The Weekly Debrief 03



Market Overview




Traditional & Crypto Market Overview


  • Comments from multiple US Federal Reserve officials this past week injected further volatility into traditional markets as investors attempt to predict the US Central Bank's next move to curb elevated inflation

  • On Monday, Atlanta Fed President Bostic was on the tape saying that he was in favour of the committee raising interest rates by 50bps two to three more times, whereas President Kashkari remarked that he is confident in the committee’s abilities to deal with inflation. On Tuesday, Cleveland Fed President Mester relayed support for 50bps rate hikes, but would support larger ones if needed

  • Following these comments, all eyes were laser focused on Wednesday’s US inflation data (8.3% vs 8.1 expected) and Thursday’s US PPI (11.0% vs 10.7% expected) readings, which showed that the Fed has a lot of wood to chop if it wishes to get inflation under control

  • On the digital asset side, markets saw some USD200 billion of total market capitalization evaporate between Wednesday and Thursday, while market leaders Bitcoin and Ethereum crashed to lows not seen since 2020

  • All eyes were on Terra’s leading cryptocurrency LUNA — the prior week one of the top 10 in the world – which fell to zero. LUNA posted an all-time high of USD118.19 only last month, and is now trading for a fraction of a penny. This was all driven by driven by the collapse of Terra’s other leading coin, the USD-pegged stable coin UST, which bottomed out at 13 cents on Friday, prompting US Treasury Secretary Janet Yellen to highlight Terra’s collapse as an example of why stable coins need to be imminently regulated

  • This past week marks the now sixth consecutive week of market decline as virtually every top 100 cryptocurrency by market capitalization ended the week down by double-digit percentages

  • Besides that, Instagram announced that it is testing NFT connectivity with a handful of U.S.-based collectors and creators. The pilot allows testers to link crypto wallets to their accounts and display verified collectibles. Moreover, VC and fundraising deal flow remained robust during this past week (as can be seen in the following table)



VC and Fundraising Deal Flow

Source: CRT Labs

Market and Performance Overview


Fear and Greed Index


Upcoming Key Calendar

Source: CRTLabs, Bloomberg, CoinShares as of 16 May 2022

https://alternative.me/crypto/fear-and-greed-index/


Disclaimer


NOT FINANCIAL ADVICE


The information contained in this weekly debrief and the resources available for download through the CRT Labs website is not intended as, and shall not be understood or construed as, financial advice. CRT Labs is not an attorney, accountant or financial advisor, nor a we holding ourselves to be, and the information contained in this weekly debrief is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided in this weekly debrief and the resources available for download are accurate and provide valuable information. Regardless of anything to the contrary, nothing available on or through this weekly debrief should be understood as a recommendation that you should not consult with a financial professional to address your particular information. CRT Labs expressly recommend that you seek advice from a professional. Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, and information that you find in this weekly debrief and wish to rely upon, whether for the purpose of making an investment decision or otherwise.