Much Wow
Coins Do Not Care About EPS
As we have addressed over the past month, cryptoassets were nonreactive to the onslaught of gruesome tech earnings this week. At the time of writing, bitcoin, ether, and the rest of the crypto ecosystem have vastly outpaced the Nasdaq.
As we can see below, a major contributing factor to crypto doing so well is yields rolling over for the first time since early October.
Some questions that remain now are:
- How much relief will we see over the rest of this quarter?
- How much will crypto’s relative strength be able to avoid any periodic uplift in rates?
If we get a prolonged drawdown akin to the one that we saw from June through August, it is possible that we see a rather aggressive rally to the upside through year-end.
The chart below frames the recent magnitude of the pullback in rates relative to global interest rates via the pullback in the dollar. This chart displays the deviation of the $DXY from its 50-day moving average. Clearly, we have seen a relatively sharp drawdown recently.
Interestingly, throughout this year, we have witnessed this metric drop sharply on several occasions, but this appears to be the most extreme deviation from this moving average since the beginning of this year.
Source: Fundstrat, Tradin...Reports you may have missed
INFLOWS RESUME On Monday, market sentiments were rattled by a surprisingly strong manufacturing PMI figure, marking the first expansionary reading in 18 months. This led to a rise in rates, with risk assets across the board experiencing selloffs amid renewed inflation concerns and fears that the Federal Reserve might need to implement further measures to cool the economy. However, in our crypto comments video on Tuesday, we outlined a couple...
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....
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...
Articles Read 1/1
🎁 Unlock 1 extra article by joining our Community!
You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.
Already have an account? Sign In 337a9f-667180-c1f4ad-20beef-6345bc
Already have an account? Sign In 337a9f-667180-c1f4ad-20beef-6345bc
