2022 05 15 YOLO Markets Weekly Recap

  1. Nomura Starts Trading Crypto Derivatives, Joining Rivals Goldman, JPMorgan

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nerdzvest Insight

Expect relief rally across markets after weeks of decline

The crypto space witnessed a historical shock this week. LUNA and UST collapse took the crypto world by surprise as no one expected a top 10 market cap tokens to collapse within a single day. The Nerdz truly sympathizes with the holders and will like to use this opportunity to remind everyone that all investments carry risk. Thus, it is always important to identify the potential risk of an investment proposition and not get blinded by “promised” upside gains. Hopefully, this dark days in the crypto space will not destroy the trust and overshadow the good works of many in the Web 3.0 community.

Meanwhile, the markets continue its decline especially after the release of April CPI numbers. However, we did see a reversal on Friday and The Nerdz reckons that this could be the sign of a relief rally due to come next week after weeks of decline. This could bring about short term opportunities but The Nerdz will caution that we are likely to be facing more headwinds and could see further downside after a relief rally.

Market Updates

Market decline continued with signs of relief rally on Friday

Similar to the previous weeks, market continues its decline amidst inflation and recession fears. This is especially so when April CPI reported numbers remain relatively high at 8.3%. Hence, the market showed signs of caution as equities markets dropped while bonds prices rose, signifying potential flight to safety. The crypto market also dipped and witnessed a huge shock in the LUNA and UST collapse which brought about great fear to the crypto holders. The week ended in a slightly positive note as Friday saw a significant bounce across equities markets after many weeks of decline.

Key Happenings

India’s ban on wheat export likely to worsen the issue of rising global prices

India banned wheat exports as a scorching heatwave curtailed output and local prices hit an all-time high amid strong export demand. Global buyers were banking on the world’s second-biggest wheat producer for supplies after exports from the Black Sea region plunged following Russia’s invasion of Ukraine in late February. The Indian ban is likely to drive up global prices to new peaks and hit poor consumers in Asia and Africa.


Powell reaffirmed his stance on curbing inflation despite potential economic pain

Federal Reserve Chairman Jerome Powell indicated that getting inflation under control remained his top priority but could not promise a soft landing for the economy. He noted that with a tight labor market pushing up wages, avoiding a recession that often follows aggressive policy tightening will be a challenge.


UST and LUNA collapses cause concern

TerraUSD, an “algorithmic” stablecoin, broke its supposing 1–1 USD peg that saw billions of dollars suddenly evaporate from its market value as well as its related cryptocurrency LUNA. While US Treasury Secretary Janet Yellen reckoned that such assets do not pose systemic risk financial stability currently, it might eventually do so due to its rapid growth. She hence urged Congress to approval federal regulation of stablecoins by end of the year.


Nomura latest bank to offer Crypto Derivatives trading

Nomura launched over-the-counter cryptocurrency derivatives with bitcoin non-deliverable forwards and non-deliverable options for clients in Asia out of Singapore.

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