Fundamentals and expected events: week 28
Crypto markets:Bitcoin broke below the psychological threshold of 20 000 USD again. Bitcoin’s downward trend has taken smaller cryptocurrencies with it. Ethereum is now approaching the $1,000 level. The declines are due to weak sentiment in the stock markets. The drop in investor sentiment is due to negative perceptions of “riskier” assets ahead of the next quarterly earnings season. The disastrous first half of this year signals a possible further deterioration for investors. Cryptocurrencies have proven in the past to be a harbinger of stock market movements in the face of high volatility. Some bulls believe that if the results from Wall Street surprise positively, it will kick-start cryptocurrencies to reverse the trend. Poor performance and panic may push the price of the “crypto king” to the $13,000 level.
Stock and commodity markets: Stock markets around the world have been losing for several days. So far, the declines have been felt mainly by investors. However, economists are easing fears of another crisis. Stocks are being dragged down mainly by industry and banks, which are worried about an economic recession. Fears about the future development of the economies, the impact of the geopolitical situation and the coming winter are reflected in the declines of the main stock exchanges.The global macroeconomic situation is crucial for the oil market.
Fundaments and important events:The euro weakened against the dollar for the first time in almost twenty years to the so-called parity, i.e. to an exchange rate of 1:1. The world’s two major reserve currencies last reached parity during trading on 5 December 2002, and from then until now the euro has always been stronger than the dollar. The U.S. Consumer Price Index for June rose to 9.1% y/y, according to the Bureau of Labor Statistics, versus the market’s expected shift to 8.8% from May’s 8.6%. June’s rate of increase is the highest since December 1981. European Union policymakers have struck a deal on landmark legislation to regulate crypto assets and service providers with the newly approved Markets in Crypto Assets (MiCA) framework.
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Cryptomarkets and marketcap: week 28
BTC / USD
ETH / USD
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