BTC Rallies As “Uptober” Memes Itself Into Reality
Gm.
Buenos dias y feliz viernes…I mean, good morning and happy Friday! Apologies for missing last week’s newsletter as I was down in Mexico for a few days catching some sun before an important Q4 kicked off.
We couldn’t have asked for a better start to the month as BTC has rallied over 26% the past 7 days (maybe I should go to Mexico more often). Honestly though, it’s a very nice change writing to you all when BTC is looking bullish. I remember when I started writing last year, every week was a new all time high and there was something new to celebrate. We have gone through a lot since and we deserve a pat on the back for being patient hodlers through easily one of the toughest years for BTC.
Is this the start of the next leg up of a legendary bull run like crypto Twitter thinks it is? Are we really going to see $100k+ BTC by the end of the year? I’m not sure. All I know is that BTC has not only survived, but thrived under truly extraordinary pressures from all angles since May (feels like years ago, eh?) and we’re sat here today only ~14% from all time highs. Remarkable.
What we saw at the desk
Uptober hasn’t just been kind to the price of Bitcoin and the broader crypto market. Our desk is on track to have the biggest month we’ve ever had bringing in ~$30m in trading volume in the first week of October.
The vast majority of volume has been on the buy side with BTC leading the way by a wide margin, ETH following behind, and more exotic pairs making up the rest as some clients are leaning into the tail end of the market hoping to capture outsized gains assuming a prosperous fourth quarter.
Why should we be bullish?
Aside from the fact that Bitcoin has evolved into this weird AI life form that is slowly taking over the world and getting stronger and stronger each day — we, as early adopters of this new technology (yes, you’re still very early), have a lot to be excited about.
Firstly, how about the fact that US Senator Lummis who sits on the Senate Banking Committee disclosed this week that she bought up to $100k in BTC?
Common sense tells me that as these old fogeys wash out of their positions of power and newer generations move into their positions, we’ll be seeing a lot more of this. Yeah, welcome to the future.
Why don’t we have a quick looksy at what’s going on with network security after the China ban.
Oh, it’s recovering extraordinarily well? Hell yeah it is. After being karate chopped in the throat by China — who controlled over 60% of the network — Bitcoin’s TH/s has nearly fully recovered to all time highs. Amazing.
BTC usage in El Salvador is on the rise. While the first world is suffering from inflation (unless you’re a bitcoiner, then everything around you just gets cheaper) millions of Salvadorans are experiencing a deflationary environment in real time. Since the BTC airdrop marking the start of bitcoin becoming legal tender in El Salvador, folks are up at least 10%, some up to 35% depending on when they decided to onboard onto the Chivo wallet.
While there was and still is pushback and hiccups in this great experiment, things are moving in the right direction. Which country will be next?
Regulations in this space have become top of mind after what we saw in China over the past few months. This week, SEC Chair Gensler told the House Committee on Financial Services that the SEC has no plans to ban crypto.
But when ETF? I’ve been waiting for a Bitcoin ETF for over 4 years now. Each year there’s always a rumour or two but I have never seen this level of excitement and anticipation of an approval. When something is this loud it makes me think that we’re close… fool me once, shame on… I’m not getting my hopes up.
Lastly, Bitcoin is back above a $1 trillion market cap.
In case you missed it…
- Soros family office owns Bitcoin https://www.theblockcrypto.com/post/119609/george-soros-family-office-bitcoin-fitzpatrick
- SEC Chair promises no China style ban on crypto https://www.zerohedge.com/crypto/crypto-rallies-secs-gensler-promises-no-china-style-bitcoin-ban-us
- US Bank launched Bitcoin custody service to meet institutional demand https://www.cnbc.com/2021/10/05/bitcoin-custody-us-bank-launches-service-as-institutions-race-to-cater-to-crypto-demand.html
- JP Morgan says clients are ditching gold for BTC as inflation hedge https://bitcoinmagazine.com/.amp/business/jpmorgan-bitcoin-better-inflation-hedge-than-gold?__twitter_impression=true
- Must read: Our friend Greg Foss writes an epic piece for Bitcoin Magazine https://bitcoinmagazine.com/markets/bitcoin-value-in-credit-default-swaps
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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.
