Morning Update - December 21st — Macro and Crypto Markets
World markets are at a difficult juncture. As we approach the end of the year, it’s trickier to position oneself regarding positive covid vaccine news while also hearing of new waves of cases around the world. Add to that some uncertainty about a stimulus bill in the US, and it makes for a murky picture.
The S&P retreated on Friday and this morning, Asian stocks seem set to follow. Bonds were bought and the dollar made a half-hearted bounce after a long and painful descent. Gold is staying flat for now.
Crypto, on the hand, is not staying flat.
While we didn’t see any more of the explosive moves that occurred last week, BTC hit an all-time high of $24,300. On Saturday, the King Coin was up 3% and, on Sunday, it closed slightly down (-1.2%).
ETH followed Bitcoin up previously, and also followed yesterday’s down session, falling about 3%. DOT and LINK both dropped as much. LTC fell 4% after an intraday drop of 10%. On the other hand, BCH and BNB both went the other way, rising around 10% over the weekend.
What news has affected the crypto markets? Over the weekend, here’s what I paid attention to:
- There was a Ledger hack in which around 1 million email addresses were leaked.
- The FinCEN proposed laws to KYC crypto wallets.
- As markets endured up, the spread between hedge funds (bearish) and retail traders (bullish) widened further.
- The CBOE Global Markets is preparing to launch crypto indexes.
- More institutions are openly bullish about BTC and are loading up. Recently, we saw Brevan Howard Asset Management and One River Asset Management on Bloomberg.
All this news on top of the OI on derivatives exchanges, which is growing to a massive size, and the large options expiry, which is coming on December 25th, will make for an interesting week. Stay tuned.