Summarising weekly developments: 1T, Macro, TradFi, Crypto and much more...
ONE TRADING NEWS
We’ve had another busy week but all is good and we’re excited to share more news with you very soon… For the time being:
Crypto Fees: We moved from a flat fee structure on crypto withdrawals to dynamic fees based on the blockchain usage. On certain coins, the fees have been slashed by as much as 90%. As a reminder, we do not charge a fee on deposits. Please also note that withdrawal fees will vary according to the blockchain usage on the crypto asset being withdrawn.
Euro rails improvements: We’ve made upgrades to our euro rails meaning you can instantly deposit euros. We have seen a lot of competitors charging large withdrawal fees to discourage customers from withdrawing. Our goal is to make it easy for all of our customers to get money and assets on and off the platform quickly and with the lowest fees.
GENERAL MACRO NEWS
Beat from the Street (Tech/Business/Finance/Economy)
The FED continued its hiking schedule last week as they bumped US interest rates by another 0.25%. Despite a slightly weaker labor market and strong GDP numbers, the FED still hiked instead of giving the market some relief. Many traders are starting to worry that the FED is pushing it too far, even though core CPI is still quite high.
EU plan to launch a digital Euro (a Euro CBDC), promising complete privacy, that can “help safeguard public money in the face of a surge in cryptocurrencies like Bitcoin.” 🤡 - WEF
Christine La Garde says: “the digital euro, max 300 euros should not be tracked and even that is “dangerous” because of terrorists. Anything above should be monitored by the state”
Microsoft deepens relationship with PayPal to offer simple, flexible options - Yahoo Yahoo Finance
Two thirds of Americans say their financial planning needs improvement - Yahoo Yahoo Finance
As you see below, Bitcoin still ranks ahead of other comparable asset classes YTD - Investopedia Investopedia
Twitter Rebrands to X:
While there are mixed opinions (and some very disgruntled users) as a result of Twitter’s rebrand to X, it could be beneficial for the crypto market in a number of ways:
Increased awareness: With talk of the app gradually becoming ‘the everything app’ (like China's WeChat) we could see on-app payments and there has long been talk of integrating cryptocurrencies on the platform. While this ‘everything app’ approach could have some concerning dystopian ramifications for data and privacy, we remain cautiously optimistic. X is also a major platform for crypto discussion, news and spotting trending projects. The rebrand could help to make X even more of a crypto hub, which could lead to increased adoption and awareness.
Elon has a history of supporting cryptocurrencies. He has previously tweeted about his support for Dogecoin, Shiba Inu, and Bitcoin, and he has even said that he would like to make Tesla accept Bitcoin payments. With ∼350M monthly active users, If Elon were to integrate cryptocurrency payments into Twitter, it would be a major endorsement for the crypto industry.
Increased adoption and liquidity: If X were to integrate cryptocurrency payments into its platform (Lightning payments are already available), it would make it easier for people to buy, sell, and use cryptocurrencies, providing a new marketplace and make it easier for people to trade cryptocurrencies.
Overall, the Twitter rebrand could have a significant positive impact on the crypto market. However, it is important to note that the actual impact of the rebrand remains to be seen.
TradFi Pulse:
Web3/crypto startup fundraises, Relevant earnings calls, e.g. Tesla, Alphabet, Meta etc.
Fitch downgrades US credit rating from AAA to AA+ “The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing government debt burden, and the erosion of governance relative to “AA” and “AAA” related peers over the last two decades that has manifested in a repeated debt limit standoffs and last-minute resolutions” - Adam Button
Stocks: The S&P 500 fell into bear market territory, meaning it is down more than 20% from all-time high. The Nasdaq Composite also fell into bear market territory.
Tech stocks: Tech stocks were particularly hard hit this week, with many of the biggest names in the sector seeing their share prices decline by double digits.
The sell-off in tech stocks is particularly notable, as tech stocks have been some of the best-performing stocks in recent years. However, tech stocks are also some of the most sensitive to interest rate hikes, as they are often valued on future earnings growth. Many also think they have been vastly overpriced in the past.
Commodities: Commodities prices also rose this week,the rise in commodity prices is a sign that investors are worried about inflation. Commodities are often seen as a hedge against inflation, and as investors become more worried about inflation, they are buying more commodities.
