Galaxy Digital Trading: October 8, 2020
Update:
• The VP presidential debate took place last night and the only noteworthy highlight was a rogue fly landing on the head of Mike Pence. The narrative is still the same, markets are expecting a Biden win and have moved on to who will take the Senate.
• Unemployment fears are creeping in across the board. Support programs have been coming to an end and firms that have been struggling should start going to the wall in the coming months. US employment data could be shifting as today’s figures were higher than forecasts.
• BTC price action was soft through the Asian session with the desk seeing quite a bit of sell side flow in the last couple of days, and the most for some time. As we mentioned yesterday, there was some chunky 9-10k put printed, maturing tomorrow, which we’re keeping an eye on.
• Price popped higher late in the Euro morning and is trading ~10738, up 0.65% in early US trading. The BTC catalyst in waiting could hinge on global fiscal stimulus plans, which is unlikely in the near-term.
• It’s likely the news that Square have purchased ~$50m of bitcoin - 4709 BTC, representing 1% of their total assets. Will be interesting to see this trend develop and could be a big theme in 2021 as firms start to look at this seriously and follow their lead.
• No end in sight for the DeFi token bleed. Normal bear corrections finish in the 80-90%, range which could mean there’s still more room to fall. As mentioned on Monday the desk has seen value buyers step in for the leading projects who continue to build out their offerings.
• Projects are also likely to work on their token models and build out ways to capture more value for holders. Maker, which largely missed the DeFi bull run, has reintroduced stability fees - 2% - for DAI borrowers posting ETH collateral, which should boost demand for MKR.
• MetaMask, the defacto gateway for DeFi, announced earlier this week announced it was to add token swap functionality by aggregating liquidity from across the ecosystem. This would allow users to check pricing across DEXes and minimise transfers which will save on gas fees for their 1m users.
• Post DeFi the talk has been about non fungible tokens. Yesterday, major auction house, Christies, sold a digital portrait of Satoshi Nakamoto for ~$131k, the first of its kind.
• 100x Group, parent of BitMEX, have announced leadership changes to the group in the face of US charges, with an interim C suite now in place.
Update:
• The VP presidential debate took place last night and the only noteworthy highlight was a rogue fly landing on the head of Mike Pence. The narrative is still the same, markets are expecting a Biden win and have moved on to who will take the Senate.
• Unemployment fears are creeping in across the board. Support programs have been coming to an end and firms that have been struggling should start going to the wall in the coming months. US employment data could be shifting as today’s figures were higher than forecasts.
• BTC price action was soft through the Asian session with the desk seeing quite a bit of sell side flow in the last couple of days, and the most for some time. As we mentioned yesterday, there was some chunky 9-10k put printed, maturing tomorrow, which we’re keeping an eye on.
• Price popped higher late in the Euro morning and is trading ~10738, up 0.65% in early US trading. The BTC catalyst in waiting could hinge on global fiscal stimulus plans, which is unlikely in the near-term.
• It’s likely the news that Square have purchased ~$50m of bitcoin - 4709 BTC, representing 1% of their total assets. Will be interesting to see this trend develop and could be a big theme in 2021 as firms start to look at this seriously and follow their lead.
• No end in sight for the DeFi token bleed. Normal bear corrections finish in the 80-90%, range which could mean there’s still more room to fall. As mentioned on Monday the desk has seen value buyers step in for the leading projects who continue to build out their offerings.
• Projects are also likely to work on their token models and build out ways to capture more value for holders. Maker, which largely missed the DeFi bull run, has reintroduced stability fees - 2% - for DAI borrowers posting ETH collateral, which should boost demand for MKR.
• MetaMask, the defacto gateway for DeFi, announced earlier this week announced it was to add token swap functionality by aggregating liquidity from across the ecosystem. This would allow users to check pricing across DEXes and minimise transfers which will save on gas fees for their 1m users.
• Post DeFi the talk has been about non fungible tokens. Yesterday, major auction house, Christies, sold a digital portrait of Satoshi Nakamoto for ~$131k, the first of its kind.
• 100x Group, parent of BitMEX, have announced leadership changes to the group in the face of US charges, with an interim C suite now in place.
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