Ultimately, prices didn’t change much and closed near record levels for equity indexes and, in the case of gold, just a tad under the $1,900 mark.
In the crypto space, in a more violent (albeit similar) fashion, prices crashed yesterday, only to then be bought en masse. So BTC actually is closing precisely where it opened, creating a very flat day, but the intraday moves were strong and took us more than 7% lower, at $31,000. It might not feel like it, but this type of action is bullish. Leveraged longs in the mid 30K’s got liquidated (pushing prices down), only to be met with a flurry of buyers pushing it back up.
Across alts, a similar dynamic took place, and, as one would expect, in a slightly more dramatic fashion. ETH fell 10% intraday only to walk back on losses and close only 2.5% down, at $2,500.
Some other coins, such as ADA, GRT, COMP, and DOT, held up better and actually rose between 0% and 1%.
There are several pieces of news and data to take into account. For example, it seems that the activity on the Bitcoin blockchain has decreased quite a bit in the past few days. It’s also interesting to note that volumes on BTC have dropped. Conversely, the ETH activity and volume remains comparatively stronger.
The interest in BTC hasn’t really waned, though. MicroStrategy, which initially offered $400 million in secured notes, just raised the amount to $500 million as they received more than $1.5 billion in orders—an amount that astonished most people, myself included.
Away from purely Bitcoin, it’s interesting to see Amazon looking to hire blockchain staffers with experience in DeFi. Around the same time we saw Spartan Group closing a $110 million raise for their DeFi-focused fund.
On the regulatory front, though, officials are gearing up to have a much more hands-on approach as the IRS urges congress to regulate crypto and get crypto data. We are also seeing governments in different countries seriously studying the creation and issuance of CBDC, for better or for worse.
Written by: Justin d'Anethan, Sales Manager
With investors looking at the next Fed monetary policy meeting, equity indexes rose yesterday. The S&P reached new records while the Nasdaq closed within 20bps of the all-time high.
Welcome to the Weekender: Your weekly round up of the most viewed stories of the week, as voted by you, our readers. This week has seen the negative news flow replaced with tales of adoption, it appears the central bankers, country leaders, and the financial institutions have all agreed: Digital finance is here to stay.
Yesterday, the US reported CPI data—an index calculating the price increase or decrease of a basket of goods. The number is higher than expected and indicates inflation is picking up.