“Everyone has a plan 'till they get punched in the mouth.” – Mike Tyson ||
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Today’s email is shorter than usual since I have a schedule squeeze, but I doubt anyone will mind getting some time back! Tuesday’s daily will do some catching up.
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Programming note: This newsletter will not publish on Monday, May 1, for Labour Day (I’m not quite sure why we celebrate working by not working, but I’m not complaining!). 🌻
WHAT I’M WATCHING
Stagflation. Yesterday’s data leaves no doubt that it’s now firmly entrenched. This is not good, but bitcoin should benefit. More on this below.
Signs of weekend drama. Actually, there aren’t any, which is interesting. More on this below.
Solid crypto ecosystem growth. I don’t have concrete data just yet, but crypto venture investments and institutional-grade service building sure seem to be picking up very nicely. We know that they didn’t stop even during last year’s drama, but the headlines this month have a jauntier tone and are flashing higher numbers. One area I’m seeing a notable amount of activity in is crypto custody. More on this below.
Hong Kong. The Hong Kong Monetary Authority issued a circular yesterday urging banks to support regulated digital asset businesses with their banking needs, and encouraging lenders to train staff about crypto assets. This is not new – we had already heard that banks in the region were being encouraged to work with crypto firms – but the additional detail and the reaffirmation ring loud in the current environment.
MARKETS
The worst of both economic worlds
We are so in stagflation territory now. ☹ Yesterday’s preliminary reading of US Q1 GDP came in at 1.1%, much lower than expectations of 2.0%, which were already lower than Q4’s 2.6%. Bear in mind this is before the banking crisis-induced credit crunch. Nothing to celebrate here.
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