In my last briefing, I mentioned things felt supported across traditional markets. As a sober reminder that things can change quickly, investors actually turned risk-off yesterday. Retail data came out, showing sales dropped more than expected, including car sales which declined even further. As a result US equity indexes dropped. It is interesting however to notice that in the second half of the session, they already started bouncing back up; the day was red but the close was really just half a percent lower. On the other hand, the dollar rose boldly.
With the dollar strength and bearishness in equities, we saw the risk-off sentiment permeate the crypto space. BTC fell an additional 2.5%, now hovering around $45,000, while alts broadly underperformed.
In the alts realm, the worst performers were probably THETA, down about 12%, but also AAVE, XTZ or UNI dropping 10%. Other coins are honestly not necessarily doing better, most cryptocurrency you’d look at fell between 5-10%.
I personally really explain this pullback as a reaction to macro markets down session but also, probably, the fact that the total crypto market cap tested the $2 trillion mark and was probably the right spot for some traders to take profits across their full portfolio. I’m personally, as always really, just holding on and looking upward.
Looking at interesting data that came through yesterday, it’s interesting to see that the total value locked in DeFi is fast approaching the all-time high. There’s really something to notice here. Regardless of price action and cataclysmic predictions, people still are happy to plug in decentralised finance solutions, rather than be out of the game, out of crypto or leave money sitting in traditional banks and bonds.
An area I don’t look at much is NFT’s, but, it’s worth noting that volumes are just cracking up these days, with about $1 billion transacted month-to-date… and we’re not done with August yet. It’s also nice to see that sales on OPENSEA have -unsurprisingly- shot up but that the search interest on Google isn’t anywhere near what it was in March of this year, suggesting we have even more room to grow towards.
Lastly, as a quick information nugget, Galaxy Digital just filed for a US Bitcoin Futures ETF. It might sound like a silly argument but I’m seeing just so many companies filing for similar products, we’re bound to see at least some go through and even one of them would be great.
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