Since Bitcoin's momentous rise this holiday season, alt coins have been making noise. What is driving this alt season, and what coins have been leading the way?
Today is what you might call a bad news day. Bitcoin's march higher has been brought to an abrupt end, with prices down 16%. This time last week, Bitcoin was trading $28,000. It's amazing how short-term memories are clouded by a decreasing profit and loss statement! Bitcoin's failure to push higher over the weekend has seen profit taking cascade into auto-liquidations of leveraged longs to the tune of $2.7B.
We believe the emergence of cryptocurrency derivatives is the inevitable evolution of the digital asset class and should contribute to reductions in volatility and enhancing market efficiency.
While traditional markets are up, crypto markets are up more. With the progressing political situation in the US (suggesting further stimulus) and the reassurance of vaccine arrivals in the coming months, markets are enjoying a risk on tilt, pushing equities to all-time highs. The S&P rose 1.5% to $3,800. The Nasdaq jumped 2.5% on the session. The 10-year yield continued its ascension, now at around 1.08%. The dollar experienced a quick bounce, but is at decidedly abysmal levels still.
Another day, another new all-time high. When prices break into new discovery phases, it's best not to try and work out where it might stop. But, we are human, and we like to ponder these things. Given we only have the 'big numbers,' (40,000, 50,000 etc.) to offer us markers, it's worth considering if the total market cap of Bitcoin is going to act as break on price appreciation.
Many virtual currency exchanges advertise the ability to trade products with leverage. In traditional finance, there are a number of popular leveraged products, such as ETFs. An ETF is a product that moves as a function of the underlying factor and the leverage factor. For example, an ETF that has 5x leverage will lose or gain 5% if the underlying asset moves by 1%. Leverage defines your position’s exposure to the underlying asset class.
EQUOS today announces the launch of its EQUOS BTC Perpetual Futures (BTC/USDC (F)), the first in a suite of innovative derivative products that will later include options and dated futures. EQUOS is poised to be at the forefront of exponential growth expected in the crypto derivatives markets in the coming years.
While Covid cases continue to rise and countries around the world extend or impose stricter lockdowns, investors still turned risk-on yesterday. The S&P and Nasdaq were up 0.7% and 1.2%, respectively. As you would expect, treasuries were sold, pushing the 10-year yield back to 0.95%. The dollar keeps losing value as the index falls to multi-year lows. Conversely, gold continues to rise, currently closing at $1,950.
With the democrats winning not only the Senate, but also the whole Congress, certifying the electoral college results, cohorts of Trump supporters travelled to downtown Washington to protest. However, markets weren’t affected by the tense situation. The S&P is up 1% and treasuries were sold en masse, pushing the 10-year yield above 1% (the first time since before March of last year). Gold took a breather and pulled back, currently at $1,920.
With rising concerns over the new coronavirus strain and the feeling that vaccines might not arrive soon enough, investors are behaving risk-off. Both the S&P and the Nasdaq were down almost 2%, and treasuries were bought. The dollar, which continues to fall, bounced quickly. Gold rose higher still, now at $1,945.