Morning‌‌ ‌‌Update—July 6th—Macro and Crypto Markets

With independence day in the US, a lot of the trading activity paused. We’re seeing futures flatten after what has been a massive ramp up last week, thanks to an overall good economic recovery but also, more recently, great jobs data in the US. It’s interesting to see oil, hitting new records high as an OPEC meeting was canceled, halting a potential increase in production.

Onto markets that don’t take any day off: crypto.

Yesterday, BTC walked back on most of the weekend’s gains, dropping from the mid 35K to now 34K, so down 3.5%. We’re still in that choppy ‘in range’ action but, looking at the chart, in potentially a smaller uptrend that could reverse the longer downtrend.

The bitcoin dominance continues to edge down slightly, now at 45.4. That means alts are not only holding up but grabbing some market share, which itself denotes a certain risk-on tilt. 

Among the best performers, AAVE and COMP (again) up about 13%. GRT up more than 4% and also LUNA up 2.5%. Other coins are actually down but down less than BTC or just tracking its performance.

Looking at interesting data, it’s great to see a CoinShares chart tracking weekly inflows -or outflows- of crypto-linked products. Last week was the first time in five weeks that inflows came back, suggesting institutions are finding this price point and the fundamentals appealing enough.

An interesting news that came through is the Philippines Stock Exchange planning to issue its own cryptocurrency exchange. While this might not sound like the most significant jurisdiction, it continues the slow seeping of crypto into traditional finance globally.

On a less bullish side, though, we just heard that Barclays in the UK is stopping clients from sending funds to Binance. Probably a good move on their side from a compliance perspective but definitely highlighting the fact that regulators are looking at this and have a real impact.

Lastly, because you know I like to look at on chain data, a chart by CryptoQuant shows the on-exchange reserves of ETH drying up. This either means people are going full on for decentralised exchanges, or, that the staking is indeed taking place and reducing the selling pressure all around, which in turns is supportive of higher prices. 

We’d love to hear your thoughts on all that, so, feel free to chime in and comment.

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