Morning Update: Tue 23rd May
Have we seen the lows on NFTs?
The information in this message does not represent any financial or investment advice. They're just random thoughts in my head.
gm
MACRO - Equities closed slightly in the green yesterday with the SPX unchanged but NDQ up 0.3%. We are opening pretty much bang on unchanged today. Interest rates continue to surge higher rather aggressively, we're now at 439/382/375/398bps across 2/5/10/30y. To add some context, that's the highest we've been on 2Y rates since the steep decline we saw back in March as inflation came lower in conjunction with the regional banking stress rising. There continues to be concern on the US debt ceiling with a deal not being reached on Monday as perhaps expected. The funny thing about it is we see bond yields moving higher but equities don't really seem to be budging that much. Curious to see what happens if/when a deal is finally struck there.
CRYPTO - Finally a bit of strength after a period of flat pricing; BTC at 27.3K and ETH at 1855 mark 4-5% moves in the last 24H. Altcoins are also seeing a bounce alongside with 5-10% moves across the board. It's been a long period of what felt like consolidation here so it's nice to see a bit of a price rally (especially amid a big rise in interest rates) and hopefully we see this move higher hold. It's interesting to see the shitcoin market kind of get left behind with many coins there down 30-70% in the last couple of weeks and not really experience a bounce today. I think this is where we find out if any of those coins will have longevity or not, if they can participate in a broader crypto rally or just fall off the edge.
NFTs - OK well I finally feel like I have a lot more I can write about now on NFTs! While it was still a low volume day (just 34m) we did see some good activity in the market overall. This was led by a rally in generative art which saw Fidenzas rise by a whopping 60% to an FP of 86.5 ETH, while Ringers, Squiggles, Friendship bracelets and others participated in the rally. So we've seen some more price action to suggest that, as I speculated, this 3AC liquidation could indeed have been a bottom event for NFTs. I think it's still too early to tell and we saw a knee-jerk move higher in some things, I'm on the fence as to whether they'll hold or not but we'll see. We also saw another hoodie punk sale but for now I feel like focus will be a bit on gen art and we can hope it results in a more market wide rally. We're not out the woods but it's a nice change of tune after what's been a very difficult period for NFTs. Congrats to everyone who's stuck around.
GL!
