Fiat: Down Only.
“Our focus is on helping bitcoin to become the native currency for the internet..we have a number of initiatives towards that goal” — Square CEO, Jack Dorsey
Lately, I’ve been feeling that these weekly recaps are too long. Moving forward, I’m going to (try to) keep them short(er) and sweet. But man, there is so much going on. The last few weeks have felt like years — crypto “weekyears” are certainly a thing.
This week, this happened:
and then:
As inflation becomes harder and harder to ignore, we will see the education gap close for regular folks, and subsequently, meaningful changes at the top.
Out with the old, in with the new.
Less of this:
More of this:
What is this? A picture book!?
What we saw at the desk — by Dan Wright
Sorry Dan, let me bud in before you start for a quick note — October was another record breaking month for us with over $69,500,000 traded! Thank you so much to all of our clients for the support.
Okay, back to you Dan…
It was another heavy volume week for us here on the desk to start the month.We saw a lot of buying of both ETH and SOL which made new highs for the year. SOL was the big winner, up 17% this week. We also saw a lot of interest from clients asking about Metaverse related coins with some rallying hundreds of percent over the week.
USD is up going into the first Friday of the month. Could be a lot of volatility in the market with US and Canadian employment figures due out and BTC options expiring this morning. BTC/USD has held its own this week and stayed above 61k support with a possible breakout coming soon as we see a flag pattern on the daily chart below.
Bitcoin is eating gold’s shorts.
As another week comes to a close, bitcoin’s price is hovering around all time highs. It’s not just bitcoin, literally everything is at or near all time highs. This is all happening while the broader macro backdrop is screaming of inflationary concerns.
We heard from Fed Chair Powell this Wednesday — what’s typically a nail biter, really didn’t feel like such (in my opinion). He unveiled the Fed’s plan to slow asset purchases (they will begin to taper) beginning this month but, as to not disrupt his buddies on Wall Street, he emphasized that the end or slowing of bond buying would not mean a rush to raise interest rates any time soon. Party on!
He also had the gumption to reiterate the central bank’s position that the current inflation spike remains “transitory.” However, the inflation narrative is still dominating the headlines and people all over the world are really feeling it. Gas prices, energy prices, and food prices are uncomfortably inching up globally. The goal of one day buying a house is quickly running away from folks. Supply chain constraints and a shrinking labor force has us all wondering how the hell we’re going to find our way out of this mess.
While rates in countries like Turkey, Brazil, Mexico, Russia and South Africa have started to surge in response to the macro backdrop, fears of this happening in the U.S. and Europe seem to be rather abysmal. It appears that investors understand that we’re not out of the woods but they are still “all in” as we can’t be sure how long the “party” will persist. Amongst intense scrutiny and extreme shocks to the network, bitcoin has held up quite well in this fragile environment. Looking at gold over the same time horizon, the performance ranges from poor to downright dreadful as prices continue to languish below all-time highs. People need to start asking themselves, why own gold over bitcoin, especially during this period of persistent inflation?
Bitcoin is obviously a new asset compared to other assets, and especially to gold. However, it bolsters an unmatched track record as the best performing asset over the past decade. It’s adoption rate is up and to the right and growing extremely fast. On the gold side, with demographics and wealth shifting toward the young, the question is who will be left to buy grandpa’s gold?
In case you missed it…
- Now you never have to sell your Bitcoin https://www.coindesk.com/business/2021/11/03/coinbase-users-can-borrow-up-to-1m-with-bitcoin-as-collateral/
- Aussie Commonwealth Bank to allow its 6.5m customers access to crypto https://www.afr.com/companies/financial-services/cba-to-add-crypto-to-its-banking-app-20211102-p595da
- New NYC Mayor, Eric Adams is a Bitcoiner https://fortune.com/2021/11/03/mayor-elect-eric-adams-hopes-to-turn-new-york-city-into-a-crypto-friendly-city/
- $440 bn asset manager Jefferies reduces gold exposure, buys BTC https://u.today/jefferies-wood-sells-more-gold-for-bitcoin
- When spot BTC ETF?
https://www.bloomberg.com/news/articles/2021-11-04/bitcoin-bulls-see-trillions-of-inflows-when-etf-wins-approval - DCG sells $700m in stock at a $10bn valuation https://www.theblockcrypto.com/linked/122781/dcg-sells-700-million-in-stock-deal-nabbing-10-billion-valuation
- Bank of America COO seems bullish on crypto & bank relations https://blockworks.co/bank-of-america-coo-crypto-could-add-value-to-banks/
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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.
