Philippine Consumer Spending Expected to Receive a Big Boost
April 15, 2022
In today’s Investa Daily we will talk about the rising use of leverage in BTC trading, the Majority of ADA tokens being owned by whales, the U.S. economy slowing down as seen in shipping numbers, and the expectations for PH consumer spending to increase.
- Bitcoin leverage ratio keeps increasing
- Whales own the majority of ADA tokens
- The U.S. economy expected to slow down as shipping numbers fall
- Philippine consumer spending expected to increase
Bitcoin leverage ratio rises to alarming levels
The “estimated leverage ratio” is a number that tells us how much leverage on average is used by Bitcoin investors and traders. This value is taken by getting the ratio between the current open interest and the reserve. This shows the ratio between the number of derivative contracts, or leveraged assets, against the actual amount of crypto in the derivatives exchange wallet. A rising estimated leverage ratio would mean that more people are engaging in leveraged trading and investing activities. Although more trading activity is always a welcome sight, increasing leveraged trading can be scary as price fluctuations could result in a series of forced liquidations due to margin calls and higher-than-expected losses. (Bitcoinist)
The majority of ADA supply falls back to whale accounts
Although the Cardano blockchain has yet to bounce back to its highs, ADA whales have continued to buy recently and have ended up holding the majority of the token’s supply. A person or account is deemed to be a whale once they obtain at least 10 million tokens in their wallet. As of now, it was reported that 46.6% of ADA’s total supply is owned by whale accounts as per Santiment’s findings. They also noted that a large portion of these whale accounts/wallets are owned by exchanges. To add some context to the picture, Santiment showed a study on whale activities in Bitcoin, noting that sudden spikes in whale transactions often indicated that prices will top. Although this is bad news for the short-term, they have stated that these situations could create buy-the-dip opportunities. A likely key for ADA to continue higher would be a big uptick in transactions to signify that the market is liking the blockchain’s features and services. (ZyCrypto)
U.S. shipping shows a further slowdown of the economy
The real economic activity in the U.S. has been slowing down dramatically, leading to lower demands for heavy trucks, cars, and freights. The heavy truck market in the U.S. has previously been a good indicator of how well the economy is doing. Higher sales numbers would usually come with good economic growth, whereas declines in sales often meant slower economic growth. Furthermore, freight volume has also seen growth slowdowns, with numbers reaching almost 0% growth. Although these are previously associated with recessions as lower shipping and transportation numbers would mean lower real economic activity, rapid shifts “in regimes across the economies and markets” have yet to be seen. (Street Register)
Philippine consumer spending expected to receive a big boost
Data from a recent study suggests that Filipinos are very eager to spend more on retail goods and larger purchases such as cars. This is in light of their anticipation of the bigger wages that they expect to receive next year. Many Filipinos are excited to receive higher household incomes. Studies show that more than 36% have already seen salary increases over the last three months, while 75% of households are expecting further increases in the following twelve months. In line with this, respondents also claimed that this will likely lead them to increase their spending, with half of them already applying for credit that they can use for purchases today. (Inquirer Business)
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