Morning‌‌ ‌‌Update—May 13th—Macro and Crypto Markets


This morning won’t feel great to holders of risk assets. 

In traditional markets, reports on rising inflation seriously affected markets with the S&P and the Dow falling almost 2%. The Nasdaq lost more than 2.5% on the session, as tech stocks led down. On the fixed income side, we saw bonds sold and yields rising with the 10-year crossing back above 1.7%. Amidst the risk-off move, gold lost as well but, longer-term, this is the asset that might hold up better, against inflation fears.

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In the crypto space, BTC isn’t feeling great either. While inflation is supportive long-term, the general mood weighted on. A major impact was also Elon tweeting that Tesla will actually not accept bitcoins as payment anymore, citing environmental concerns linked to mining and fossil fuels used to power operations.

 

BTC fell a full 7% on the session, currently holding on at $52,700. Those are not bad levels to be at on a large scale, but, this comes after positive days taking us in the mid and upper 50Ks.

 

Conversely, alts are outperforming -undoubtedly because mining is more energy efficient for a lot of the projects. ETH actually breached new highs intraday, all the way to $4,380, and is closing barely in the red. Other coins are down but comparatively less than BTC. DOT is doing well, AAVE jumped over 25%, SNX is up 10% in the past 24 hours. 

 

The BTC Dominance index is now down at 42.5.

 

In other news, it’s fascinating to see that Ethereum miners are now seeing higher revenues than Bitcoin miners, the first time this shift has ever happened, if my memory serves me right.

 

Less fun, a report shows that SEC crack downs on crypto firms is now topping $1.7 billion in penalties, across all cases still but a massive number.

 

From a broader perspective and to go back to the inflation discussion which seems to lead. Ultimately, this is good for crypto and if anything is the moment for decentralised assets with a limited supply to shine. With a pick-up in inflation and essentially a decreasing dollar value, real assets (of which BTC is) serve as a safe-haven. It’s actually relatively easy to see the dynamic dollar down, BTC up. It’s time to hold on.

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Justin d'Anethan
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
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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