Cryptocurrency analyst, Saxo Bank
This week the entire crypto market cap fell 16% to just over $230 billion. Similarly, Bitcoin fell by 15%, continuing its slide from the previous week. Ethereum held strong against Bitcoin by dropping 13% for the week.
This confirms that the last bounce ensnared overzealous buyers and now the market is likely searching for a new bottom. The overall market trend continues to be to the downside. The market tends to not react to positive news and overreact to negative press.
SEC delays decision on VanEck/SolidX ETF
On August 7, the SEC decided to delay its decision on one of the most highly anticipated Bitcoin ETFs by 45 days. The VanEck SolidX Bitcoin Trust is backed by Cboe and is considered to be one of the top contenders in the race to be one of the first US-regulated, exchange-listed crypto funds. The announcement aided the continued decline of the Bitcoin price. The SEC can continue to delay the decision into next year, but currently its next date to take action is September 30, 2018.
Traditional exchanges are launching crypto services
The New York Stock Exchange’s parent company Intercontinental Exchange announced the creation of Bakkt, a digital asset platform that will launch in November. Bakkt will launch with physical delivery of futures contracts. This could be the largest physically delivered futures contracts by volume from a US regulated institution. CME and Cboe contracts are cash-settled. This announcement is huge as anyone connected to ICE can connect to Bakkt and trade under their existing account.
Banks continue to mull over crypto services
Two Barclays employees stated on their LinkedIn profiles that they are working on a cryptocurrency trading desk initiative for the firm, hinting that Barclays may launch a digital asset service in the future. However, the bank denied any plans to launch a cryptocurrency trading desk but confirmed that the two employees do work at the bank. Additionally, Goldman Sachs announced that is considering to offer a custody service for cryptocurrency funds. If these solutions become live it could increase adoption among other institutions and potentially allowing for a greater flow of capital to crypto assets.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
