Investors, now addicted to the support from the Fed, continued to sell risk assets as the Fed minutes hinted at possibly, maybe, reducing their bond purchase program, which would then allow rates to rise further.
The S&P, the Nasdaq, the Dow all essentially fell 1%. On the other hand, the dollar is loving the announcement and printed another strong green candle, which in itself weighs on equities and gold for example.
The impact endures in the crypto space, BTC continues to drop -not massively but still. Yesterday’s session closed flat and early this morning, BTC hovers around $44,200.
While BTC falls, it’s interesting to see alts actually gaining again. I do feel like a shift is happening. I see it in market moves but also just in conversations with clients and friends; while BTC’s value proposition remains intact, people’s perception of alts and their value in a decentralised economy strengthens and solidifies. People take ETH much more seriously than before, and other coins as well, like MATIC, or DOT, etc.
Back to price action, the best performers yesterday were LUNA, which is just amazing to look at, in the past five days it’s risen 90%, while BTC was trading mixed; SOL is also doing great still, along with ADA, both up about 10%. Among the worst performers, though, STX, LINK and NANO all fell about 4%.
Onto data and news, I absolutely love a chart showing the on-exchange reserves of ETH. You can see it steadily trending down, which is super supportive right, and suggests people are staking it, hodling it, or maybe just using it to participate in decentralised platforms. All of this is supportive of higher prices.
You can see a similar trend of more exchange outflow with BTC as well, actually.
An interesting news that came across my desk is of course the Novi announcement, by Facebook. Instead of coming out with a new currency -which American regulator, understandably, really didn’t like- they’re setting up to launch a wallet that will enable transactions between users. This is an interesting workaround, which might just work, and which might be massive for crypto adoption worldwide.
Also very interesting to read a report on Robinhood’s earnings, showing that crypto grew from 2% to 41% of their total revenue, in the past year.
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