EQUOS — Morning Update — November 25th

Risk on — This is how markets feel today. We’ll talk about crypto soon, but already in the traditional space we are seeing important moves. With the Trump administration going back on the attacks against the election process, markets were bolstered by what seems to predict a more peaceful transition. President Trump still hasn’t conceded, though. It’s also worth noting that Covid cases are still having a serious impact, both in the US and globally — it’s just that there’s not much else to do with the cash on hand.

The Dow reached an iconic (and all-time high) of $30,000. The Russell 2000 rose 2%. The S&P rose over 1.5%, closing at $3,635. Treasuries were sold off, pushing the 10-year yield at around 0.88%. Gold unfortunately did not benefit, falling yet another 1.5%, continuing its descent, now at $1,805.

Crypto did benefit, though. BTC rose almost 6% intraday, closing 4% on the session, currently at $19,130 (that’s less than 5% away from 20K, to put things in context). At this point, it seems like it will have to retest all-time highs. The trend started in early October and today, it is still impressive, steady, and strong. Naturally, as I like to be contrarian, I’m also wary of the reversal of enthusiasm, especially when a lot of the on-exchange transactions are as leveraged as today.

By the way, did you see that the volume on Bitcoin Futures (across all exchanges), reached an all time high, well above $500 Bn?

Alts are partying like it’s… 2017? Not to say that the last session was great (they actually underperformed relative to BTC) but the moves we’ve seen recently along with the general enthusiasm spreading across social media suggests we’re not done yet. There’s plenty of room to get close to all-time highs and plenty of powerful moves going on.

ETH is closing essentially flat but is holding onto $605 — a few days ago people were asking whether it could break through $480. Did you see what’s not staying flat? XLM pumped a whole 45% on the session: absolutely massive... ADA is up 7% on the session, following a torrid ramp up during the past five days. BNB is also making a come-back, back above $33, inches away from an ATH. DASH, BCH, and XRP just closed off a deep green candle. LTC and LINK followed ETH and are closing flat.

On more fundamental news, it was great to see Pendal Group, a large fund in Australia, allocate some of their AUM to Bitcoin. Everyday it seems, someone from the traditional space opens up to crypto — eventually, that snowball will roll to be big, I suspect. https://www.coindesk.com/asx-fund-manager-bitcoin-cockroach

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Justin d’Anethan

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