made to institutional customers.
You know those crazy hockey stick ‘up and right’ crypto charts where you see every bull running? You know what/who makes the charts do that?
They are not institutions. They are private buyers.
Institutional buyers usually come in six to 12 months before retail shows up.
That indicates that much of the bull market madness is yet to come!
(Who wants a running boob bump?)