🟡 The past week turned out to be ambiguous for the cryptocurrency market.
Applications for registration of spot Ethereum-ETFs from Ark Invest/21Shares and VanEck on Form 19b-4 were filed. Also, JPMorgan is developing a blockchain-based deposit token for international payments. It would seem that this should have brought optimism to the crypto market. But it didn’t. Cryptocurrencies started their growth, but the strength of buyers was exhausted rather quickly and quotes went down. There were liquidated long positions for $23.57 million in 6 hours. In the end, the week ended flat -0.6%. The crypto market capitalization is still above $1 trillion and volatility is at extremely low levels.
🔴 It was a bad week for the stock market. After reports of restrictions on the use of iPhones by employees of central government, local government, and state-owned companies in China, U.S. stock indices slid noticeably. The S&P 500 and Nasdaq fell about 1.5%. The share of the five largest US companies in the S&P 500 index rose to a historically high 24%. The entire market is now dependent on a small group of technology companies that are actively developing artificial intelligence. Also not adding to the positivity is the fact that relative to treasuries, U.S. stocks have become overbought, reaching levels similar to the dot-com bubble in the late 1990s.
🟡 The start of the month, so far, confirms the trend towards a stronger US dollar and a fall in the price of high-risk assets. Increased volatility and high volumes should be expected in late September and early October. The current period will be suitable for medium-term traders to accumulate positions.
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