Skip to content

Macro Markets, hosted by crypto analyst Marcel Pechmann, airs every Friday on the Cointelegraph Markets & Research YouTube channel and clarifies complex concepts, focusing on the cause and effect of traditional financial events on day-to-day crypto activity.

The latest Macro Markets show begins by exploring why the crypto market capitalization is 60% below its all-time high, while the S&P 500 is less than 15% off its peak. For Pechman, the sector suffers from a huge problem because it is not commoditized and it is not commoditized. Furthermore, not all mutual funds can hold crypto.

Lesson? If Bitcoin (BTC) and Ether (ETH) are viewed primarily as alternative risk assets, that is how they will trade. Therefore, one should not waste time looking for theories explaining why crypto has not been able to break new heights.

On the next topic, according to Pechman, NVidia’s $2.3 billion short sellers’ losses don’t paint the true picture. This is because the short seller can take the pain if they don’t close the loan, so as long as they have enough collateral, those losses are still open.

It’s similar to what a buyer who paid a much higher price for their crypto is experiencing. As long as this person does not trade, the damages are not specific. The difference is that the short seller has to find someone willing to lend those shares to keep the trade open.

A Bloomberg article noted that Nvidia is the fourth most shorted stock in the U.S. behind Apple, Tesla and Microsoft. According to Pechman, the four most shorted stocks also happen to be among the top 10 components of the S&P 500, which leads to a problem.

Finally, the show discusses China’s 5% growth disappointing investors and its implications for markets. The most important news for Pechman is China’s reluctance to issue new stimulus packages, which could be a strategy to further weaken the rest of the global economy.

A Bloomberg article shows how China is a major player in global commodities. If commodity prices and the global trade balance continue to weaken, that means less tax revenue for those other governments. Pechmann points out that Germany has just entered a technical recession, with the US close behind.

Pechman believes that the outcome of crypto is initially negative, as it drains liquidity from the markets, and investors will later reach for short-term government bonds and cash. But if the USD loses strength, it is positive for crypto in the medium term.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, be sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us every Friday at Macro Markets!