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Encouraging macroeconomic data welcomed with caution
The latest macroeconomic data paints a picture of a resilient US economy. Manufacturing is on the rise, job openings are plentiful and factory orders are booming. However, investors remain cautious: market expectations of rates towards the end of the year are now more hawkish than the Fed's own estimates. This will strongly influence the direction of financial markets in the coming months.
Speaking of US institutions, news broke earlier this week that the US government had moved over $2 billion worth of bitcoin related to Silk Road, spooking markets and sparking speculation of a potential massive sale. However, given that the BTC-USD pair was trading at a discount at Coinbase earlier this week, this may suggest that most of it may already have been sold.
This week, digital asset investments reverse last week’s outflows, with $862 million worth of inflows, signalling renewed confidence. Bitcoin ETF volumes continue to rise, reaching a new record of $111 billion in March, which is about triple of what they did in January and February.
