Week 7 of 2023 - An overview
On Wednesday, the CPI data came in a little hot (+0.2 higher than expected) but surprisingly this didn't seem to negatively impact the markets as much as previous CPI increases did. In fact, BTC responded with a 10% increase.
There has been a lot of FUD around and despite this, the latter half of the week saw some alts rocket even higher. Notably in the top 10 (excluding Stablecoins) we've seen Polkadot's DOT +16% and Polygon's MATIC +18% on the weekly timeframe.
Narratives
In Crypto, narratives fuel a lot of hype and often rapid increases in price (and often the subsequent dump).
A few to keep an eye on are the continuation of the AI Hype, Regenerative Finance (ReFi) and zero-knowledge rollups or zk-rollups. There is also a growing interest from the Chinese markets and the so-called 'Chinese Coins'. I'll look to cover these in more depth in a future article.
SEC News
FUD increases as US regulators crack down and various stablecoins and continue their regulation approach by enforcement rather than clarity. Strangely they have been targeting BUSD issuer, Paxos claiming the tokens are securities. Under the Howey test, there has to be an expectation of profit. Anyone purchasing a stable coin clearly wouldn't expect profit. So this seems very off.However, despite a lot of hate that the SEC receives from the Crytpo space, it is pleasing to see the SEC going after certain celebrities who promote, yet don't disclose their affiliation, with specific projects. Earlier this week they announced they have charged former NBA player Paul Pierce for misleading paid promotion.
What to expect next week?
My expectations for next week are for a slight cool-off. Fear and Greed index (read our guide to understanding the Fear and Greed Index) has entered Greed a few times recently and bearish macro factors still exist. However, with a non-trading day in the US equities market on Monday, we could be in for some surprises.About
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