Volumes Dry Up, MicroStrategy Adds to Their Stack

Markets continue to stumble into year-end, as equity and crypto markets are inching lower Wednesday morning. Rates show interesting divergence, with shorter-term rates moving slightly lower and longer-term rates increasing. At the time of writing, the US 10Y yield is 0.7% higher, while the US 02Y is 0.6% lower since the market open. The ^SPX -0.13%  (-0.5%) and QQQ -0.08%  (-0.6%) are slightly lower in today’s trading session. Meanwhile, BTC (-0.4%) and ETH (-1.2%) are moving in concert with equities, while most alt-layer 1 platforms are down 2% or more. In addition to general macro factors, fund redemptions may be adding additional selling pressure to many of the assets that hedge funds favored over the last year. Given the carnage across most asset classes this year, combined with seasonal apathy, market liquidity remains low. As reflected by ETH spot volumes pictured below, we have not seen a dearth of trading activity like this for over two years.