Digital Assets

Hubbis Partners with Independent Reserve to Bring You Weekly Crypto News and Market Trends - From Meme Coin Mania to Macroeconomic Movements

Amidst the meme coin frenzy, this week's attention is turning to macroeconomic factors. Cryptocurrencies, traditionally independent of broader economic trends, now appear more influenced by factors like ETF flows and supply dynamics.

While ETF inflows have been strong, there's concern that any downturn could disrupt the current euphoria. Rapid asset price escalation amplifies sensitivity to all data points, potentially signalling a pivotal moment for BTC.

The FOMC meeting this week takes centre stage in the macroeconomic landscape. US 10-year treasury yields have shifted to around 3.80% in the past year, driven by strong labour markets and persistent inflation. Recent economic indicators, like the Producer Price Index MoM and US inflation YoY, suggest upward pressure on inflation. Market attention is now on the FOMC's interest rate decision and rate projections, particularly the 1-year and 2-year projections. Any upward revision could signal a more cautious FOMC stance and impact borrowing costs in asset markets. Watch this space closely for updates.

On the OTC desk, the altcoin season is gaining momentum, marked by a notable shift from layer 1 tokens to lesser-known assets. These long-tail assets, with their low market caps, high price volatility, and the potential for substantial price swings, are capturing the market's attention. The OTC market is growing more comfortable with its current position in the cycle, with a sense that we're midway through but haven't reached the stage of retail euphoria yet. This week, SOL meme coins have outperformed BTC and ETH, sparking considerable speculation within the Solana ecosystem.

Read this week's full market update here.