EQUOS - Morning Update - October 30th

Markets bounced back… for no apparent reason. The fundamentals that drove equities down for most of the week seemed to be ignored yesterday as the S&P 500 rose 1.22%, following Wednesday's gap down.

Treasuries were sold off, falling a quarter of a percent, and pushing the 10-year yield back above 0.8%. Gold traders remained bearish, pushing gold another half a percent down, to $1,865. Unlike equities, oil also continued to fall, down 3.6%, to $36.

Crypto continues to outperform other asset classes although it does look like the strong momentum of the previous week has cooled down slightly. Yesterday’s session took us from $13,260 to our current level of $13,480 (up 1.6%). By the way, a quick reminder, about 62K worth of Bitcoin options are set to expire today—let’s see if that moves the market over the weekend.

ETH, as it has for a while now, is unfortunately not following King Coin up. Yesterday we were down 0.7%, from $389 to $386. Other alts like LINK, LTC, BCH, or DASH paint a similar picture. Some more volatile coins dropped even further—I’m thinking of XMR, XTZ, ADA, or DOT.

Away from price action, there are quite a lot of developments, coming in daily. Yesterday we saw the announcement of Fidelity’s custody services (already offered in the US) expanding into Asia—naturally a positive sign that demand is there and growing globally.

On less positive news, a leaked document originating from Binance outlines an elaborate scheme to evade Bitcoin regulators. In light of what happened to Bitmex and OKEx, one only hopes it doesn’t trigger local officials to dig in and hinder operations on what remains the biggest exchange.

Lastly, as a quick information nugget, Iran is changing the law to be more flexible in regards to the use of Bitcoin transactions for imports, making it the first country in the world to use cryptocurrencies at a state level for value exchange.

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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.