EQUOS — Morning Update — October 15th

As has been the case almost daily, markets were affected by the likelihood of a fiscal stimulus bill going through—this time with pessimistic comments by Steven Mnuchin. The S&P 500 closed 0.75% down, following a previous down session, due to a pause in vaccines trials. Treasuries were flat, with the 10-year yield still at 0.73%, and the dollar retreated slightly. Gold picked up, currently up 0.50%, just above $1,900.

In Asia, futures slipped in Japan, Australia, and Hong Kong. Australian bond yields and the local dollar dropped after RBA governor said rate cuts were still a possibility.

In the crypto space, we’re holding on well. BTC is essentially flat, currently at $11,425. This is nice to see, as the traditional space and the macro environment are experiencing some risk-off moves. It is hard to sell crypto not only when we have heard so many big players come in, but also when markets and economies are so affected by central banks’ policy decisions.

ETH is down just 0.8%, which, for a relatively volatile coin, is almost flat as well. In addition, we recently noticed the ETH active supply on exchanges dropped significantly, meaning ETH traders are turning into ‘hodlers,’ which in the past has been a bull run catalyst. Let’s see how it plays out now.

Other larger altcoins moved similarly, either flat or slightly down—I’m thinking of ADA, XMR, LTC, LINK. However, we have seen some notable red candles: XTZ, which had a good day yesterday, fell a good 5.3%, XLM fell 3.4%, DASH fell 2.3%, and DOT is down 1.7%. It is good to see BCH, which had done great yesterday, endure against the market and all odds, up almost 1%.

Away from price action, but very supportive of bullish moves, Grayscale recorded the largest ever quarterly inflow with over $1B in Q3 of this year… This is a massive amount poured into BTC—and presumably, if the trend continues, into other cryptocurrencies.

Couple that with the recent interview of Mark Yusko, founder and CEO of Morgan Creek, who highlighted the insane amount of money being printed (27% of the USD M1 was printed just this year—compare that to the 2% of Bitcoin supply mined in 2020) and the space could be set for an interesting last quarter.

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