CRYPTO week ahead: October 10 – 16
Last week in the news
The negative trend on the US equity markets continued after the output of jobs figures on Friday. It looks like the FOMC measures are starting to reflect in the real economy. The crypto markets continue to be side traded, with Bitcoin ending the week modestly below 20K, while Ether is still holding above 1.3K.
Based on Friday`s data it seems that FOMC measures in terms of increased interest rates and squeeze of liquidity from the market are finally beginning to be reflected in the real economy. Jobs data posted on Friday show modest drop in nonfarm payrolls to 263K from 275K estimated by the market. At the same time, the unemployment rate in the US reached 3.5% in September, down from 3.7% during the previous month. This decrease is mostly coming from the decreased size of the labour force by 57K.
The old topic about crypto mining costs became for one more time a spotlight theme in the news. Namely, as the so-called crypto winter continues to hit markets, there is again discussion whether crypto miners with high mining costs will be able to survive at current crypto prices. The discussion was triggered as one of the largest bitcoin mining firms, Compute North, filed for bankruptcy during September this year. The company was hardly hit by the drop in bitcoin price by more than 50%, increasing prices of electricity and, as they noted, issues with its major funds provider. In case the bitcoin price continues to decline, analysts are noting a high probability that more firms will likely go bankrupt due to the same reasons. On the other side, Grayscale, an asset management company, formed a co-investment vehicle, Grayscale Digital Infrastructure Opportunities which is partnering with its Group company Foundry, a digital asset mining firm, in order to support its mining business during the crypto winter period.
According to a press release, the crypto exchange Binance acquired a licence to operate in Kazakhstan, from the Astana Financial Services Authority. This provides a legal opportunity for Binance to provide digital assets and custody services to its customers on Astana International Financial Canter platform. It is also interesting that Binance was one of the companies which helped Kazakhstan authorities to develop digital assets regulation in this country.
As per press release from the hedge fund Two Sigma Securities, the fund will align with Chainlink in order to provide market data to Chainlink, which includes, swaps, options and other information related to derivatives. As it has been noted by the fund, the goal of this cooperation is to support building a healthy ecosystem around digital assets.
Crypto market cap
Second flat week on the crypto market despite weaker than expected macroeconomic data in the US, is showing that investors still see a potential in this market. Latest released US jobs market data shows a slowdown in the jobs creation, but at the same time, average hourly earnings rose 0.3% for the month and 5% on a yearly basis. Analysts are estimating that this could provide a space for FED for an additional 75bps rate hike at the next FOMC meeting.
For the last two weeks, the crypto market is calming down. Total crypto market capitalization remained relatively flat, with an increase of 1% or 99B on a weekly basis. Total daily trading volumes are cooling down, dropping to the level of
95B on a daily basis from 105B during the previous week. Total funds outflow from the beginning of this year remained almost unchanged, holding at level of 1.276B, which is a total drop of 58%.
Quite modest increase in total crypto market capitalization, of some 99B during the previous week, was led by modest surge in price of the Bitcoin. BTC moved to the upside by more than 1% or 4.5B. Ether also managed to gain 1.5B in market cap, which is less than 1%, while XRP had one more good week, in which the coin managed to increase its market cap by additional 1.9B or almost 8%. Other altcoins performed in a relatively mixed mode. On one side there are coins who managed to increase their market capitalization, like Maker, who surged by 14.8% and is followed by Polygon, with an increase of 7% in market cap on a weekly basis. Good week also had Stellar, with an increase in market cap by almost 5%. On the other side are several coins who lost some of their value during the week, like EOS and MIOTA with a drop of 7% both, and Algorand with a drop in market cap of almost 5%. As for coins in circulation, Algorand and Filecoin continue to increase their circulating coins both by 1.2% on a weekly basis, while Tether continues its modest recovery from a significant drop, by adding 0.6% during the previous week.
Crypto futures market
The crypto futures market was traded relatively flat during the previous week, which was in line with the developments on the spot market. BTC short term futures ended the week without significant changes compared to the end of the previous week. As for longer term maturities, they have increased by more than 2%. On a positive side is that prices for the end of the next year are still holding above 20K.
Although there had not been much changes in short term ETH futures, prices for longer maturities were up by more than 1%. Still, regardless of small movements, all prices for all maturities continue to be traded with tiny spread, within a range from $1.327 up to $1.373. It shows that the market continues to be on hold when it comes to the future value of the ETH.
