MARKETS week ahead: February 10 – 16
Last week in the news
The US jobs data posted on Friday increased investors' concerns over a potential increased inflation in the US in the coming period. The US equity markets reacted with a negative sentiment, pushing the S&P 500 0,95% to the lower grounds, where the index ended the week at the level of 6.025. The US Treasury yields also reacted to the potential increase in inflation by reaching for one more time levels of 4,5%. The price of gold continues its positive track for the six consecutive weeks, reaching a fresh new all time highest level at $2.860, still fearing trade tariffs imposed by the US Administration. The crypto market was quite volatile during the week, with BTC dropping down to the levels of 96K.
The main macro data released during the previous week were the ones related to the US jobs market. The non-farm payrolls reached 143K in January, which was lower from the market estimate of 170K. Still, the main concern related to inflation came from the unemployment rate of 4,0% in January, which was lower by 0,1 percentage point from December and from average hourly earnings which came at the level of 0,5% increase for the month, and higher from market estimate. Although all these figures are positive for the US economy, markets were not happy. Simply, by calculating that higher employment in combination with higher earnings will push the spending higher as well as inflation. In this scenario, the Fed will have no options to decrease interest rates, which will be held at current levels for a longer period of time. The S&P 500 ended Friday trading session by 0,95% lower, while US 10Y Treasury yields reached 4,5% on the data release.
The AI race continues among tech companies. As per published news, Meta, Amazon, Alphabet and Microsoft are planning to invest $320 billion into artificial intelligence only during this year. These funds will be used to build up large data centers and other AI related infrastructure, which will support further development of the AI segment in these companies. Not only big techs are in the race for AI. As per news, SoftBank will invest $ 40B, with 260B valuation, into Open AI. Part of these funds will be used to further support the Stargete, a partnership project with Oracle.
The new US Administration is evidently bringing back large companies back to the US. The latest one which announced its return of focus toward the US market is a beauty-company L`Oreal. The company was a bit disappointed with its sale on the China market, in which sense, defined the US “as the land of opportunity”, switching back their focus from China to the US market.
Crypto market cap
The start of the previous week was promising, however, the second part of the week was not so nice for the crypto market. The US jobs data was the one to heat inflation fears, in which sense, investors reacted in a negative manner. All crypto coins ended the week in red, with BTC leading the drop in the crypto market capitalization in nominal terms. This week, there was a huge drop in the value of the crypto market, where 260B or 8% of the market capitalization was erased. Daily trading volumes remained almost flat in relation to the week before, moving around $ 230B on a daily basis. Total crypto market cap increase from the end of the previous year entered into a negative territory, with an actual decrease of 4%, where $120 was withdrawn from this market.
There has been a significant drop in the value of the crypto market, where almost all coins lost in value. BTC, as the coin with the highest market cap, decreased its value by 4,6% on a weekly basis, decreasing its cap by 92B. ETH also suffered a loss during the week, with a drop in value of 16,5% or 63B. XRP recently reached an ATH, however, this week the coin dropped by 16,%%, decreasing its value by almost 28B. DOGE was one of the main coins which suffered a higher loss of 19% w/w or $8,8B. Cardano was also down by 22,6% w/w or $7,2B. Market-favorite Solana also suffered the loss of 8,9% or $9,3B. TRUMP coins continue to lose value, with an additional drop in price of 11,7%.
As per coins in circulation, there have been some interesting developments with Polygon. Namely, the number of Polygons coins on the market increased by an incredible 24% during the single week. There is still no information regarding the cause of such a high increase of circulating coins. As for other altcoins, there has been an increase of 0,5% of the number of circulating coins of IOTA, while Solana increased its coins by 0,2%. At the same time, Maker decreased the number of coins in circulation by 0,7% w/w.
Crypto futures market
The sentiment from the spot market was transferred to the futures market. As of the weekend the crypto futures market was traded significantly lower when compared to the week before. BTC futures were traded lower by some 6% for all maturities. The futures maturing in December this year closed the week at the level of $103.705, while those maturing a year later were last traded at $112.745. This was the highest correction of expectation for the two years since the beginning of this year.
ETH futures also experienced a significant drop on a weekly basis of more than 22% for all maturities. All futures prices dropped below 3K. In this sense, futures maturing in December this year dropped to the level of $2.764, and those maturing a year later were last traded at $2.970.
