In today’s briefing:
- USD Watch: Markets Vastly Underestimate the Impact on USD Funding from the Debt Ceiling
- Market Makers Continue to Reduce Liquidity
- The Silver euphoria is over // Why crude oil continues to fall
USD Watch: Markets Vastly Underestimate the Impact on USD Funding from the Debt Ceiling
- The USD debt ceiling is a returning topic and it’s typically not overly important for markets, but this time is likely to be different.
- He repercussions for USD funding markets may be material and in sharp contrast to consensus expectations the USD may stage the biggest comeback since Lazarus.
- In this piece we elaborate why you should expect volatility in USD funding rates in coming weeks
Market Makers Continue to Reduce Liquidity
- Last week, some of the biggest market makers in crypto, Jane Street and Jump Crypto, announced they were winding down some of their crypto exposure, particularly in the U.S due to regulatory uncertainty.
- This move should have major implications for liquidity in the industry which has already lost several big players over the last year.
- Interestingly, market depth for BTC has barely shifted since the announcement or over the past month, remaining at depressed levels.
The Silver euphoria is over // Why crude oil continues to fall
- The Silver euphoria is over In the past two weeks, I have spoken to many people who are euphoric about silver.
- Many charts on Fintwit also predict that now is the time to jump back on the silver bandwagon.
- I believe that the next bubble could soon run out of steam, and this is not only true for gold.
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