Morning‌‌ ‌‌Update—May 7th—Macro and Crypto Markets

Morning‌‌ ‌‌Update—May 7th—Macro and Crypto Markets


Yesterday, an appetite for risk took over investors. Equities were bought ‘en masse’, pushing the Dow to record highs of $34,560 while both the S&P and Nasdaq rose. Bonds on the other hand were sold, with the 10-year yield now at 1.56%. Gold broke through to $1,815, after a 1.6% gain.

 

In the crypto space, while BTC almost seems to be stagnating in the 59-53K range, most coins are up on the session.

 

BTC edged down 1.7%, now at $56,400. ETH on the other hand ventured to record levels (intraday); the new all-time high is $3,610. On the session, though, we ended up closing 0.5% below the open.

 

The BTC Dominance -inexorably- continues to fall, now at 45.5. It’s not just ETH that’s outperforming, though. XTZ is up a massive 16%. ADA is up 14%. ZEC up 7%. DOT is now picking up after some disappointing performance, gaining about 5%.

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Let’s talk about the news but after there’s some market data I want to look at. 

 

Goldman Sachs is now offering bitcoin derivatives to wall street investors; this will be an open door for a flurry of large investors to get involved in crypto. 

 

Even now we can already see retail investors pouring in with Square reporting $3.51 Bn in bitcoin revenue via its Cash app, for the first quarter of 2021.

 

To look at more on-chain and exchange data, thanks to a CryptoQuant chart, we can see the on-exchange reserves at below the levels seen during 2017 high. This is noteworthy because, since then, about 2,000,000 more bitcoins have been mined. The set-up is very supportive to higher prices, showing that holders are not in trading/selling mode.

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This is highlighted on a shorter-term basis by this other CryptoQuant chart, showing deeply negative exchange netflows (on the chart on a 30-day moving average), this shows that instead of adding coins to exchanges when prices rose (to take profit and sell), more people withdrew to store and hold. Naturally, this greatly reduces immediate selling pressure and so hints at another leg up.

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Are you holding as well?

 

 

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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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