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nerdzvest Insight
Market could continue rising but one should still remain cautious
The past week is a bag of mixed feeling. On one hand, we have seen markets rallying from their lows. On the other hand, negative news were floating in the global political scenes (Abe shot dead, Boris Johnson resigns, Sri Lanka protest). The Nerdz thinks that this could boil down to all the sufferings that people are enduring for a long time such as high inflation.
While markets upward momentum seems strong at the moment, The Nerdz remains our cautious stance for the near term as there are worrying signs of further downside although it is undeniable that markets are relatively oversold for now.
The 2–10Y US Treasury spread has turned negative again while US PMI has continued its decline. These are worrying signs of a contracting economy coupled with Fed hiking rates and performing quantitative tightening. Meanwhile, Chinese economy and market seems to be moving in the opposite direction and The Nerdz will monitor this divergence carefully for any opportunity.
Nerdz Indicator
Short Term: Cautious
Medium Term: Bearish
Long Term: Opportunistic
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Key Happenings
Musk wants to terminate its Twitter deal
Elon Musk wants to end his $44 billion deal to buy Twitter as Twitter allegedly breached merger agreement with materially inaccurate representations. However, Twitter’s board chair Bret Taylor said the company is still committed to closing the deal at the agreed-upon price and plans to pursue legal action to enforce the agreement.
https://www.cnbc.com/2022/07/08/elon-musk-notifies-twitter-he-is-terminating-deal.html
NFT platform war could happen in the near future
According to DappRader’s “Dapp Industry Report for Q2”, an upcoming non-fungible token (NFT) platform war could be on the horizon. The report spoke of how UniSwap had recently acquired Genie and OpenSea purchased Gem in an effort to expand their respective services to include NFT aggregation tools, which accumulate NFT offers from various trading platforms.
https://cointelegraph.com/news/nft-platform-wars-could-be-ahead-says-new-dappradar-report
Market Updates
US and European markets rallied
The US and European markets shrugged off recession fears and rallied for the past week. US saw a huge payroll gains in June which convinced the market that the US economy is in decent shape to handle Fed aggressive rate hikes.
Global GPU cost drops amidst declining Bitcoin mining revenue
Total revenue earned by miners in transaction fees and mining rewards dropped ~80% to its one-year lows at nearly $15 million, tracing BTC drastic drop in prices. In addition, a global chip shortage and the coronavirus pandemic shot up prices of GPU which further impacted the miners’ bottom line. With card manufacturers resuming operations across the world, GPU prices have seen a massive decline with some cards selling for below MSRPs. In May alone, GPU prices dropped over 15% on average as supply exceeded the market demand. Moreover, the recent influx in GPUs has forced sellers on the secondary markets to bring down their exorbitant prices on used mining rigs.
