Market deep dive: macro environment continues to dominate crypto market

The week is coming to a close, but with hardly any news driving the crypto market. Once again, this week, we were driven by the back and forth in the traditional markets.

The macro environment has dominated. How much will the Fed raise interest rates? Will Russia invade the Ukraine?

These two questions have dominated the market. The crypto market can hardly escape these concerns, either, and the correlation in the short term between traditional markets and crypto is as high as it has rarely been before.

BTC$ is moving in the range of USD 40,000 and 45,000. I think that with this back and forth until the FOMC meeting, there will be little room for it to go up or down. This year’s market is much harder to play than 2021, but also more interesting!

Especially relative value or pair trading strategies perform extremely well and are stable in this market environment. However, not every market participant can (and wants to) play them to the same extent.

From the flow side, we saw a great deal of interest in the altcoin sector this week. In particular, we saw interest in tokens with staking capacities. I think that in the future tokens with staking capacities (especially with rising interest rates) could be very interesting investments, because they not only have a growth potential, but also a fixed income characteristic.

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