Q2 Market Update 🚀
Momentum Builds: Bitcoin Breaks Through, Eyes on Global Liquidity
Volatility persisted into the second quarter, with market movements reflecting both uncertainty and opportunity. US equities held steady, though they faced ongoing inflationary pressures that kept investors cautious. The anticipated rate drops didn’t materialize, but we may still see easing in the months ahead as inflation shows signs of moderating.
In the crypto space, Bitcoin continued to build momentum post-halving, breaking through key resistance levels. This pattern, consistent with previous halving events, suggests we’re entering a phase where broader market participation could drive a sustained rally. Ethereum also remains in the spotlight, particularly with the ongoing discussions around ETH ETFs and the growing trend of Real World Asset (RWA) tokenization.
On the global stage, China stood out with its aggressive liquidity withdrawal to support the yuan. This move, while necessary for China, could have broader implications for global liquidity and market stability. In contrast, other major economies have maintained a more balanced approach, helping to stabilize broader market conditions.
US Treasury yields have been closely watched, with the yield curve nearing critical support levels. The Fed’s buyback operations signal a potential shift in monetary policy that could influence market dynamics as we move into the second half of the year.
Overall, macro factors continue to favor risk assets, particularly in the crypto and equity markets. As always, it will be important to monitor developments in global liquidity and regulatory shifts, which could shape the trajectory of the markets in the coming months.
My top investment ideas are Bitcoin, Ethereum, Chainlink, and Solana.
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To the moon and beyond,
Andrew
Disclaimer
The content of this letter is for informational and entertainment purposes, and should not be construed as personal investment advice.