Weekly Commentary October 13th

Happy Friday One Traders!

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As ever, we hope you’ve had a good and successful week. Quick reminder, if you’re not already keeping up to date with our more regular updates on our community channels Discord and Telegram be sure to give us a follow. 

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We’ve had another busy week adding new tokens to our new product, Instant Trade. This week we’ve added:

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➡BAL, YGG, MANA, LPT

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If you haven’t tried it already, you can read a summary of all of the benefits of using our new product, Instant Trade here. You can also see a comparison in the prices we offer vs other mainstream exchanges in our blog here. 

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Now let’s have a look at what’s been going on in the world over the last week.

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General Macro News

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Beat from the street…(Tech/Business/Finance/Economy)

• Microsoft CEO Says AI Could Only Tighten Google's Stranglehold on Search. Satya Nadella testified in an antitrust trial exploring whether Google's dominance is unlawful (Decrypt).
• Metro Bank shares plunge 50% as it tries to urgently raise £600m (FT).
• Other major banks including Citigroup, Goldman Sachs, Wells Fargo and Yahoo Finance are all said to be feeling the pressure - Citigroup plans for layoffs (Yahoo Finance).
• Meta starts rolling out generative AI tools for all advertisers (Investopedia).
• Tesla $TSLA announced it delivered 435.1K vehicles in Q3 missing expectations of 457K (ForexLive).
• Oil prices have surged by over 4.65% amid the Israel-Hamas war (Fin Watch).
• TikTok begins testing a $4.99 ad-free subscription tier (Tech Crunch).
• A hacker has put personal genomics and biotechnology company, 23andMe’s user data up for sale on the internet (Bloomberg). 

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TradFi pulse:

The US has issued $1.8 trillion in Treasuries so far this year, which is already the second highest yearly amount in history behind 2020 (Fin Watch).

The US national debt is now growing faster than the economy (Baron’s):

The US housing market, average 30-year mortgage rates soared to a new 23-year high, reaching a staggering 7.84%, and ultimately settling at 7.81% for the week. This spike in mortgage rates compounds the challenges already faced by the housing sector, including historically low levels of housing turnover and sky-high house prices. Prospective homebuyers are confronted with an increasingly unaffordable market, which is raising concerns about the overall health of the real estate industry. 

In the UK, the housing market displayed a different trend. House prices declined for the sixth consecutive month in September, with one mortgage lender reporting a 0.4% sequential drop. Another lender estimated that house prices remained unchanged in the same period, following a 0.8% reduction in August. Both indices recorded their most substantial year-over-year decline since 2009.

The weakening housing market has been accompanied by a rapid contraction in the construction industry, as evidenced by an S&P Global/CIPS survey of construction purchasing managers. These developments painted a challenging picture for the UK's property sector.

Turning our attention to Europe, Germany's S&P Construction PMI posted a dismal reading of 39.3, signalling contraction in the construction sector. Given that construction contributes approximately 6% to Germany's GDP and that the German economy represents around 30% of the Eurozone's GDP, this data raised concerns about broader economic challenges in Europe. The Eurozone also faced disappointing news as retail sales fell more than expected in August, declining by 1.2% sequentially. This decline was attributed to sharp drops in gasoline sales, mail orders, and internet shopping (Simplicity Group Alpha).

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Crypto News

• Jump Trading lost more than $200 million in the FTX collapse (The Block).
• Erica Stanford, the author of Crypto Currier, has written another interesting summary on suspicious trading volumes from Bitspay.io and the role of CMC in publishing the data (LinkedIn).
• Judge rejects SEC motion to appeal Ripple ruling (Court Listener).
• Ripple’s CFO departs as the crypto industry faces C-Suite turnover (BeInCrypto).
• UBS Bank launches an innovative tokenized money market fund on #Ethereum (Blockworks).
• Criminal trial date set for September 17 of 2024 for former Celsius CEO Mashinsky (The Block).
• Honda now accepts crypto for payments (NASDAQ).
• Binance users in Hong Kong lose $450k in a wave of fraud texts (Cointelegraph).
• Binance’s post-FTX Industry Recovery Initiative (IRI) raised over $1 billion with the aim of helping strong crypto projects facing a liquidity crisis. A bloomberg analyst revealed from wallet analysis that IRI deployed less than $30 million so far(The Block)
• NFT marketplace OpenSea recently unveiled its new OpenSea Studio platform; a one-stop shop for creators to launch and manage their projects. Enabling creators to focus on creativity rather than operational details (Coinpage).

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Bitcoin Updates

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Bitcoin has had another strong week with BTC Dominance hitting a 3-month high as alts get hammered (Cointelegraph). Here are some of the key headlines: 

• 94.8% of #Bitcoin  supply has not moved in the past month, a NEW ALL TIME HIGH for the world's first crypto 🚀 (Crypto Trading Reports).
• SEC delays Blackrock, Bitwise and Invesco spot Bitcoin ETF decisions (X).
• Schoenfield, the former director of #BlackRock, said that the SEC will approve spot #Bitcoin ETFs within 3 to 6 months and there could be capital inflows of up to $200 billion (Crypto Trading Reports).
• Firms launch El Salvador’s first Bitcoin mining pool tapping geothermal energy (The Block).
• The amount of Bitcoin sitting on exchanges is around 2.9M and declining as seen in the chart below (via Bitcoin Telegram):

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Bitcoin is the best performing asset of the year, by a landslide (NYDIG via Bitcoin Telegram):

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Whatever your standpoint on Bitcoin, if you are interested in trading Bitcoin you can do so on our platform with among the most competitive rates in the market via Instant Trade.

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Prices… (at time of writing)

• BTC: €25,401.60 ↑ (+1% change from last week)
• ETH:  €1,467.80 - (0% change from last week)

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Dominance:

• BTC: 48.21% ↓ (-1.49%) from 49.7% last week  
• ETH: 17.23% ↓ (-0.97%) from 18.2% last week  
• Stables: 9.93% ↓ (-1.03%) from 10.96% last week 

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Market Cap:

• Total: 1.1T ⬆️ from 1.09T last week (+0.91%)

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Fear and Greed Index:

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We’ve seen a slight move from 50 down to 47 on the Fear & Greed Index this week. As ever, there are always a broad range of macroeconomic considerations that influence the score. 

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Trading Highlights (at the time of writing - CoinGecko)

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Top 3 Gainers (out of the top 100 by market cap only) - as always, this is not financial advice, and past performance is not a reliable indicator of future results.

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Meme of The Week

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Have a great weekend 😃 and for more updates, follow us across our various channels here. We’d especially love to see you and hear from you via our community channels; Discord and Telegram (English) Telegram (German) 👋