Adding RON and IMX As a Different Flavor of ETH-beta and Gaming Exposure (Core Strategy Rebalance)
Market Shrugs at Hot CPI
The latest Consumer Price Index (CPI) data indicated a hotter inflationary environment than forecasted for February. Despite the surprise in the numbers, market participants appeared largely unmoved, suggesting that the potential impact had already been factored into their calculations prior to the release.
This resilience reflects a broader sentiment that a rates-driven selloff, in response to the CPI figures, is not a significant near-term risk. This interpretation is further supported by the modest adjustment in the Fed funds futures market, which saw an increase of merely 10 basis points in the anticipated fed funds rate for December.
The prevailing market demeanor implies a notable shift in expectations, with investors increasingly inclined to trust the Federal Reserve's guidance. As we have noted in prior notes, the burden of proof, it seems, has now shifted towards the hawks to demonstrate a resurgence in inflation, rather than on the doves to prove its decline.
Real Near-Term Risk: Tax Season
Below we see that the Fed Liquidity metric that we like to track for domestic liquidity conditions has remained high, bolstered by a 20% YTD drawdown in the Reverse Repurchase Agreement (RRP), which enhances the reserves within the ban...Reports you may have missed
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RESEND: Bitcoin ETF Equilibrium Price Dynamics: ETF likely to drive significant rise in daily demand
BY POPULAR DEMAND, WE ARE RE-SENDING THIS BITCOIN PRICE IMPACT OF SPOT ETF REPORT FROM JULY 24, 2023 The Bitcoin spot ETF was finally approved. And we are seeing the surge in price of Bitcoin because of attractive supply and demand dynamics.We received multiple requests to resend this report from July 24, 2023 which looked at supply and demand dynamics if a spot ETF was approved.In short, we believe a...
FLOWS BEGET MORE FLOWS We have recently discussed the potential return of crypto being correlated with equities due to the new category of market participants entering the fold. However, price action this week suggests that inflows into the BTC ETFs may be throwing water onto that theory. It seems apparent that, at least in the near-term, that the ETF flows narrative is gaining steam, and it is likely that the...
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