Morning‌‌ ‌‌Update—October 4th—Macro and Crypto Markets

It’s an interesting time to be in and look at markets. We’re entering the fourth quarter, typically a good time for investors as people expect more spending and good year-end results. But, it’s worth noting there’s some overhang, namely the Fed tapering, rising interest rates which last week touched 1.56%, and also just covid that is -let’s not forget it- still a thing.

For now, though, investors seem to be bolstered by a new oral treatment for covid. Equity index futures rose in late night trading yesterday.

Alongside it, crypto is feeling strong. People are ok buying risk. After the 10% up candle we saw on Friday, Saturday and Sunday, BTC held up, we’re currently sitting above $48,000. The question now remains whether we can push through 50K. Personally, I’m optimistic and think the lower 40K we rebounded from did mark a short or medium-term bottom.

If you’re holding alts, you’re probably happy to see the BTC dominance edge down, the upper 42 to the lower 42 and potentially going lower. 

Among the best performers these days, I’ve followed the wild ride that is DYDX and WOO, both rising about 70% in the past seven days, which considering the rest of the crypto space is massive. UNI also gained, along with SOL and XTZ. 

While the above outperformers hint at an enthusiasm for decentralised exchanges, it was interesting to hear over the weekend that 1INCH (a DEX aggregator) actually started blocking US trades, presumably preparing a separate American platform that can then be the focus of regulators.

Speaking of regulators, it’s actually nice to hear Senator Gensler reiterate support for the futures-based BTC ETFs that could be coming through in the next quarter.

We’ve actually seen more ETF’s being added in Canada with, last week, the first-ever multi-crypto ETF.

Last, but I hope not least, there’s an interesting chart which you can see below, showing the increased OTC flows and the movement towards private/cold wallets, suggesting less supply of BTC and less selling pressure. Are we headed for another bullish quarter?

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