Alpha Zone
My Reading List
Log in
DeFiGaming & MetaverseInfrastructureMarketsNFTs
Aurelie Barthere
Key Takeaways
7 min read
  • Real rates are up in the US and Europe and Tech equities look wobbly.
  • This week the Fed is unlikely to surprise markets. Beware the Bank of Japan though, the only central bank which has not normalized policy yet.
  • Crypto is trading de-correlated to equities so far, and the BTC price momentum has turned risk-on.
  • The positive news streak around institutional adoption continues with Deutsche Bank crypto custody announcement. New addresses on-chain climb further this week.

ECB’s dovishness

The only hawkish surprise delivered by the European Central Bank’s (ECB) meeting last week was the central bank’s decision to hike the main policy interest rate by 25bps to 4.50%, which, itself seems to have been more contentious than in prior meetings: “Some members would have preferred to pause” (ECB press conference). The tone, guidance and press conference were all on the dovish side compared to this summer.

The key sentences of the meeting were: “Based on our current assessment, we consider that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to our target. Our future decisions will...