EQUOS — Morning Update — November 2nd

If Asian futures are any indication, markets are setting up for a slight rebound after a painful week (and month). Last Friday, after many tech stocks were sold off, the S&P fell 1.3% and treasuries were also under pressure, pushing the 10-year yield to 0.88%. Gold rose 0.55%, but is still quite far from the $1,900 level.

While it’ll probably be an uneventful start of the week, the ‘calm before the storm’, there’s plenty of news to look forward to: the US elections, a Fed speech on the state of the economy, the Ant IPO, Chinese manufacturing data, and, as an ongoing theme, countries’ responses to the covid increase.

Bitcoin isn’t waiting for anything or anyone, though. Over the weekend, BTC had an impressive intraday high of $14,100. We’re currently a little lower, at $13,715, however, still impressive relative to prices just a week or two ago and even more so when traditional markets have turned risk-off.

It’s interesting to see that, as we trend up and reach this year’s high, the retail sentiment is turning strongly bullish, but hedge funds, on the other hand, have turned sharply negative. Confusingly enough, a quick Google trend check shows us that searches for crypto or BTC haven’t risen in any significant fashion, suggesting that retail traders might not be the drivers behind this rally.

Away from the King Coin, alts look set to regain some of the footing they had lost relative to BTC in the past weeks. It’s worth remembering that, while alts are up in dollar terms, the focus of this rally has very much been BTC, and ETH, LTC, ADA, BCH, DASH, XMR, XTZ, DOT, etc. have comparatively experienced massive losses.

By the way, on a much longer term basis, I came across this beautiful chart looking at prices at the date of publication of the Bitcoin white paper. Check this out:

Lastly, as a quick information nugget, we read a report about BitMEX chief officers looting around $440m from the exchange after finding out about probes… which probably won’t help their case during the ongoing lawsuit.

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