MARKETS week ahead: February 23 – March 1Last week in the news
There are currently several words which shape investors sentiment, including trade tariffs, inflation, slower economic growth. All three words are active for come time, which impact market moves during the previous week. Fears of inflation, after a release of Michigan Consumer Sentiment on Friday, pushed the US equities strongly toward the downside. The S&P 500 dropped by 1,7% within a day, after reaching the new all time highest level. The index closed the week at the level of 6. 013. Investors were looking more at the safe-haven assets, in which sense, the price of gold again reached the new highest level at 2.954, while the 10Y US Treasury benchmark sharply dropped to the level of 4,43%. The crypto market was a bit traded aside, where BTC continues to move within a channel between $ 96K-$ 98K levels.
The Michigan Consumer Sentiment Index final for February was the one that shook the markets. Surprisingly lower data from estimated, were the ones which supported investors fears from future inflation. The Index level of 64,7 was lower from expected 67,8. On the other hand, inflation expectation data were the ones that surprised investors. Namely, US consumers are expecting inflation at the levels of 4,3%, while five years inflation expectations were increased to the level of 3,5% from 3,2% posted during previous releases. Investors were not at all happy with such inflation development, not even as an expectation, which showed by a significant drop in US equity indexes.
A lot of news attention during the previous week was on the earnings report of Berkshire Hathaway. The most famous investor on the market, Warren Buffet had stockpiled more cash for another quarter through sale of stocks. As per reports, its cash position currently stands at $334B. Regardless of this move, the Buffet noted that Berkshire Hathaway will always prefer stocks over cash, without too much further explanation. During his previous comments, he sort of criticized the market, calling it too expensive at this moment and only a few buying opportunities. Nevertheless, shares of Berkshire Hathaway continue to gain in value, adding 5% from the start of this year. At the same time, Reuters reported that Buffets company will most probably increase stake in five Japanese trading houses, which he currently holds in portfolio, including Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo.
As of the week-end a news hit the market that crypto exchanger Bybit was under a huge cyber attack, where estimated, $1,5 billion worth of ether was stolen. As news is reporting, an entity from North Korea was suspected. The stolen coins were then transferred into BTC. Although Bybit reacted promptly, still, the exchanger faced significant withdrawal requests from its clients.
Crypto market cap
There was another volatile week on the crypto market. After significant gains two weeks ago, the previous week was in a mood of corrections. The crypto coins were traded in a mixed manner. There were almost equal numbers of both coins which finished the week in red and in green. However, total crypto market capitalization decreased by 1% on a weekly level, losing total $30B in value. Daily trading volumes were modestly increased to the level of $239B on a daily basis, from $170B traded two weeks ago. Total crypto market increase from the beginning of this year, currently stands at -2%, with $80B outflow of funds.
Despite the both winners and losers during the week, still, the crypto market ended the week with a total loss of $30B on a weekly basis. The coin with highest participation, BTC, was traded modestly down by 0,9%, losing total $17B in value. On the opposite side was ETH, who managed to gain $ 10B in value, increasing it by 3,2% w/w. Other significant movers in nominal terms were XRP, which was traded down by 6%, dropping its market cap by $9,8B. Solana was also traded lower, dropping by 10,7% w/w or $10,1B. Another coins with significant drop was DOGE, who managed to decrease its cap by $ 4B or 9,9%. Among gainers Maker should be especially mentioned, as this coin increased its value by 55% within a single week. At the same time, this coin increased the number of its coins in circulation by 1,9%. Several of other weekly winners were ZCash, with a surge of 7,9% w/w, while a portion of other smaller altcoins managed to gain below 1% on a weekly level.
When coins in circulation are in question, Maker was already mentioned with its increase of 1,9%. At the same time, ZCash decreased its circulating coins by 2,7%. Filecoin added 0,8% of new coins to the market, while IOTAs increase was 0,6%.
Crypto futures market
The crypto futures market was traded lower compared to the end of the previous week. BTC futures were traded around 3% lower, while ETH futures ended the week around 4% lower.
BTC futures maturing in December this year closed the week at the level of $101.875, and those maturing a year later at the level of $111.380. Despite the drop, it is still positive that investors are perceiving the BTC price at levels higher from $100K in the future period.
ETH futures maturing in December 2025 were last traded at the level of $2.807, and those maturing in December 2026 closed the trading week at $3.017.