At just under 8%, inflation in the U.K. is still the highest among G7 countries and hasn’t cooled as quickly as other economies. BoE officials will likely raise their benchmark rate to a peak of 5.75% by the end of the year, according to a Reuters poll, which would set borrowing costs to the highest since 2007 (Reuters
Global interest rates have been rising in recent months in an effort to combat inflation. The US Federal Reserve has raised interest rates by 0.75 percentage points since March, and the Bank of England has raised rates by 0.25 percentage points four times since December. Other central banks, such as the European Central Bank and the Bank of Japan, have also signaled that they are considering raising rates in the near future.
The rise in interest rates is having a mixed impact on the global economy. On the one hand, it is helping to slow inflation, which is a positive development. However, it is also making it more expensive for businesses to borrow money, which could dampen economic growth.
The impact of the rising interest rates on the global financial market is also mixed. On the one hand, it is causing stock prices to fall, as investors become more risk-averse. However, it is also making bonds more attractive, as their yields are rising.
MARKET NEWS (CRYPTO SPECIFIC)
A tough week for Binance: U.S. Justice Department is considering fraud charges against Binance - reports Semafor; Nigeria’s SEC warns against trading on Binance - Cointelegraph. Binance, the world’s largest crypto exchange was supposed to leave China when the country made crypto trading illegal. Almost two years later, users traded $90B of cryptocurrency-related assets there in a single month. WSJ News.
Litecoin Halving completed successfully
As Worldcoin captures the headlines with thousands queuing up to get their eyes scanned in exchange for free crypto. Over 2 million have signed up! However, the Kenyan government has suspended Worldcoin activities in the country. Are we heading towards a Black Mirror-like future?!?
Michael Saylor’s Micro Strategy plans $750M stock sale so it can buy more Bitcoin #bullish
Investment management company VanEck, which has $77billion in assets under its management has applied for the #Ethereum Futures ETF
Tether bought 2,310 of Bitcoin in Q2, raising its stacks from 52,698 bitcoin in Q1 to 55,008 bitcoin, worth approximately $1.67 billion.
Prices
BTC: $29,021.75
ETH: $1,828.63
Dominance:
BTC: 47%
ETH: 18%
Stablecoins: 10%
Market Cap:
Total: 1.22T
DeFi: 47.84B
NOTE: The Fear and Greed Index is a tool that used to measure the sentiment of the market. It’s based on a number of factors, including the price of Bitcoin, the trading volume, and social media sentiment. The index is scored on a scale of 0 to 100, with 0 being extreme fear and 100 being extreme greed.
Fear and Greed Index
As of August 5th, 2023, the Fear and Greed Index for Bitcoin is 50, which is classified as Neutral. The index has been in the Neutral range for the past few weeks, as investors have been cautious about the global economy and the future of Bitcoin.
The Fear and Greed Index is a useful tool for investors, but it is important to remember that it is just one indicator of market sentiment. Investors should always do their own research before making any investment decisions. It’s also worth remembering the famous Warren Buffet quote: be “fearful when others are greedy, and greedy when others are fearful.” (this is not financial advice).
TRADING HIGHLIGHTS
Top 3 performing coins this week
Some big moves this week. This is for informational purposes only. We are not endorsing any of these… Interesting to see there are still big moves happening, though… (CoinMarketCap) CoinMarketCap
It's certainly positive seeing the Bitcoin hashrate continuing to increase over time. The Bitcoin Network Hash Rate is at a current level of 361.57M, down from 366.78M yesterday and up from 187.22M one year ago. This is a change of -1.42% from yesterday and 93.13% from one year ago.
KPMG, one of the ‘top 4’ largest accounting firms in the world acknowledges the positive impacts #Bitcoin can have on the environment. (KPMG) Source
To counter the adverse effects of Bitcoin mining, the Bitcoin Mining Council (BMC), a global forum consisting of mining companies representing 48.4% of the global Bitcoin mining network, revealed that renewable energy sources accounted for 58.9% of the electricity used in Bitcoin mining operations in Q4 2022. (Techopedia) Source
MEME OF THE WEEK
Some of us at One Trading have already watched them both… How long until we see a BARB or KEN coin? 🤣 feel free to tag us on your favourite meme on Twitter, looking forward to seeing them.
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