Morning‌‌ ‌‌Update—March 4th—Macro and Crypto Markets

By Justin d'Anethan | Daily Market Update | 4 Mar 2021

If you’ve been reading this briefing for a while, you’re aware of the link between bonds and equities. Yesterday, again, bonds were sold en-masse, pushing the 10-year yield close to 1.5%. Investors feel like they are due for a reopening of the economy and are cycling away from tech/growth stocks and onto more ‘real economy’ type of names.

The S&P dropped another 1.3% and the Nasdaq dropped more than 2.5%.

In the crypto space, while we’re far from being qualified as the ‘real economy,’ we seem to be enjoying a bullish tilt as well. BTC is back above $50,000, closing the session up more than 5%. The intraday high even took us back to $52,600.

Alts also had a great day, not only up in USD terms, but also outperforming BTC (for some). LTC is up almost 8%, ETH is closing the day up well over 7%, and LINK is up almost 7%. DOT and ADA, typically bold explorers, stayed put, with moderate 2-3% gains.

It’s worth noting that the supply of USDT, typically the conversion point from fiat onto different cryptocurrencies, has been rising steadily. This suggests that the appetite for crypto has not waned and, if anything, is growing insatiably.

Looking at other onchain data, I’m loving some CryptoQuant data showing the mean inflow to exchanges along with the whale ratio (think large amount of coins about to be sold/traded). So far, we’re at relatively low levels, suggesting that large holders aren’t as present as they typically would be prior to large sell-off’s. This is supportive of decreased supply and increased demand (ie. higher prices).

Away from pure price action, we heard of yet another billionaire investor getting involved in crypto: This time, Marc Lasry invested in the crypto firm BlockTower.

Maybe even more important, Ethereum is now available on Amazon Managed Blockchain service; this hints at not only transactions but a flurry of smart-contract that could help Amazon’s merchants, users and partners. If this isn’t bullish, I don’t know what is.

Cryptocurrency Bitcoin (BTC) Crypto Ethereum (ETH) Crypto News

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

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.