“Most books about the future are really books about the present.” – James Dale Davidson ||
Hello everyone! You’re reading the daily premium Crypto is Macro Now newsletter, where I look at the growing overlap between the crypto and macro landscapes. There’s also usually some market commentary, but nothing I say is investment advice!
If you’re not a subscriber, I do hope you’ll consider becoming one! It would help enable me to continue to share what I learn as I work on figuring out where we’re going. It’s only $8/month for now, with a free trial.
And if you find this newsletter useful, would you mind hitting the ❤ button at the bottom? I’m told it boosts the distribution algorithm.
Also, I’m now host of the CoinDesk Markets Daily podcast – you can check that out here.
IN THIS NEWSLETTER:
Markets breathe easier
Bitcoin’s asymmetric downside
The real impact of the PayPal stablecoin
Stock market concentration
Trump for Speaker, are you kidding?
WHAT I’M WATCHING:
Breathing easier
After the noise of the first couple of days of this week, yesterday was a relative oasis of calm. Yields retreated, shares recovered, the oil price fell. BTC drifted up, ETH drifted down. All quite normal. And yet…
Take a look at that oil price drop. The Brent crude benchmark fell 5.6% during the trading day, its largest one-day drop in over a year.
(chart via TradingView)
Why it matters:
What triggered the market’s change of heart?
There’s some trading-related moves in there, with speculative froth deflating and some leveraged positions being unwound. But overall, it seems that concerns about global economic growth are suppressing fears of a supply shortage. In part, this is self-fulfilling – the higher the price of oil, the more consumers seek alternatives or reduce activity. You might have heard the saying: “The best cure for a high oil price is a high oil price.”
Keep reading with a 7-day free trial
Subscribe to Crypto is Macro Now to keep reading this post and get 7 days of free access to the full post archives.