Morning‌‌ ‌‌Update—September 6th—Macro and Crypto Markets

Morning‌‌ ‌‌Update—September 6th—Macro and Crypto Markets


With disappointing jobs numbers in the US (250,000 actual instead of 750,000 increase, in non-farm payroll), investors turned fearful of the impact of the delta covid variant and sold risk assets. Looking that the charts, though, you wouldn’t tell; there’s a slight move down but that’s about it. Tech stocks actually rose well.

 

What’s also gained well is crypto. BTC is now decidedly above the 50K mark, hovering around $51,700, after a bullish Sunday where prices rose almost 4% on the session alone.

 

Interestingly enough, the BTC dominance continues to drop and we’re now settling at around 41.40, showing that alts have and are gaining grounds again, as the market sentiment turns more bullish and more speculative.

 

Amongst alts best performers, we’ve seen DOT and the parachain KSM gain massively, with sustained 7-day gains of about 30-35%. LINK and VET are trailing not too far behind with again sustained 7-day gains of 25-30%. A coin I’m also looking at and that seems to be moving again is MATIC, which for a while stayed put while the rest of the altcoin market moved; it’s down 4.4% on the session but showed solid gains on a longer timeframe.

 

Besides alts performance, another indicator of bullishness is the positive funding rates across various exchanges’ perps, showing that buyers are paying sellers for their leveraged bets. As always leverage can create violent set-ups but, in moderation, it’s a healthy sign of risk-taking.

 

An interesting chart from CryptoQuant also shows a metric showing that we have room to go up: Bitfinex whales placing shorts -or currently the absence of it. We can see that as short positions rise suddenly, the main market is constrained. Right now, the absolute calm suggests large players are happy to let prices rise.

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An interesting piece of news, raised by a colleague, suggests that MicroStrategy might be taken out of the S&P SmallCap 600. I haven’t been able to confirm this in other news sources but it would be an interesting move for the S&P and also for the crypto space, to see how people react.

 

Lastly, something to pay close attention to is El Salvador. It’s been a while since the bill to make BTC legal tender was passed but the effect will actually take place tomorrow, on September 7th. There are groups of people on Reddit and Twitter pushing to buy BTC to support their initiative and it’s going to be fascinating to look at the price action and the dynamics of the country’s economics.

 

 

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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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