The US jobs data posted on Friday increased investors' concerns over a potential increased inflation in the US in the coming period. The US equity markets reacted with a negative sentiment, pushing the S&P 500 0,95% to the lower grounds, where the index ended the week at the level of 6.025. The US Treasury yields also reacted to the potential increase in inflation by reaching for one more time levels of 4,5%. The price of gold continues its positive track for the six consecutive weeks, reaching a fresh new all time highest level at $2.860, still fearing trade tariffs imposed by the US Administration. The crypto market was quite volatile during the week, with BTC dropping down to the levels of 96K.
The main macro data released during the previous week were the ones related to the US jobs market. The non-farm payrolls reached 143K in January, which was lower from the market estimate of 170K. Still, the main concern related to inflation came from the unemployment rate of 4,0% in January, which was lower by 0,1 percentage point from December and from average hourly earnings which came at the level of 0,5% increase for the month, and higher from market estimate. Although all these figures are positive for the US economy, markets were not happy. Simply, by calculating that higher employment in combination with higher earnings will push the spending higher as well as inflation. In this scenario, the Fed will have no options to decrease interest rates, which will be held at current levels for a longer period of time. The S&P 500 ended Friday trading session by 0,95% lower, while US 10Y Treasury yields reached 4,5% on the data release.
The AI race continues among tech companies. As per published news, Meta, Amazon, Alphabet and Microsoft are planning to invest $320 billion into artificial intelligence only during this year. These funds will be used to build up large data centers and other AI related infrastructure, which will support further development of the AI segment in these companies. Not only big techs are in the race for AI. As per news, SoftBank will invest $ 40B, with 260B valuation, into Open AI. Part of these funds will be used to further support the Stargete, a partnership project with Oracle.
The new US Administration is evidently bringing back large companies back to the US. The latest one which announced its return of focus toward the US market is a beauty-company L`Oreal. The company was a bit disappointed with its sale on the China market, in which sense, defined the US “as the land of opportunity”, switching back their focus from China to the US market.
Crypto market cap
The start of the previous week was promising, however, the second part of the week was not so nice for the crypto market. The US jobs data was the one to heat inflation fears, in which sense, investors reacted in a negative manner. All crypto coins ended the week in red, with BTC leading the drop in the crypto market capitalization in nominal terms. This week, there was a huge drop in the value of the crypto market, where 260B or 8% of the market capitalization was erased. Daily trading volumes remained almost flat in relation to the week before, moving around $ 230B on a daily basis. Total crypto market cap increase from the end of the previous year entered into a negative territory, with an actual decrease of 4%, where $120 was withdrawn from this market.
There has been a significant drop in the value of the crypto market, where almost all coins lost in value. BTC, as the coin with the highest market cap, decreased its value by 4,6% on a weekly basis, decreasing its cap by 92B. ETH also suffered a loss during the week, with a drop in value of 16,5% or 63B. XRP recently reached an ATH, however, this week the coin dropped by 16,%%, decreasing its value by almost 28B. DOGE was one of the main coins which suffered a higher loss of 19% w/w or $8,8B. Cardano was also down by 22,6% w/w or $7,2B. Market-favorite Solana also suffered the loss of 8,9% or $9,3B. TRUMP coins continue to lose value, with an additional drop in price of 11,7%.
As per coins in circulation, there have been some interesting developments with Polygon. Namely, the number of Polygons coins on the market increased by an incredible 24% during the single week. There is still no information regarding the cause of such a high increase of circulating coins. As for other altcoins, there has been an increase of 0,5% of the number of circulating coins of IOTA, while Solana increased its coins by 0,2%. At the same time, Maker decreased the number of coins in circulation by 0,7% w/w.
Crypto futures market
The sentiment from the spot market was transferred to the futures market. As of the weekend the crypto futures market was traded significantly lower when compared to the week before. BTC futures were traded lower by some 6% for all maturities. The futures maturing in December this year closed the week at the level of $103.705, while those maturing a year later were last traded at $112.745. This was the highest correction of expectation for the two years since the beginning of this year.
ETH futures also experienced a significant drop on a weekly basis of more than 22% for all maturities. All futures prices dropped below 3K. In this sense, futures maturing in December this year dropped to the level of $2.764, and those maturing a year later were last traded at $2.970.
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Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.