Morning‌‌ ‌‌Update—May 11th—Macro and Crypto Markets

Morning‌‌ ‌‌Update—May 11th—Macro and Crypto Markets


From time to time we mention commodities but, these days, they are the highlight. With rising prices in copper, iron, crude and lumber the idea that inflation is coming pervaded the minds of investors. Bonds were sold, pushing the 10-year yield back above 1.6% and, as we’ve seen happen before, tech stocks suffered most. The Nasdaq fell almost 2.5%, the S&P lost over 1%. 

 

In the general risk-off sentiment, we saw BTC pull back about 4.2% on the session, with intraday lows down 8.3%. We’re still at decent -should one say, consolidating- levels, currently at $56,000. The BTC Dominance index remains low, at 45.5.

 

Indeed ETH, which did fall intraday, is closing in the green, still outperforming, currently just a tad below $4,000. 

 

Along ETH, we see COMP and SOL holding on well. Other alts suffered more, I’m thinking in particular of LINK, DOT, or ADA. respectively down 10%, 8% and 5%.

 

Onto more long-term and fundamental data, the numbers still point to a very supported and very bullish set-up.

 

On one hand, you have a still increasing supply of stablecoin which, obviously, suggest fresh fiat capital is coming into the crypto space to be used on exchange -and naturally to buy crypto.

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We then see deeply negative exchange net flow (that means more coins going away from exchanges and fewer coins going in), which suggests that more people are hodling and fewer people are ready to sell. And we’re seeing that on OTC desks as well, where the supply is much lower than pre-bull run (and that’s a good thing, to have less selling pressure).

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It’s also interesting to see less leverage on derivatives exchanges, compared to recent times, when BTC was at these levels. With more real money in, leverage can come later, if/when we go for another leg up.

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The picture looks very similar for ETH which says: there’s no reason to get out here.

 

By the way, so that I don’t leave you without any daily news: did you hear that UBS is now exploring offering crypto investments to qualified investors. While this can be dismissed as just another bank talking crypto, it is just that, yet another massive bank getting enough interest and seeing enough value in the crypto space to start making the shift… and ultimately that means more capital flowing in.

 

 

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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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