Morning‌‌ ‌‌Update—May 27th—Macro and Crypto Markets

By Justin d'Anethan | Daily Market Update | 26 May 2021

It’s a somewhat tepid session all around. Investors are looking for the next move from the Fed and also for the jobless claims data, due later today. Equities closed in the green but almost flat, bonds in the red but almost flat. The dollar seems to have gained somewhat and in response gold retreated slightly.

Maybe for very different reasons, in the crypto space, the same atmosphere prevails. It’s the calm… after the storm?

BTC rose to $40,700 yesterday only to walk back on those gains and close 1% up, at $38,700. While that’s happening, it’s interesting to see the BTC dominance continue to fall, now back below 43. Investors are regaining faith and seem happy to buy alts as they outperform.

ETH gained almost 5% on the session. It’s fascinating to see a chart from Messari, showing traded volume for ETH has caught up and is starting to outpace BTC’s volumes (for the first time, I think).

LINK was the better performer, back above $30 after an 18% rise. SOL and VET gained around 15%. ADA is up about 10%. Other coins like DOT, THETA and COMP are also doing great, rising around 8%.

Before touching on the news, I want to mention two charts from Glassnode. One shows the pullback in profitable addresses, something that happens in every cycle and typically happens more than once; if anything it indicates we’re only getting started in this bull run.

Another chart shows the accumulation addresses (those that just don’t sell/trade) and they just have never stopped growing, especially during this pullback. Are you one of those? Long-term investors have been buying, no selling.

With regards to news that came through, it’s all supportive, as far as I can see:

Apple is posting job offers for ‘alternative payments’... I think we know what that hints at.
Also nice to see that a tech-focused ETF allocated to Grayscale BTC fund, hinting at maybe more financial products getting at least partial exposure to crypto assets.
Lastly, while before Paypal’s crypto purchases and sales were to be done within the PayPal platform, they’re now looking to allow transfers out of PayPal; this is another step in the right direction, towards broader adoption and use cases.

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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

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.