Monday's Markets Update (September 11, 2023)
On Monday, Nasdaq jumps up for second winning day. Traders ignored rising inflation expectations focusing on the micro-economic data instead. Tesla, Qualcomm, Meta Platforms rise on positive news. BTC dropped on technicals with Bears testing the important resistance on 25.4K. Other news: Crypto funding dropped almost 10x in 2023.
Inflation expectations for the year ahead increased to 3.6% in August 2023, with expectations for price growth in key areas also rising.
Consumers returning from their vacations at the beginning of the new working season appear to be less optimistic about inflation. Some of the reasons might be as following.
The price of gasoline, natural gas, and other energy commodities have been rising in recent months. This has contributed to higher inflation expectations, as consumers anticipate that these higher energy prices will be passed on to other goods and services.
The price of food has also been rising in recent months, due to factors such as droughts and crop failures in some parts of the world. This has also contributed to higher inflation expectations, as consumers anticipate that higher food prices will make it more expensive to buy groceries.
Inflation expectations can also be influenced by past inflation levels. If inflation has been high in the past, consumers may be more likely to expect high inflation in the future.
Crypto VC funding in 2023 has dwindled significantly compared to 2022. Foresight Ventures rep attributes this to the plateauing of many crypto narratives, such as layer-2 solutions, zero-knowledge proofs, and NFTs.
In 2022, the crypto space saw a boom in VC funding, with Q2, Q2 bringing $20.3 billion. However, VC funding in the crypto sector has noticeably dwindled in 2023. In the Q1, approximately $2.6 billion worth of crypto VC deals transpired. The second quarter fared even worse, with approximately $2.1 billion distributed across 292 funding rounds, marking one of the weakest performances in the realm of crypto fundraising.