As US Bond Market’s Yield curve inversion continues to point at an H2 recession, globally, investors seem to be turning increasingly “risk off”, building cash and short-term US treasury positions.
Although a pleasant surprise came from Chinese manufacturing data yesterday, the global economic recovery is still not out of the woods. Crypto markets traded sideways with a downward bias while still having an M.Cap a little higher than $1 trillion, Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch, said in an analysis shared with News First Line.
Heavy selling in ETH competitors was witnessed, as major Layer 1 protocol tokens witnessed a sharp correction, ADA down 13%, SOL down 12%, DOT down 16%, ATOM down 14%, and AVAX down 18%. SOL, in particular, was again in focus after the Solana blockchain witnessed yet another outage.
Even the recent pump in Polygon’s MATIC token came under heavy selling pressure, correcting by ~15%. The other narrative that has started losing steam and witnessed a sharp correction was the “Chinese Coins” or tokens/protocols with heavy China dominance in terms of developers and projects.
The true outlier, in last week’s sea of “red” prices, continued to be Stacks’ STX with a surge in its prices, as the Ordinal NFTs on the Bitcoin network continue to gain traction.
Big crypto-specific development to watch out for is the unfolding of events at Silvergate, as the crypto-friendly bank failed to file its annual report to the SEC, and its stock has come under heavy selling pressure. Markets are watching with bated breath to see if there’s another domino left to fall post the FTX fiasco.
Closer home, CRE8, an Indian Rupee denominated Virtual Digital Asset (crypto) index was down 4% in the past 7 days. The Index value stood at ₹2,942.88 at 8 AM, March 03, 2022.
