Morning‌‌ ‌‌Update—May 17th—Macro and Crypto Markets

Morning‌‌ ‌‌Update—May 17th—Macro and Crypto Markets


It’s an interesting time to be looking at crypto markets and traditional markets. Unfortunately, for now, the former really is underperforming.

 

With easing commodity prices and falling interest rates in the past few sessions, we saw the dollar follow yields down and then real assets like equities, gold and real estate pick-up in a decisive way.

 

In the crypto space, the decisiveness is there but to the downside. During this Sunday session, BTC prices tested $43,800; while we’ve now recovered back to $46,000 the continuation down from the mid 50K’s is significant. Could we retest the $40,000 mark, decisive level back in January? Would we even re-explore the mid 30K’s?

 

This is the aftermath of Elon’s tweet shining light on the mining energy consumption -an issue he knew about but must have had a point in raising now, whether that’s decreasing the price of BTC, highlighting that it should be a reserve asset but not an everyday currency, or maybe to meet some ESG requirements from large fund or just because of the carbon credit he himself sells to other companies.

 

Back to price action, though, I should point out that if you’re a diversified holder, this is a great time to make BTC gains. The BTC Dominance is all the way down to 40. This means alts have continuously outperformed -and so even though they’re down, they’re up in BTC terms. 

 

ETH is currently holding up very well at $3,550. Similarly ADA, AAVE, DOT, LINK are shining as very strong performers.

 

I also want to talk about stablecoins, today, not from a price variation perspective of course, but for what they mean for the space. If you were wondering if the supply of ‘dry-powder’ has decreased during this dip, it hasn’t. The amount of cash getting ready to be poured in the space isn’t shrinking, it's growing. 

b37795f74d81904703cdf19d251e6bdcd702db6492dd343abc885a20267c0aba.jpg

 

While doing some, I came across this table, showing the decreasing volatility of stablecoins suggesting that as the supply grows so does their stability. Also interesting to see that USDT’s dominance is decreasing, undoubtedly as a result of institutional involvement that went for more reliable options (USDC, mainly).

79f51dbc7b89ff41de81859fe2eb38acc0e764384d04063b2142d6d7c05ae1dc.jpgb68f1768c8c605f2fded1d0c023ec6ba46c6a197ca861155fc6f425d3d250970.jpg

 

By the way, last information nugget: did you see that crypto/blockchain companies raised an astounding $2.5 Bn in Q1 2021 alone. That’s a lot of capital invested in the success of crypto.

c7b879df7e5f5118ce5f4aa0dc0f9788813fcbf99fcaf7434726d99a299732a4.jpg

 

 

Follow Me On Twitter On: https://twitter.com/justindanethan

Sign up on EQUOS via: https://tinyurl.com/ybdvmu3z

Sign up on YouTube via: https://www.youtube.com/c/JustindAnethan  

How do you rate this article?


52

1

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.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.