BTC Down Ahead Of Options Expiry & Jackson Hole Symposium

After what looked like a meaningful move through $50k and a subsequent renewed burst of euphoria in the crypto markets, BTC had a rough week slumping to $46k and change. Aside from a natural sell off after a big move up, investors are concerned about the ramifications of a taper announcement by the Fed today at Jackson Hole. However, escalation of the Delta variant cases in the US and globally make it a lot less likely — I will certainly be tuning in. Also, with $2bn in BTC options expiring today, we are also seeing typical monthly pre-expiry price volatility. Never a dull moment!

What we saw at the desk

Although this week was quite busy, I think trading volume came second to new clients onboarded. It is pretty clear that there is still a lot of interest in the market as we’re seeing an onslaught of new account openings from HNWIs and corporates looking to enter at these levels.

While there was a higher number of trades on the buy side this week, we noticed a few larger trades on the sell side that pushed the desk to a net seller up until this morning.

The El Salvadorian Countdown

I’m not talkin bout a dance move, drink, or wrestling finish — I’m talkin bout the fact that in less than two weeks, El Salvador will become the first country to adopt bitcoin as a national currency.

The side of me that just simply expects things not to go as planned has alarms of skepticism ringing when I think about this. Even though I personally know a team with boots on ground grinding to get the infrastructure in place by the deadline, there’s still something that tells me it’s too good to be true. So, if I feel that way knowing what I know, there’s no way success is priced in.

Although the move up from $30k is a positive sign that the bull market is still intact, I think we might need some big news — a catalyst to bring us to the promised land. A positive outcome for this experiment could certainly be it.

In preparation for the date (September 7th) that marks bitcoin as legal tender, President Nayib Bukele announced last weekend that the nation is rolling out 200 ATMs and preparing 50 bank branches across the El Salvador to allow residents to exchange bitcoin for fiat easily.

We also got a sneak peek at the national bitcoin wallet, Chivo, or “Cool”. It’s a state-backed wallet that would be compatible with the new ATMs and would be interoperable with any existing crypto wallet.

On September 7th, Salvadorans will be able to download the government’s Chivo digital wallet, enter their ID number and receive $30 in Bitcoin

Okay…starting to feel a little more real.

Central and South American countries are eagerly waiting to see if El Salvador’s adoption of bitcoin as a parallel legal tender cuts the cost of remittances, an important source of income for millions of people.

Will the first domino successfully fall?

In case you missed it…

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Satstreet serves private Canadian clients including some of the largest Bitcoin mining operations, institutions, and high net worth individuals. Satstreet has raised initial funding from Round13 Capital and several prominent investors.

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