Fundamentals and expected events: week 21
Crypto markets: Fear has returned to the crypto markets as the Fear and Greed index dropped down to level 10, meaning extreme fear. The crypto-ecosystem as a whole has taken a dive following not only the macroeconomic data and also an upcoming correction on from the “free money” era of COVID spending but also due to the TerraUSD and Luna series of events, beginning on May 8th, when these stable coins lost their stability. However today it seems that Bitcoin finally initiated an impressive leg up and jumped above $30,000. Most altcoins are also well in the green.
Stock and commodity markets: The broader traditional financial system was also under pressure. The prestigious DJIA index has failed to improve for eight weeks in a row, something it hasn’t seen since 1923. The broader S&P 500 index is experiencing a situation not seen since 2001, in fact since the dot-com bubble burst. Indeed, the index has fallen for the seventh week in a row, something it has only seen twice since 1980. Moreover, during Friday’s session, it had already begun to enter a bear market, falling by more than 20% from its highs. By the end of last week, the US dollar posted its first decline in 7 weeks.
Fundaments and important events: World Economic Forum (WEF) will be the main event this week, apart from Wednesday’s minutes from the last Fed meeting (FOMC minutes). WEF will take place in Switzerland after covid break and comments from leading businessmen, politicians and central bankers on the economic outlook and, consequently, on interest rates are expected. There will also be continued macro data and a few more interesting companies reporting earnings this week, again mainly from the retail sector.
Tip: Stagflation – what it is and how to protect your assets
Cryptomarkets and marketcap: week 21
BTC / USD

ETH / USD

Disclaimer: This is not an offer for concluding a contract. Trading cryptocurrencies is a highly risky business and as such you are the only person bearing the risk and responsible for your own decisions. Do not engage in trading unless you do your own research and are fully knowledgeable of the risks.