Friday's Market Update (August 18, 2023)

19 Aug 2023 by rate3

On Friday, with the absence of macro news, Nasdaq tested its major support on 13.2K and managed to close in the green. BTC tried to stabilize after Thursday's flash crash, hovering above 26K, with a possible retest on 25K. Other: A recent report (Fortune) stipulates that VC to crypto dropped 90% from the previous year.

Crypto

Crypto financing has dried up, with only $500 million raised by eight VC funds in May 2023, a 90% drop from the previous year. This is due to a number of factors, including the recent crypto crash and regulatory uncertainty.
Comment

Some venture capitalists (VCs) blame the crypto industry for its inability to address the needs of its users and challenge it to bring in another billion users. VCs are essentially saying that the crypto industry needs to start complying with regulations, stop being so revolutionary, and adopt "travel rules" (which are regulations that require crypto exchanges to share information about their customers with each other). Only then, they say, will the crypto industry be able to achieve mass adoption.

FYI:

According to a recent survey, only 1.9% of the world's population owns cryptocurrency.
The average crypto user is a young, male, tech-savvy individual with a high income.
The majority of crypto users are located in developed countries.
Macroeconomics

Retail sales in Mexico grew 5.9% year-on-year in June 2023, the strongest since January. This was the 28th consecutive month of retail growth. Textile, self-service, and department stores recorded strong sales.

Comments

The nearshoring of manufacturing from China and other sanctioned countries to Mexico is a prime example of how market forces can shape the workforce. The influx of new manufacturers has created jobs and increased incomes, which has led to a rise in consumer spending. In 2022, the Mexican jewelry industry saw a strong growth of 19.4% year-on-year, driven by this increased demand. The jewelry industry is a major contributor to the Mexican economy, employing over 1 million people. This growth is expected to continue in the coming years, as Mexico remains a competitive manufacturing destination for companies looking to reduce their supply chain risks and costs.