EQUOS — Morning Update — October 28th

There’s little day-to-day news and so investors’ focus is returning to longer-term themes. The coronavirus is spreading at a higher pace (there’s a 10% increase in hospitalizations in 32 US states, and European nations are grappling with how they can avoid renewed lockdowns). The US-China tensions won’t be resolved anytime soon, regardless of who is president, as topics like intellectual property, trade relations, HK, Taiwan, and the South China sea remain contentious.

The S&P is down about 0.35% and Asian equities look set to follow, with futures in Australia and Japan edging down. Treasuries, on the other hand, continue to be bought and the 10-year yield has now decidedly fallen below 0.80%, currently at 0.76%. Gold hasn’t budged, now at $1,905.

What is definitely moving is Bitcoin. After taking a breather at around 13K, we’ve now moved up about 4.4%, to $13,640. The BTC Dominance index is now at 63, after a long ramp up, and alts just aren’t keeping up.

While still in the green, alts were down over the weekend and on Monday. The rise, yesterday, was tamer, with ETH up 2.5%, LINK up 2.2%, BCH up 1.9%, LTC up 1.8%, XMR up 1.6%, and XTZ and ADA essentially flat. DOT retraced some of its 8% gains, falling a little over half a percent.

… Onto the drivers of BTC’s move up. First, we’re probably seeing a continuation of the enthusiasm following the PayPal news and the investment by other companies into the asset class. Yesterday, though, we also heard of DBS, the Singaporean bank, offering its own crypto exchange and custody services — a very bold (and some would say shocking) move by a traditional bank. The announcement/website was later taken down, but the message still came through.

The above was naturally even more impactful after JP Morgan (which has had a strong anti-bitcoin rhetoric for years) suddenly declared that “long-term upside for bitcoin is considerable if it competes more intensely with gold as an ‘alternative’ currency.”

By the way, even though it’s not surprising, did you see the number of addresses holding over $1K of BTC hit all time high? Check out the picture just below.

We also saw the biggest BTC transaction in history go through, just yesterday, a total value of $1.1B.

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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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