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Stocks, Greed and Exuberance: 5 Things to Watch in Bitcoin This Week

Stocks, Greed and Exuberance: 5 Things to Watch in Bitcoin This Week

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Bitcoin price remains stable above $9,000 as data increasingly points to irrationally optimistic behavior on correlated stock markets.

Bitcoin (BTC) begins Monday by avoiding another test of $9,000, but what could happen to change the mood or even set off a bull run?

Cointelegraph takes a look at five major facts that could influence the BTC price during the coming week. 

Stocks under pressure: does “valuation” matter?

The macro outlook seemed more or less stable on Monday. Prior to trading, futures for the Dow Jones, S&P 500 and more were modestly up, despite concerns mounting over coronavirus.

Specifically, one source quoted by Bloomberg warned on Sunday, the sentiment is one of worry — both about the spread of cases and the United States’ response to protect the economy. 

If the Federal Reserve intervenes in equities yet again and adds to its balance sheet, it would increase the sense of an artificial presence on the markets in terms of competition.

“There is an emerging possibility that the Fed hasn’t gone far enough,” quantitative strategists at Sanford C. Bernstein wrote in a note.

“If that came to pass, then maybe valuation of the market simply doesn’t matter.”

Fed balance sheet as of July 7

Fed balance sheet as of July 7. Source: Federal Reserve

As Cointelegraph reported, Bitcoin has shown no signs of lessening its dependence on stocks in recent weeks. Moves up or down appeared to shape BTC/USD performance, with last week’s trip from $9,000 to near $9,500 and back down again being no exception.

Analysts particularly eye the S&P 500, an index with which Bitcoin currently shows a 95% correlation. 

Coronavirus is also weighing on U.S. consumer confidence, fresh data meanwhile shows, with five indicators all flashing bearish in July after recovering during the two previous months.

A tale of two Fear & Greed indices

On the topic of macro, trader sentiment in cryptocurrency still contrasts with that of traditional markets.

That was the conclusion from two incarnations of the Fear & Greed Index, a basket of factors designed to show whether traders are overly risk-off or unduly confident.

The Crypto Fear & Greed Index remains in the “fear” category with little movement for several weeks. By contrast, the traditional market equivalent is flashing “greed,” while slowly trending downwards towards “neutral.”

On a scale of 1 to 100, Monday scored 59, down 7 points from the same time one month ago. The cryptocurrency equivalent measured 43 for Monday and 38 last month.

Fuelling traditional “greed” was “extreme greed” in stock price breadth, while derivatives put and call options, along with safe-haven demand, also sat firmly in the “greed” range.

Crypto Fear & Greed Index 1-month chart

Crypto Fear & Greed Index 1-month chart. Source: Alternative.me

Cash, gold inflows beat stocks in 2020

The greed narrative fits with other signs that stocks, in particular, are overly buoyant. 

As noted by market commentator Holger Zschaepitz on Monday, the correlation between the Nasdaq and S&P 500 is on the up, in what he describes as a “sign of exuberance.”

At the same time, banks are gearing up for a dismal quarterly performance, something that is on track to be the worst since the 2008 financial crisis.

As Cointelegraph noted, misgivings about stocks’ recovery since March have long persisted in Bitcoin circles. The Fed’s interventions, in particular, have fuelled accusations that the entire atmosphere is now artificial, and “true” value is of limited relevance.

Numbers this week show that investors themselves have in fact gone for cash and gold — not equities — in 2020. Inflows into the two assets beat others since the start of the year, similar to 2008-9.

Inflows as a % of assets under management chart

Inflows as a % of assets under management chart. Source: Jeroen Blokland/ Twitter

Bitcoin fundamentals stay strong

Monday sees a new Bitcoin difficulty adjustment, the latest in a series of bullish moves that underline miner confidence.

With the event just hours away at press time, estimates suggest a difficulty uptick of around 9.5%

This is much stronger than the previous move two weeks ago, which was stagnant, and on the way to matching last month’s 15% surge, which was the largest since early 2018. 

Difficulty represents how much effort is required to solve equations when mining new Bitcoin blocks. Upward adjustments suggest more competition, with Monday’s estimate slowly increasing over the past week.

At the same time, the network hash rate, having reached an all-time average high last week, has tailed off slightly. Data from Blockchain estimates a seven-day average of 124.42 EH/s for Monday, having previously hit 126 EH/s.

Hash rate is a sensitive and inexact metric, but nonetheless provides an idea of how much computing power is being dedicated to Bitcoin mining. Major swings are not uncommon, and a popular theory suggests that bullish progress for hash rate is followed some time later by a copycat Bitcoin price move.