The negative trend on the US equity markets continued after the output of jobs figures on Friday. It looks like the FOMC measures are starting to reflect in the real economy. The crypto markets continue to be side traded, with Bitcoin ending the week modestly below 20K, while Ether is still holding above 1.3K.
Based on Friday`s data it seems that FOMC measures in terms of increased interest rates and squeeze of liquidity from the market are finally beginning to be reflected in the real economy. Jobs data posted on Friday show modest drop in nonfarm payrolls to 263K from 275K estimated by the market. At the same time, the unemployment rate in the US reached 3.5% in September, down from 3.7% during the previous month. This decrease is mostly coming from the decreased size of the labour force by 57K.
The old topic about crypto mining costs became for one more time a spotlight theme in the news. Namely, as the so-called crypto winter continues to hit markets, there is again discussion whether crypto miners with high mining costs will be able to survive at current crypto prices. The discussion was triggered as one of the largest bitcoin mining firms, Compute North, filed for bankruptcy during September this year. The company was hardly hit by the drop in bitcoin price by more than 50%, increasing prices of electricity and, as they noted, issues with its major funds provider. In case the bitcoin price continues to decline, analysts are noting a high probability that more firms will likely go bankrupt due to the same reasons. On the other side, Grayscale, an asset management company, formed a co-investment vehicle, Grayscale Digital Infrastructure Opportunities which is partnering with its Group company Foundry, a digital asset mining firm, in order to support its mining business during the crypto winter period.
According to a press release, the crypto exchange Binance acquired a licence to operate in Kazakhstan, from the Astana Financial Services Authority. This provides a legal opportunity for Binance to provide digital assets and custody services to its customers on Astana International Financial Canter platform. It is also interesting that Binance was one of the companies which helped Kazakhstan authorities to develop digital assets regulation in this country.
As per press release from the hedge fund Two Sigma Securities, the fund will align with Chainlink in order to provide market data to Chainlink, which includes, swaps, options and other information related to derivatives. As it has been noted by the fund, the goal of this cooperation is to support building a healthy ecosystem around digital assets.
Crypto market cap
Second flat week on the crypto market despite weaker than expected macroeconomic data in the US, is showing that investors still see a potential in this market. Latest released US jobs market data shows a slowdown in the jobs creation, but at the same time, average hourly earnings rose 0.3% for the month and 5% on a yearly basis. Analysts are estimating that this could provide a space for FED for an additional 75bps rate hike at the next FOMC meeting.
For the last two weeks, the crypto market is calming down. Total crypto market capitalization remained relatively flat, with an increase of 1% or 99B on a weekly basis. Total daily trading volumes are cooling down, dropping to the level of
95B on a daily basis from 105B during the previous week. Total funds outflow from the beginning of this year remained almost unchanged, holding at level of 1.276B, which is a total drop of 58%. Quite modest increase in total crypto market capitalization, of some 99B during the previous week, was led by modest surge in price of the Bitcoin. BTC moved to the upside by more than 1% or 4.5B. Ether also managed to gain 1.5B in market cap, which is less than 1%, while XRP had one more good week, in which the coin managed to increase its market cap by additional 1.9B or almost 8%. Other altcoins performed in a relatively mixed mode. On one side there are coins who managed to increase their market capitalization, like Maker, who surged by 14.8% and is followed by Polygon, with an increase of 7% in market cap on a weekly basis. Good week also had Stellar, with an increase in market cap by almost 5%. On the other side are several coins who lost some of their value during the week, like EOS and MIOTA with a drop of 7% both, and Algorand with a drop in market cap of almost 5%. As for coins in circulation, Algorand and Filecoin continue to increase their circulating coins both by 1.2% on a weekly basis, while Tether continues its modest recovery from a significant drop, by adding 0.6% during the previous week.
Crypto futures market
The crypto futures market was traded relatively flat during the previous week, which was in line with the developments on the spot market. BTC short term futures ended the week without significant changes compared to the end of the previous week. As for longer term maturities, they have increased by more than 2%. On a positive side is that prices for the end of the next year are still holding above 20K.
Although there had not been much changes in short term ETH futures, prices for longer maturities were up by more than 1%. Still, regardless of small movements, all prices for all maturities continue to be traded with tiny spread, within a range from $1.327 up to $1.373. It shows that the market continues to be on hold when it comes to the future value of the ETH.
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