Morning‌‌ ‌‌Update—June 8th—Macro and Crypto Markets

Morning‌‌ ‌‌Update—June 8th—Macro and Crypto Markets


Many investors in macro markets are facing the conundrum of a better/recovering economy (good for valuations) and potentially higher interest rates (weighing down on valuations). Yesterday, both expectations fought as the S&P stagnated close to record highs. The Nasdaq rose and the Dow fell. It will be fascinating to see if we break higher… or not.

 

In the crypto space, we definitely moved lower yesterday. BTC fell over 5%, from a bit under $36,000 to now a bit under $34,000. The BTC Dominance index went down as alts continue to hold up better.

 

Everything is still in the red, by the way. ETH is down 3.5% which is the better outperformance along with MATIC. ADA and AAVE fell a good 5%. DOT fell a hefty 7%.

 

Besides price action, it’s worth checking out a few of Glassnode’s report charts.

 

One shows a move from very liquid supply into simply liquid supply. That’s supportive and shows that despite the sell-off, a chunk of traders moved their coins away from exchanges.

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On a less supportive note, a chart showing the number of entities with a non-zero BTC holding illustrates that, well, there are fewer of them and that suggests less enthusiasm, less participants, less capital. The pattern also resembles the sell off that followed 2017. 

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A third chart shows the long-term holder behaviour which is maybe the more significant data. It shows that they have been holding and accumulating. Naturally, if prices were to drop further, you’d see that faith and commitment tested but, for now, long-term investors are confident in these levels it seems.

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Onto recent news and articles. Over the weekend we heard of El Salvador moving forward to make BTC legal tender, now, there are rumours that Paraguay might move to do the same. Even more outlandish, maybe Brazil as well.

 

It was also interesting to see MicroStrategy announce a proposed private offering of $400 million of senior secured notes to buy BTC. A move that might help MicroStrategy, that’s now suffering significant fluctuations (aka dollar losses) quarter-to-quarter. But of course it might also help the crypto space.

 

Oh, and did you hear about US regulators successfully recovering millions in cryptocurrencies paid to the Colonial Pipeline ransomware hackers?

 

 

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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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