Bitcoin 7-day average hash rate 1-month chart

Bitcoin 7-day average hash rate 1-month chart. Source: Blockchain

Warnings remain over derivatives

Bitcoin futures markets generated few opportunities for price movements over the weekend. Low volatility means that markets will begin Monday in a similar position to that at which they ended on Friday.

If Monday and Friday do not match, a “gap” opens up in futures markets which the BTC/USD spot tends to fill in subsequent days or even hours.

CME Bitcoin futures chart showing lack of weekend gap

CME Bitcoin futures chart showing lack of weekend gap. Source: TradingView

Nonetheless, futures remain a source of suspicion for some. As Cointelegraph reported, in-house analyst filbfilb warned last week that weak performance could be a sign of worse to come. 

Specifically, one indicator showed uncanny similarities to the days before Bitcoin’s March crash. Should history repeat itself, he added, the drop, however, should not be as intense as at that time.

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Spread & Containment

SoCal Industrial Prioritizes Speed, Power and Sustainability 

Movement is key in the SoCal industrial space. Industrial real estate occupies some 200 million square feet of space in the SoCal region, with much of…

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Movement is key in the SoCal industrial space. Industrial real estate occupies some 200 million square feet of space in the SoCal region, with much of the activity driven by the Ports of L.A. and Long Beach. The swift movement – not storage – of goods from the port to their destinations, is priority. Currently, the industrial vacancy rate sits at 4%. While the increase in e-commerce during the COVID-19 pandemic caused industrial volume in the region to surge, volumes have declined 30% over the past year, returning to more normal, though still high, levels comparable to 2019.  

Attendees of I.CON West in Long Beach, California, had the opportunity to visit three impressive industrial properties in the SoCal region. The projects by Goodman, Watson Land Company and Bridge Industrial are in three different phases of completion and range in size from 165,000-500,000 square feet. 

The I.CON West group toured a 90-acre site in Long Beach purchased by Goodman, a globally traded real estate company, five years ago. The Goodman Commerce Center Long Beach was previously a Boeing manufacturing center with 100-foot clear heights that made it well suited for the current tenant Relativity, a company that makes 3-D printed rockets.  

Power is a major consideration for tenants in the region. Tenants are also asking for clear heights that are increasingly taller; the typical height in 2012 was closer to 32 feet, but buildings in the area are inching closer to the 40-foot range.  

Environmental concerns are top of mind in California. Long Beach requires a methane mitigation system and Boeing also required a vapor barrier to be added to the site as part of their land use covenant. The area was previously heavily comprised of oil fields, so vapor barriers are common. The state is working toward a 2035 goal of having 100% of new cars and light trucks sold in California be zero-emission vehicles, so sites are considering the current usage and future expansion of EV charging stations. Goodman’s site is equipped with 26 EV-charging stations but has the capability to expand to 100 more, as needs require. 

Watson Land Company’s site in Carson, California, is located in the South Bay, an area that includes many 1980s-era Class B buildings that are being redeveloped to meet modern usage and demand.  

One of the main challenges faced in this area is the heavy clay soil; Watson had to install an underground storm drain system to allow for percolation.  

One of the main advantages of the area is that it’s within the “Overweight Container Corridor” that allows for heavier vehicles – up to 95,000 pounds – to pass through with containers from the port.  

Watson Land Company is pursuing U.S. Green Building Council LEED Gold certification for this site; they were able to reuse or recycle 98.6% of the material crushed from the previous buildings. The company aims for LEED Silver or Gold in many of their buildings in California, part of its early legacy dating to the founding of Watson Land Company in 1912 with a commitment to serve as “good stewards of the land.” 

Another feature of the Watson Land Company’s building: ample skylights – a 3% skylight to roof ratio – and clerestory windows to bring in maximum natural light. 

For the final stop of the tour, attendees visited a former brownfield site in Torrance, California, developed by Bridge Industrial. Bridge Industrial considers their team problem solvers who can tackle sites like this one that require significant remediation. They have transformed the brownfield site into a modern, airy industrial facility with two stories of office space.  

Power, again, came up as a critical concern for tenants. Bridge Industrial used to provide 2,000 amps as the standard but now provides 4,000 amps as the new standard in response to tenant needs. One of Bridge Industrial’s buildings in Rancho Cucamonga (roughly a two-hour drive east from Long Beach) offers 4,000 amps with provisions for additional future service up to an astonishing 8,000 amps.   

