Macro Headwinds

Chart of the Day

The equities markets and the crypto market are a sea of red today. After plunging by more than 7% overnight, BTC's gains over the weekend that briefly put it above the $50k level were completely eradicated, and the number one cryptocurrency by market cap is now trading just around the $47k level. Yesterday's dip constitutes BTC's largest daily percentage drop since the flash crash of Dec. 4, 2021, and may see BTC revisit the swing low at the $42k level. BTC isn't the only one contributing to this sea of red. Despite its reputation for being able to withstand macro headwinds much better than BTC can, ETH also fell sharply overnight by around 5% (even 10% at some point), and is currently trading at the $3,700 level. Other altcoins — including those that have been consistently performing really well throughout this year like SOL and AVAX — were not spared. At the time of writing, SOL was down by more than 7% whilst AVAX was down by around 10%.

This pullback in both the equities and crypto markets is largely down to investor sentiments surrounding the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday, where the Fed will likely be announcing if they are going to be ending their easy-money policies earlier than expected. However, not all is doom and gloom in the crypto market. In spite of ETH's price correction, many retail investors are still actively amassing ETH in small amounts. As can be observed from the chart, the number of ETH addresses holding less than or equal to 0.01 ETH has been steadily and consistently increasing through all the recent price dips, even hitting an all-time high level on Dec. 4, 2021, the day that ETH's price fell to the $3,500 level.