Crypto markets (trading 24/7) didn’t rest and, unlike equities, rose. BTC gained almost 5%, rising from $35,500 to the current $37,300.
Last Friday finished on a risk-on tilt, with most equity indexes retreating at the end of the session, but still closing higher. Bonds were bought, pushing the 10-year yield, while gold rose to above $1,900. The dollar moved slightly up and slightly down, but is still trending lower.
I was looking at the dollar index on both a short and long-term basis: Its short-term moves up and down and seems to be affecting markets. The bigger picture, however, is that it’s inexorably going down. That’s a positive for real assets, if only from a price perspective—let’s ignore the real value for now. Equities remain elevated but with no indication of going down. Gold seems well supported, close to $1,900.
It’s been a somewhat tepid session all around. Investors are looking at both the next move from the Fed and the jobless claims data, due later today. Equities closed in the green but almost flat, and bonds in the red but almost flat. The dollar seems to have gained somewhat and, in response, gold retreated slightly.
Interesting dynamic to observe in macro markets. While Fed comments remain accommodating, disappointing economic data pushed investors to sell stocks and buy bonds. The 10-year yield fell to 1.55%, which ultimately is a positive for equities. It’ll be interesting to see how far up or down they’ll go before things revert. Gold seems to be flourishing in the inflation-fear environment, now close to $1,900.
It’s been a long-time coming: Ray Dalio, manager of the world’s largest hedge fund, finally said (admitted?) that he owns “some Bitcoin.”
In traditional markets, both the S&P and the Dow closed last week in the red (as they did the week before). The Nasdaq closed just barely higher.
Both traditional markets and crypto markets are up, yet there’s a different ambience in the cryptosphere. For all the people who held on amidst the crash, congrats, you’re at least higher now than when things dropped to 30,000.
Many times, macro market sentiment affects crypto prices, but yesterday, it seems like the opposite happened. I won’t dive too deep into it, but traditional markets had a strong risk-off session.
Traditional markets traded muted yesterday, with bonds slightly sold and the 10-year yield pushed a tad upward. Equities closed flat or barely down, holding up the recovery sessions seen at the end of last week. Gold might be the highlight, falling upon opening, only to close 1.5% higher, at $1,865.
It’s an interesting time to be looking at crypto markets and traditional markets. Unfortunately, for now, the former really is underperforming.
We’re seeing nearly predictable market moves. After three days of decidedly bearish sessions, equities finally paused and recovered some of the previous session’s losses. The S&P, the Nasdaq, and the Dow all rose around 1%. Bonds were also bought, pushing the 10-year yield back below 1.7%.