BTC Nearing Key Technical Area, xNFTs Bring some Buzz to Solana
The NDQ has slid 0.3% on Monday as investors anticipate corporate earnings reports from major tech companies, while the ^SPX 0.13% is effectively flat. Investors are closely watching for earnings results from mega-cap tech firms, including Alphabet, Microsoft, Amazon, and Meta, marking the halfway point of the earnings season. Both BTC and ETH are moving lower in concert with major equity indices, and most altcoins, including MATIC and SOL, are following a similar trajectory. This bearish price action is occurring despite a decrease in treasury yields and a move lower for the DXY. Of note, the spread between the 1-month and 3-month t-bills continues to widen (pictured below). This morning it reached an all-time high of 180 bps, perhaps suggesting that the market is anticipating an earlier “drop dead” date for the US debt ceiling and consequently reducing demand for treasuries beyond this date. As our note on Friday mentioned, all else being equal, it is prudent to de-risk ahead of this event. Resolving the debt ceiling issue could result in liquidity being withdrawn from the market.