|
BTC |
ETH |
Weekly High |
$29,874 | $1,883 |
Weekly Low |
$28,811 | $1,820 |
The US dollar has hit a temporary low and is gradually recovering, which is hurting risk assets. During the last 3 pre-halving years, $BTC tested the lows in Aug/Sep and it seemed to be following its typical cycle pattern. The third LTC halving, which reduced the current 12.5 LTC subsidy to 6.25 LTC, was a ‘sell-the-news’ event and $LTC dropped 12.1% this week. Several Curve pools were exploited and $CRV hit its YTD support zone of $0.5. $USDC’s market cap was down over 40% since the beginning of the year and at a 2-year low.
BTC and ETH have been decoupling from external events, including traditional factors such as the US dollar and equity markets. This can be learned from their low long-term volatility despite recent major events like the hacking of Curve. BTC and ETH seem to be more focused on idiosyncratic aspects like regulatory risks and rulings. However, the options market suggests an optimistic outlook for a big price rise, especially in BTC, by year-end. The change in skew implied a shift in sentiment away from bullish expectations at least in the short-term.
The major indexes closed the first week of August lower with an unexpected downgrade of the U.S. government’s credit rating: the DJIA ended -1.17%, the S&P 500 -2.3%, and the NASDAQ -2.8%. The 10-year Treasury yield rose to a fresh high of 4.2% for the year, after Fitch downgraded the U.S. debt rating from AAA to AA+ on Tuesday.
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Amber Group
Amber Group
Amber Group
Amber Group