The information in this message does not represent any financial or investment advice. They're just random thoughts in my head.
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MACRO - Stocks finally gave a bit of way on Friday closing marginally lower, 0.4% and 0.7% lower. Futures are opening pretty much unchanged this morning while interest rates have sold off but continue to be rangebound, the curve sits at 472/399/377/386bps across 2/5/10/30y. Although there's not a lot of data and things feel quiet again for the next couple of weeks, I think it's important to understand whats' going on outside of the US just for context. Something worth noting is that 2y mortgage rates in the UK have risen above 6% for the first time since 2008. Inflation in the UK has been much stickier, granted it feels like we're a bit earlier int he cycle than the US, and thus we expect to see further rate hikes by the Bank of England. I often paint a rosy picture of the inflation dynamic and its trajectory, but it is worth noting that there is a growing and concerning cost of living crisis in many parts of the world right now.
CRYPTO - Well, as I thought we did get a bit of a short squeeze on Friday and into the weekend which now sees BTC at 26.4K and ETH at 1722 (sadly I sold my ETH at 1695 and now I am going to not do any leveraged trades for a while so I don't get addicted). Interestingly and not surprisingly alts don't really seem to have followed that move which has resulted in Bitcoin dominance rising ever so slightly to 49.72% and flirting with that 50% mark. Maybe some of the strength has come on news that Blackrock has applied for a Bitcoin ETF which personally I think is underpriced here. Blackrock is the largest asset manager in the world, I think that's a pretty important step to mass and institutional adoption.
NFTs - Just under $30m of marketplace volumes and I think we're all scratching our head on "what's next" after the big sales last week. There's been some interesting shenanigcans on BAYC where a mysterious wallet has been ploughing in thousands of ETH in buying BAYC and $APE and then max staking. You can view more info in this thread here:
https://twitter.com/CirrusNFT/status/1668286102279708680?s=20
At first I thought it was just another dumb Blur farmer, and maybe it is, but this person has ramped up pretty aggressively in a short timeframe of about 1-2 weeks and it makes you wonder if it's someone making a smart play or just a total degen. It's not a bad entry point with $APE at all-time-lows but I think the sentiment there is pretty bleak. There's also a separate wallet who has been constructing an effective leveraged long on Apes too:
https://twitter.com/CirrusNFT/status/1670628294650396674?s=20
-- it's looking rather precarious once again given the amount of leverage in the system here.
Degenz - We published 6 new reports last week on Famous Fox Fed, Kubz, VIA by Louis Vuitton, Luppy, Matt Desl and Nullish be sure to check them out on https://degenz.finance/reports
GL this week!