EQUOS — Morning Update — November 10th

For most of the past two weeks, the news was dominated by the presidential race. Today, it seems this was eclipsed by Pfizer’s vaccine reportedly having a 90% success rate in stopping Sars-Cov-2 infections.

On the news, the S&P gapped up and rose more than 3% intraday (reaching new highs), only to retrace and close still 1.25% higher than its previous close. The US dollar rose against its peers. The Nasdaq, which is more tech-focused, closed 2.6% down.

It was interesting to look at what didn’t rise, actually. Treasuries were sold ‘en masse’, pushing the 10-year yield to highs of 0.93%. Gold fell a massive 5.1%, to $1,860. Crypto also suffered somewhat.

The decoupling to traditional assets we’ve observed between crypto and legacy markets endures, today in favor of equities and against BTC. We fell 4% intraday and then recouped to close just under 1% down, currently at $15,330. While many look at precious metals in conjunction with crypto, it’s nice to see that kind of outperformance relative to gold.

As we’ve seen in the past couple of days, the BTC Dominance index, which has gone over 66, has now slowly retracted back to 64.7. Alts are indeed holding on (for dear life?) to the gains accumulated over the weekend, when ETH, along with the larger cap coins, picked up and followed BTC’s incessant rally.

On a more fundamental basis, there was news that would have affected the crypto space one way or the other, such as the report of Cred, a crypto lender, filing for bankruptcy after losing funds to fraud. On the positive side, we heard about 39 firms applying to offer crypto services under new regulation, according to the Dutch Central Bank. We also heard billionaire investor Stanley Druckenmiller saying he owns Bitcoin.

Personally, I love to see crypto markets unaffected by news. While some could see this as negative, I believe something bigger is at play, and investors are acutely aware of this: a shift in large institutions’ mindset is coming, not only in regards to what Bitcoin is, but also its role in the global monetary system. Just expect some volatility and interesting moves along the way.

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Passionate about financial markets, long-term investments, the occasional short-term trade and disruptive technologies.

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Justin d’Anethan

Justin d’Anethan

Passionate about financial markets, long-term investments, the occasional short-term trade and disruptive technologies.

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