Morning‌‌ ‌‌Update—July 19th—Macro and Crypto Markets

By Justin d'Anethan | Daily Market Update | 19 Jul 2021

Last week marked a strong negative week and the first one for this second half of the year. Inflation seems to rise. That being said, it seems to rise for specific products or industries; most analysts feel that fears might be overblown for now. On Friday, equities retraced sharply, falling around 1%, even in the light of positive retail numbers that beat expectations. The 10-year yield is falling as well, so is gold, these days.

Looking at BTC, prices are falling in what is clearly a down-trend (if you’re looking at the past two weeks) or, at best, a retest of the support zone. Right now, BTC is hovering around $31,500, at the very bottom of that range between 30K and 40K.

The BTC dominance is still edging higher then lower, typically around 46 or 45. Alts show a very mixed performance.

DOT, MKR, LUNA and AAVE are relatively outperforming in the past few sessions. ETH, MATIC and GRT are the underperformers, falling 1-2% percent.

Among some interesting news that came in the past few days. We heard of El Salvador potentially issuing its own stablecoin. This is not to compete with the US dollar but simply provide a blockchain based one, that will be managed and monitored by the government. The interesting part is: the whole country’s financial system would literally be on the blockchain.

On the very note of stablecoins, US Treasury’s Yellen said regulators would meet on Monday to discuss stablecoins -we don’t know yet if that will be a positive or negative for the crypto space. One hint comes from Jerome Powell saying “One of the arguments that are offered in favor of a (central bank) digital currency: you would not need stable coins. You would not need cryptocurrencies if you had a digital US currency.”

Away from the news and looking at onchain data, it’s interesting to see on-exchange reserves of ETH continue to decrease while, on a short-term basis, we’ve seen a massive BTC transfer (about 14,550 coins) going into exchanges (Binance specifically).

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Justin d'Anethan

Head of Exchange Sales at EQONEX. Passionate about financial markets, long-term investments, the occasional short-term trade and disruptive technologies.

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.