With the dual ports and the LAX airport nearby, SoCal is poised to continue its strong industrial presence. Port activity, environmental regulations and evolving tenant demands – including for increasing power capabilities – are critical considerations for developers, owners and investors operating in this bustling region.


This post is brought to you by JLL, the social media and conference blog sponsor of NAIOP’s I.CON West 2024. Learn more about JLL at www.us.jll.com or www.jll.ca.

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Chronic stress and inflammation linked to societal and environmental impacts in new study

From anxiety about the state of the world to ongoing waves of Covid-19, the stresses we face can seem relentless and even overwhelming. Worse, these stressors…

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From anxiety about the state of the world to ongoing waves of Covid-19, the stresses we face can seem relentless and even overwhelming. Worse, these stressors can cause chronic inflammation in our bodies. Chronic inflammation is linked to serious conditions such as cardiovascular disease and cancer – and may also affect our thinking and behavior.   

Credit: Image: Vodovotz et al/Frontiers

From anxiety about the state of the world to ongoing waves of Covid-19, the stresses we face can seem relentless and even overwhelming. Worse, these stressors can cause chronic inflammation in our bodies. Chronic inflammation is linked to serious conditions such as cardiovascular disease and cancer – and may also affect our thinking and behavior.   

A new hypothesis published in Frontiers in Science suggests the negative impacts may extend far further.   

“We propose that stress, inflammation, and consequently impaired cognition in individuals can scale up to communities and populations,” explained lead author Prof Yoram Vodovotz of the University of Pittsburgh, USA.

“This could affect the decision-making and behavior of entire societies, impair our cognitive ability to address complex issues like climate change, social unrest, and infectious disease – and ultimately lead to a self-sustaining cycle of societal dysfunction and environmental degradation,” he added.

Bodily inflammation ‘mapped’ in the brain  

One central premise to the hypothesis is an association between chronic inflammation and cognitive dysfunction.  

“The cause of this well-known phenomenon is not currently known,” said Vodovotz. “We propose a mechanism, which we call the ‘central inflammation map’.”    

The authors’ novel idea is that the brain creates its own copy of bodily inflammation. Normally, this inflammation map allows the brain to manage the inflammatory response and promote healing.   

When inflammation is high or chronic, however, the response goes awry and can damage healthy tissues and organs. The authors suggest the inflammation map could similarly harm the brain and impair cognition, emotion, and behavior.   

Accelerated spread of stress and inflammation online   

A second premise is the spread of chronic inflammation from individuals to populations.  

“While inflammation is not contagious per se, it could still spread via the transmission of stress among people,” explained Vodovotz.   

The authors further suggest that stress is being transmitted faster than ever before, through social media and other digital communications.  

“People are constantly bombarded with high levels of distressing information, be it the news, negative online comments, or a feeling of inadequacy when viewing social media feeds,” said Vodovotz. “We hypothesize that this new dimension of human experience, from which it is difficult to escape, is driving stress, chronic inflammation, and cognitive impairment across global societies.”   

Inflammation as a driver of social and planetary disruption  

These ideas shift our view of inflammation as a biological process restricted to an individual. Instead, the authors see it as a multiscale process linking molecular, cellular, and physiological interactions in each of us to altered decision-making and behavior in populations – and ultimately to large-scale societal and environmental impacts.  

“Stress-impaired judgment could explain the chaotic and counter-intuitive responses of large parts of the global population to stressful events such as climate change and the Covid-19 pandemic,” explained Vodovotz.  

“An inability to address these and other stressors may propagate a self-fulfilling sense of pervasive danger, causing further stress, inflammation, and impaired cognition in a runaway, positive feedback loop,” he added.  

The fact that current levels of global stress have not led to widespread societal disorder could indicate an equally strong stabilizing effect from “controllers” such as trust in laws, science, and multinational organizations like the United Nations.   

“However, societal norms and institutions are increasingly being questioned, at times rightly so as relics of a foregone era,” said Prof Paul Verschure of Radboud University, the Netherlands, and a co-author of the article. “The challenge today is how we can ward off a new adversarial era of instability due to global stress caused by a multi-scale combination of geopolitical fragmentation, conflicts, and ecological collapse amplified by existential angst, cognitive overload, and runaway disinformation.”    

Reducing social media exposure as part of the solution  

The authors developed a mathematical model to test their ideas and explore ways to reduce stress and build resilience.  

“Preliminary results highlight the need for interventions at multiple levels and scales,” commented co-author Prof Julia Arciero of Indiana University, USA.  

