386 Days Above The 200 Day Moving Average

A Bitcoin Top Signal?

In other speculative news, Jamie Dimon, the CEO of JP Morgan, came out saying he regrets calling bitcoin a fraud because he believes in the blockchain technology. This is a common opinion on Wall Street, but it's a big deal anecdotally because a big bear has sort of been broken because of the price action. Even though Jamie Dimon isn't bullish on bitcoin prices, the fact that they rallied added to the pressure for him to clarify his position. Bears being heavily criticized shows how excessive speculation has become. Although the cryptocurrencies have sold off in the past few days, their total market cap is still $748 billion which is higher than it was a few weeks ago. With bitcoin at $14,800, it still hasn't broken the all-time high it made in December.

Global Volatility Is Also Low

Keeping in tune with the American markets, which had the VIX remain at a 9 handle on Tuesday, global equities also have had a great run. As you can see in the chart on the left, the global equity realized volatility is below 7% which is about as low as it has been since 1987. The chart on the right shows that the MSCI all country world index has had a realized volatility below 7% for 98 straight days. The previous record was 100 days in 1994. There's no reason to think it won't be broken as emerging markets continue to push economic growth higher.