Macro factors moving crypto the macro trends that caused last week’s pump and the ones that could cause this week’s dump everything you need to know tesla sells its btc the famous electric car company off loads 75 percent of its btc holdings here’s why it’s sold and why other publicly traded companies could soon follow suit ethereum updates vitalik buterin lays out his vision of ethereum at the eth cc conference as the merge approaches here are the three cryptocurrencies that need to be on your radar xrp sales end ripple co-founder jed mccaleb finally finishes selling his initial allocation how much did he make and what does it mean for xrp sec versus cryptocurrency crypto’s most infamous regulator labels nine cryptocurrencies as securities as part of its investigation into insider trading at coinbase which cryptos are the sec targeting celsius in court after filing for bankruptcy the crypto platform begins the process of repaying its creditors when could users get their crypto back countries clamp down on crypto india’s central bank pushes for a crypto ban and the bank of central african states calls on its member countries to roll out cbdc’s is this the beginning of a bigger trend and a closer look at last week’s top performing cryptos and where they’re headed next all this and more in just a moment [Music] what you’re about to see is educational content not financial advice.
And now for today’s top stories last week we saw the crypto market rally by almost 20%. This begs the obvious question of what caused the rally and the easiest way to find the answer is to look at the stock market. As you can see the s&p 500 rallied along with crypto. This suggests that what moved the crypto market was a macro factor rather than a crypto specific one. As far as I can tell this small rally was caused by the news that the federal reserve will be raising interest rates by 75 basis points or 0.
75 percent during its next press conference later this week. For context some investors were expecting the fed to raise interest rates by a full one percent in response to the inflation figures for june which came in the previous week at 9. 1 percent. Much higher than many expected. As such the news that the fed confirmed that it will be raising interest rates by just 0.
75 at its upcoming press conference was welcomed by investors and the markets responded in kind. Another macro factor that seems to have moved the markets was the news that oil prices are on the decline at least in the united states. Given that this is where most investors are based it gave an extra boost to the markets. Now I must admit that I was expecting to see a crash last thursday. That’s because of the rumors that russia was going to keep the gas to europe turned off indefinitely and because the european central bank was announcing how much it will be raising interest rates by as europeans in the audience will know.
Russia resumed pumping gas and the ecb only raised rates by 50 basis points or 0. 5 percent bringing the european interest rate from minus 0. 5 percent to zero which didn’t really affect the market because a zero percent interest rate isn’t going to change much. Looking ahead the macro factors that investors are watching this week will be company earnings the fed’s press conference that I just mentioned and the gross domestic product or gdp figures for the united states for the second quarter of this year. If you know how low the crypto market could go you’ll know that crypto has a very high correlation with tech stocks and it looks like tech companies are starting to struggle.
In what may be a perfect storm for the crypto market microsoft, google, meta, apple and amazon will all be releasing their earnings for q2 this week and if these earnings come in below expectations the crypto market could take a huge hit. It’s a similar story with the fed’s press conference which will take place this wednesday. If the fed suddenly decides to raise rates by one percent rather than the 0. 75 percent it recently confirmed the crypto market could crash. Finally there’s the gdp figures which will be released on thursday.
If gdp comes in negative then it will confirm that the us economy is in a recession. Now it’s not clear how the crypto market could respond to this as a recession could see the fed reverse course on interest rates depending on its severity. .
Categories: analysis crypto news
