In this week’s newsletter:
- The relative sturdiness in the largest crypto comes despite a brutal day for U.S. stocks on Wednesday, with a selloff that was continuing into Thursday.
- Traditional risk assets underperform crypto in the short term.
- Major crypto assets consolidate amid broader equity market decline.
Read our weekly round up below.
Market Updates by Robert Lynch | Head of Research and Strategy
Market Update: Cautious Consolidation in Major Crypto Assets; Regulators Increase Crypto Focus
Robert Lynch – ALT 5 Sigma | May 20, 2022
As the market focus has evolved from high inflation, to central bank tightening and most recently to recession risks, the backdrop for financial markets, including crypto tokens, remains challenging. That is evident in the continued decline in risk assets such as the Nasdaq Composite Index, and new lower trading range in bitcoin and ether, which remain highly correlated to the Nasdaq.
ALT 5 – Digital Assets Morning Call
Robert Lynch – ALT 5 Sigma | May 16-19, 2022
The Digital Assets Morning Call is a new segment by Robert Lynch, the Head of Research and Strategy at ALT 5 Sigma. This is a brief rundown of the latest developments impacting digital assets through a macro lens.
Crypto News From Around The World
Bitcoin Is Steady Above $29,000. Cryptos Are Holding Up as Stocks Sell Off.
Barron’s | May 19, 2022
Bitcoin and other cryptocurrencies are, in theory, supposed to trade independently of mainstream financial markets. In practice, a tight correlation with stocks—and especially tech stocks—has weighed on digital assets. But not as much as it might. The Dow Jones Industrial Average lost 3.6% and the S&P 500 plunged 4% on Wednesday as the indexes notched their ugliest performances since June 2020.
Julius Baer Braves ‘Bubble-Burst’ Moment in Crypto Wealth Push
Bloomberg | May 19, 2022
Julius Baer Group Ltd. said it is working on offering services in digital assets to its wealthy clients, and sees the current turmoil in global crypto markets as potentially defining moment for the asset class. The Zurich-based private bank wants to place itself at the intersection of “digital assets and the fiat world”, according to a statement on the bank’s updated strategy on Thursday.
This Week in Crypto: Market Shows Revival Signs
TipRanks | May 19, 2022
While most tokens have gained some value in the past seven sessions, investor sentiment still lingers around the “extreme fear” territory, indicating that the ongoing bearish phase is far from over. After plunging to lows of $25,000 over the past couple of weeks, Bitcoin (BTC) is stabilizing near the crucial support level of $30,000.
Bitcoin, Ethereum Technical Analysis: BTC Back Above $30,000 as Week Long Consolidation Continues
Bitcoin.com | May 20, 2022
Bitcoin was trading higher on Friday, as price uncertainty in crypto markets continued to grip traders, leading mainly to consolidation. Following a decline to a low of $29,389.44 during Thursday’s session, BTC/USD rose by over 3% on Friday, hitting a high of 30,664.98 in the process. The move comes as a floor in prices may have finally been found, as bulls lifted BTC from the $28,800 point, which many now consider to be the current support.
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