Ether was recently changing hands over its most recent support of $1,300, a more than 2% increase from the previous day. Most other major cryptos were largely in the green, with DOT and BSV recently up more than 6% and 5%, respectively.
Equity markets, from which crypto prices have drawn their lead for much of the year, closed lower, with the Dow Jones Industrial Average (DJIA) and S&P 500 both falling over a percentage point and the tech-heavy Nasdaq dropping 0.6%. The declines came amid investors’ heightened recessionary fears that took root following a wave of hawkish interest rate hikes and economic data pointing firmly downward. The DJIA tumbled into bear market territory, meaning it has declined at least 20% from its previous peak.
On Monday, yields for two-year U.S. Treasurys soared to 4.3%, reaching levels last seen in August 2007. Ten-year notes topped 3.9%, their highest mark since 2010. An inverted yield curve suggests that investors are placing a higher degree of risk on short-term than longer-term lending, and historically has foreshadowed recessions that affect all risk assets. Cryptocurrencies typically move in the opposite direction of yields.
Earlier in the day, markets were further roiled when the British pound fell to a historic low against the U.S. dollar before rallying. The drop occurred after the British government introduced its largest tax cuts in a half century to spur economic growth, but raising fresh inflation concerns.
Crypto news offered a mix of events, negative, neutral and positive. The search for Do Kwon intensified following Interpol’s Red Notice asking law enforcement agencies worldwide to find and arrest the Terraform Labs co-founder, pending extradition, surrender or similar legal action.
Despite the ongoing, macroeconomic turbulence, Jeff Dorman, chief investment officer at crypto fund manager Arca, took issue with “the convenient narrative” that ties “digital assets’ fates to macro.” In his Two Satoshis newsletter, Dorman wrote that the correlation was “short-lived” and applied only to bitcoin and “a few other bellwether cryptocurrencies.”
“The future success or failure of digital asset investments will be more closely tied to user and app growth than to dot plots,” he wrote, adding: “But with the Ethereum Merge in the rear-view mirror and the Federal Reserve stranglehold transparently and clearly stated, what will be the next catalyst to drive digital asset prices? To answer that, we must acknowledge how bad the data is and compare it to data points suggesting trends may reverse soon.”
Hotel prices are up nearly 70% from last year with the highest prices per night in a decade as visitors flock back to a Singapore free of COVID-19 restrictions. The event, which features developers and executives from leading Web3 and other blockchain-related companies, underscores not only the global return to normality but also Singapore’s resurgence as a crypto hub and business hub. It also highlights the different roads that Singapore and its perennial rival, Hong Kong, which is playing catch-up, have been traveling.
Besides, anyone from overseas who wants to go to Hong Kong’s Fintech Week needs to arrive three days early as the current rules say no “maskless or group activities” (including restaurants and bars) for 72 hours. And there’s a required PCR test at the airport, and three more spread out during the first week.
This content was originally published here.