“While anti-inflammatory drugs are sometimes used to treat medical conditions associated with inflammation, we do not believe these are the whole answer for individuals,” said Dr David Katz, co-author and a specialist in preventive and lifestyle medicine based in the US. “Lifestyle changes such as healthy nutrition, exercise, and reducing exposure to stressful online content could also be important.”  

“The dawning new era of precision and personalized therapeutics could also offer enormous potential,” he added.  

At the societal level, the authors suggest creating calm public spaces and providing education on the norms and institutions that keep our societies stable and functioning.  

“While our ‘inflammation map’ hypothesis and corresponding mathematical model are a start, a coordinated and interdisciplinary research effort is needed to define interventions that would improve the lives of individuals and the resilience of communities to stress. We hope our article stimulates scientists around the world to take up this challenge,” Vodovotz concluded.  

The article is part of the Frontiers in Science multimedia article hub ‘A multiscale map of inflammatory stress’. The hub features a video, an explainer, a version of the article written for kids, and an editorial, viewpoints, and policy outlook from other eminent experts: Prof David Almeida (Penn State University, USA), Prof Pietro Ghezzi (University of Urbino Carlo Bo, Italy), and Dr Ioannis P Androulakis (Rutgers, The State University of New Jersey, USA). 


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Acadia’s Nuplazid fails PhIII study due to higher-than-expected placebo effect

After years of trying to expand the market territory for Nuplazid, Acadia Pharmaceuticals might have hit a dead end, with a Phase III fail in schizophrenia…

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After years of trying to expand the market territory for Nuplazid, Acadia Pharmaceuticals might have hit a dead end, with a Phase III fail in schizophrenia due to the placebo arm performing better than expected.

Steve Davis

“We will continue to analyze these data with our scientific advisors, but we do not intend to conduct any further clinical trials with pimavanserin,” CEO Steve Davis said in a Monday press release. Acadia’s stock $ACAD dropped by 17.41% before the market opened Tuesday.

Pimavanserin, a serotonin inverse agonist and also a 5-HT2A receptor antagonist, is already in the market with the brand name Nuplazid for Parkinson’s disease psychosis. Efforts to expand into other indications such as Alzheimer’s-related psychosis and major depression have been unsuccessful, and previous trials in schizophrenia have yielded mixed data at best. Its February presentation does not list other pimavanserin studies in progress.

The Phase III ADVANCE-2 trial investigated 34 mg pimavanserin versus placebo in 454 patients who have negative symptoms of schizophrenia. The study used the negative symptom assessment-16 (NSA-16) total score as a primary endpoint and followed participants up to week 26. Study participants have control of positive symptoms due to antipsychotic therapies.

The company said that the change from baseline in this measure for the treatment arm was similar between the Phase II ADVANCE-1 study and ADVANCE-2 at -11.6 and -11.8, respectively. However, the placebo was higher in ADVANCE-2 at -11.1, when this was -8.5 in ADVANCE-1. The p-value in ADVANCE-2 was 0.4825.

In July last year, another Phase III schizophrenia trial — by Sumitomo and Otsuka — also reported negative results due to what the company noted as Covid-19 induced placebo effect.

According to Mizuho Securities analysts, ADVANCE-2 data were disappointing considering the company applied what it learned from ADVANCE-1, such as recruiting patients outside the US to alleviate a high placebo effect. The Phase III recruited participants in Argentina and Europe.

Analysts at Cowen added that the placebo effect has been a “notorious headwind” in US-based trials, which appears to “now extend” to ex-US studies. But they also noted ADVANCE-1 reported a “modest effect” from the drug anyway.

Nonetheless, pimavanserin’s safety profile in the late-stage study “was consistent with previous clinical trials,” with the drug having an adverse event rate of 30.4% versus 40.3% with placebo, the company said. Back in 2018, even with the FDA approval for Parkinson’s psychosis, there was an intense spotlight on Nuplazid’s safety profile.

Acadia previously aimed to get Nuplazid approved for Alzheimer’s-related psychosis but had many hurdles. The drug faced an adcomm in June 2022 that voted 9-3 noting that the drug is unlikely to be effective in this setting, culminating in a CRL a few months later.

As for the company’s next R&D milestones, Mizuho analysts said it won’t be anytime soon: There is the Phase III study for ACP-101 in Prader-Willi syndrome with data expected late next year and a Phase II trial for ACP-204 in Alzheimer’s disease psychosis with results anticipated in 2026.

Acadia collected $549.2 million in full-year 2023 revenues for Nuplazid, with $143.9 million in the fourth quarter.

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