EQUOS — Morning Update — October 13th

Trump’s recovery is now complete as he’s tested negative for the coronavirus, and is back on the campaign road. The S&P gapped up, reaching 2% intraday, closing 1.66% above the previous close. The dollar index is down about 0.6% while Treasuries rise and the 10-year yield fails to reach 0.8%, now at 0.775%. Gold, interestingly, is staying relatively muted; after a big push above $1,900, we’re now staying still at $1,925.

Crypto is feeling even more bullish, no doubt helped by the global macro moves but also by the recent Square investment that has made headlines. Since the announcement on Friday morning Asia time, BTC is up about 7.5%. Only yesterday, we had an intraday move of 3%, pushing us to $11,725 -we’ve now retraced slightly at $11,560.

We can see the optimism flow into the derivatives space as well, checking Skew’s dashboard, we see some good activity on the Dec20 and Mar21 14k-16k call spreads in 250+ lots and 18k-20k call spreads in 425+ lots.

ETH is also on a roll. It had -and still is- lagging recently but yesterday we saw a 5.5% intraday move, and the session is closing up about 3.75%, currently at $388.

Other coins were naturally also in the green. LINK is up about 6.12%. XMR by a decent 3.4%. XTZ caught up after yesterday’s tepid move, now up about 4% on the session. ADA is up 2.8% on the day. ZEC after a massive green candle was content with a 1.3% move yesterday. LTC had a mediocre 0.7% rise. XLM barely moved. DASH whipsawed only to close flat.

Amidst all the enthusiasm, and with many traditional companies having recently invested or allocated some of their balance sheet to BTC, we now have about 600,000 bitcoins held by long-term and not ‘crypto native’ players. That’s a big deal. A Norvegian investor amusingly noted that since the national funds have some exposure to those companies, every norvegian citizen owns a fraction of a bitcoin themselves.

Lastly, as a quick information nugget, Grayscale Ethereum trust has become an SEC reporting company. Yet another stride in gaining more acceptance in the traditional space and getting people, who might not otherwise be buyers of crypto, in.