Morning‌‌ ‌‌Update—August 4th—Macro and Crypto Markets

Morning‌‌ ‌‌Update—August 4th—Macro and Crypto Markets


The pendulum that is investors’ minds swung back yesterday. After a bearish session on Monday, Tuesday, investors bought equities supported by positive earnings and the idea that some of the business activity resembled or approached pre-pandemic levels. The 10-year yield remains constrained, though, suggesting that bond traders, on their side, still hold concerns about the economy.

 

BTC did not follow equities higher and continued to fall below the 40K resistance, down almost 2% on the session, at about $38,500. The candle looks interesting, though, with an equal long wick at the top and bottom, suggesting a potential narrowing or settling at this level.

 

The BTC dominance is flat today. Alts have been, broadly speaking, matching BTC retracement. Among the outperformers, LUNA -always- gained about 17%, and STX also rose about 7%. Otherwise, most coins are flat or slightly down.

 

The dynamic I’m looking at these days is based on two charts, the exchanges’ reserves and the hodl waves. On one hand you can see a decreasing amount of BTC on exchanges, which is good, it means people are planning to hold. On the other, you have long-term holders growing, suggesting that the base of people “not selling” is bigger now than in previous cycles.

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I personally interpret that as the involvement of institutions and the understanding from other participants of that involvement. There’s been seriousplayers coming in with large capital and only so many coins to go around; current holders are wary of parting with the ones they have.

 

 

Away from BTC and to ETH, an interesting chart from CryptoQuant shows the amount of ETH being staked -therefore alleviating the selling pressure for exchange traders. It seems that while prices were falling more coins were nonetheless being deposited, giving a clearer way for buyers to push prices up.

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Back to the news and shorter-term factors, yesterday we heard of Senator Gensler reaching out to the SEC to broaden the regulations of crypto, including lending and DeFi.

 

Lastly, we heard some more from MicroStrategy in a recent interview where Saylor commented: “We continue to be pleased by the results of the implementation of our digital asset strategy. Going forward, we intend to continue to deploy additional capital.”

 

 

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Justin d'Anethan
Justin d'Anethan

Sales Manager at Diginex and EQUOS. Passionate about financial markets, long-term investments, the occasional short-term trade and disruptive technologies.


Daily Market Update
Daily Market Update

A quick market update (1-2min read). Every week day, morning in Asia, I go over major moves in macro and crypto markets, linking fundamentals to price action.

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