The Friday sell-off coincided with the release of a record high German PPI leading investors to shy risk as expectations of further tightening commenced.
ETH saw an even steeper sell-off, likely exaggerated by an extended bullish sentiment ahead of the merge, as we briefly noted when commenting on the ETHBTC strength in our last market update.
Macro headwinds are once again breezing in the market, as the dollar strength index has pushed beyond the yearly high towards a new 20-year high this week. The strengthened dollar has generated a shaky environment for various assets. Since the Friday close, SPX is down 2%, Nasdaq is down 2.44%, while BTC is up 0.78%. Nevertheless, BTC’s leg down early Friday might have foreshadowed the ensuing sell-off in equities, and it is far too early to make any decoupling-related victory laps.