$5 Billion in Quarterly Options Expiry, MicroStrategy Continues Bidding

Equities and crypto markets are drifting lower amid continued pressure from rising yields. The 10-year Treasury is higher by 8 bps, topping 4.5%, corresponding with a rise in DXY, which tends to move inversely to crypto prices. Markets have continued to move lower after interpreting the Fed as higher for longer last week. The S&P is on track for its second losing month in a row and worst monthly performance since December (-4%). BTC is down 4.2% in the last week, retracing to $26.1k today after last week’s rally to $27.4k. ETH is trading at $1.58k while the ETHBTC pair has reclaimed .06 at writing. Given the headwinds from the dollar and rising interest rates, bullish investors will be hoping for tame inflation numbers from this Friday’s PCE and University of Michigan Inflation expectations. They will also be watching whether the U.S government can avoid a shutdown that would pause all nonessential functions if Congress fails to reach a funding deal by October 1st. Crypto markets will likely continue to trade primarily on shifts in macro and liquidity conditions, barring any unexpected industry-specific catalyst.