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Morning‌‌ ‌‌Update—June 30th—Macro and Crypto Markets

Morning‌‌ ‌‌Update—June 30th—Macro and Crypto Markets

Do repost and rate:

Rated:111

If prices are any indication, people are feeling good about the first half of 2021. While markets were plagued by inflation fears, those seem to have mostly been brushed off, as investors focus on the economic recovery. Yesterday on the session, most equity indices stayed flat but after strong trends up and to record highs (at least for the S&P and the Nasdaq). On the other hand, gold fell further still, now close to $1,750, as the dollar rises.

One could have expected the dollar strength to have the same impact in the crypto space. It didn’t. BTC is up almost 5%, currently trading at $36,000. We’re not out of the woods yet. Technically speaking, we’re still in a downtrend and, at best, still very much in the 32K - 42K range.

As BTC rises, you can see the dominance fall further. That is a normal phenomenon, as investors get more confident and venture in alts again. Some coins underperformed relative to BTC, I’m thinking of LINK, ADA and DOT, up -but just up less. Some other coins outperformed, I’m looking at: MATIC, ETH, AAVE, XTZ and VET.

A massive news that I believe bolstered investors was the purchase of Crypto Finance AG (a Swiss crypto broker and custodian) by the Deutsche Borse. While this might sound like just another purchase, the significance of an exchange like that, with the track record, the size and the clients it has, getting into crypto cannot be overstated and suggest the interest is growing and here to stay.

On the same day, ICAP, the world’s largest interdealer broker, announced it’s launching a crypto trading platform with Fidelity and Standard Chartered’s custody unit. Again, players of that size partnering up for this type of venture is super impactful for the space and should strengthen any investor’s conviction in the space.

On the less bullish side, a few days ago, a Mexican billionaire said that his bank was looking to offer crypto services, then, just yesterday, Mexican authorities warned financial institutions against using crypto-assets. It’s the back and forth we’re used to when traditional entities foray in crypto.

I still want to finish on a supportive note. A chart by CryptoQuant seems to indicate that institutions are getting in the space when prices retest the lower 30K’s; it simply tracks the GBTC premium relative to price. I suspect a lot of large investors are seeing this level as a good time to get in.