BTC books a 5% weekly gain, ending a six-week streak of consistent negative returns as prices, volumes and ETP flows stabilize. We expect this week's FOMC to revitalize volatility.
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Some consolidation, but risk-off sentiment remains
A reversal following the tail-end of last week’s wipeout has seen BTC book a 5% weekly gain. ETH continues underperforming as ETHBTC remains at lows not seen since December 2020 with ETHUSD hovering around $1,900. Macro and global uncertainties reinforce risk-off sentiment for both traditional and crypto markets. Gold continues its impressive performance as a safe haven asset in this environment, while BTC remains uncorrelated to gold with 90-day correlations at -0.034. Wednesday’s FOMC meeting likely brings volatility to a relatively docile market as traders digest the dot plot and forward guidance.
Recession fears spark sharp de-risking, pushing NDQ and SPX to September levels while BTC approaches pre-election levels. We see a disconnect between the fundamentally bullish SBR announcement and the recent sell-off, favoring accumulation ahead. lg...more