Coinbase’s Head of Research, David Duong, has shared his insights on the recent market movements in traditional finance and crypto. 

He believes that current macro conditions suggest a temporary pause in the recent strong USD trend, which should support the crypto market. 

Key Crypto & Finance Movements

Duong notes that the recent carry trades upset by the Bank of Japan’s decision to raise the hard cap on its 10-year bond yield have created instability across different pockets of the FX market. 

Meanwhile, the surprise decision by Brazil’s central bank to cut its benchmark SELIC rate by 50bps (compared to expectations of 25bps) has led to higher interest rates in some price currencies coming down.

In the US, the yield curve steepened significantly following the …