CRYPTO week ahead: October 31 – November 06
Last week in the news
A green week on financial markets was supported by increased investors confidence that the FED's monetary tightening might ease in the coming period. Still, the risks remain. The Dow Jones index closed 800 points higher on a weekly basis. The crypto market followed the optimism, with Bitcoin again reaching 20K and Ether was back to 1.6K.
As of Thursday the European Central Bank raised its reference interest rates by additional 75 bps. As noted in a statement, more increases are probable in the coming period. Market reaction was relatively flat, considering that investors are expecting recession across Europe, supported by the heavy increase in gas and food prices. As per latest published data, inflation is continuing to rise, reaching more than 10% in Germany, Europe's strongest economy. At the same time, personal consumption expenditure prices in the US rose 0.3% in September, or 6.2% compared to the same period a year ago. This indicator is closely watched by the FED as one of the indicators of the inflation in the country. It was a positive signal for financial markets, which are currently pricing another rate hike by FED of 75bps, after which, the FED should slow down with further rate increases.
One of the most quoted news during the previous week is that Elon Musk is finally a new owner of Twitter. It has been a bit of a chaotic first day of a “Chief Tweet” as several highly positioned officers have left the company. However, the news was positive for DOGE, as the coin surged on the news to 15 cents from 6 cents previously traded. Such a move was sort of expected taking into account the previous DOGE-Musk saga on Twitter. At the same time, Binance CEO, Changpeng Zhao, tweeted that his company participated with $500 million in the Twitter takeover deal.
A digital bank Revolut gained approval from the Financial Conduct Authority in the UK to offer crypto services to its clients. Revolut is currently offering more than 30 digital currencies for trading and has a customer base of more than 20 million clients.
El Salvador became the first country in the world to accept Bitcoin as a legal tender, now helping the city of Lugano in Switzerland to do the same. As per news reports El Salvador and Lugano signed a memorandum of understanding for adoption of Bitcoin locally. In this sense, El Salvador will open a “bitcoin office” in Lugano with the aim to work on further promotion of bitcoin in Switzerland and across Europe.
Crypto market cap
A glimpse of optimism was spread on financial markets during the previous week. As latest figures show that the inflation is slowing down, the markets have priced another FED's rate hike at 75bps, in expectation that potential further interest rate increases might be at a lower pace. For investors, this would mean the end of monetary tightening and also an end to withdrawal of funds from the markets. After almost five months of sort of side trading, investors on the crypto market finally decided that it is time to come back. At least some of them. It should be considered that risks from the global macroeconomic environment are still high, in which sense, the recovery might be slow, but it will go in a positive direction. Total crypto market capitalization was increased by 12% during the previous week, adding 108B to total cap. Investors are back on the market, which is expressed through almost doubled daily trading volumes, which reached 154B on a daily basis. Total funds outflow from the beginning of this year is modestly decreased to the level of 1.194B, decreasing total drop to 55%.
Almost all coins were traded within green territory during the previous week. Total crypto market capitalization increase during the week was led by major coins, BTC, ETH and BNB. These three coins participated by more than 70% in total crypto market cap increase during the week. The absolute winner was ETH, with an increase in market cap by 24%, adding
39B to its total capitalization. ETH was led by BTC, which added 
32B on a weekly basis, or almost 9%. BNB managed to gain additional 66B in market cap or more than 13%. In relative terms, DOGE was without any competition, as the coin increased its cap by an incredible 123% w/w, adding almost 110B to market cap. This is only a short term move, as it has been strongly supported by Musk`s takeover of Twitter. Also in relative terms, Solana had a good week with a cap increase by 22B or 19% and was followed by ADA, with a surge in cap by 24%, adding 33B to it. Rare coins which lost some of their value were Bitcoin Gold, with a drop in cap by almost 10%, and interestingly, Maker, with an decrease in cap of 9%.
As for coins in circulation, there has been modest change with Filecoin, which continues to increase its coins in circulation, this time by 1.4%. Tether also continues its quite modest recovery, adding 0.8% of circulating coins on a weekly basis. Two weeks ago XRP decreased its coins in circulation by 0.2%, but during the previous week, the coin managed to increase the number by 0.4%, increasing the circulating coins to above 50 billion.
Crypto futures market
Since the investor’s optimism is back on the markets, so are crypto futures traded higher during the previous week. Prices of the futures are showing that the market is slowly recovering, but the risks are still high. This conclusion comes from the evidence that the price level for all maturities is higher, but still the maturity curve remains flat. There is a very tight difference between short and long term maturities, showing that investors are still not sure regarding futures prices of both BTC and ETH.
BTC short term futures were up by more than 6%, while longer term surged by more than 8%. Maturities at December 2023 ended the week at level above 21K.
ETH futures had a stronger surge during the previous week. Short term maturities were up by more than 18%, with December this year ending the week above 1.5K. Longer term maturities surged by 22.5% on average. What continues to be strongly evident with ETH futures are the very tight price range between short and long term maturities. Previous week this range was around 40 points, between $1.538 and $1.580.
A green week on financial markets was supported by increased investors confidence that the FED's monetary tightening might ease in the coming period. Still, the risks remain. The Dow Jones index closed 800 points higher on a weekly basis. The crypto market followed the optimism, with Bitcoin again reaching 20K and Ether was back to 1.6K.
As of Thursday the European Central Bank raised its reference interest rates by additional 75 bps. As noted in a statement, more increases are probable in the coming period. Market reaction was relatively flat, considering that investors are expecting recession across Europe, supported by the heavy increase in gas and food prices. As per latest published data, inflation is continuing to rise, reaching more than 10% in Germany, Europe's strongest economy. At the same time, personal consumption expenditure prices in the US rose 0.3% in September, or 6.2% compared to the same period a year ago. This indicator is closely watched by the FED as one of the indicators of the inflation in the country. It was a positive signal for financial markets, which are currently pricing another rate hike by FED of 75bps, after which, the FED should slow down with further rate increases.
One of the most quoted news during the previous week is that Elon Musk is finally a new owner of Twitter. It has been a bit of a chaotic first day of a “Chief Tweet” as several highly positioned officers have left the company. However, the news was positive for DOGE, as the coin surged on the news to 15 cents from 6 cents previously traded. Such a move was sort of expected taking into account the previous DOGE-Musk saga on Twitter. At the same time, Binance CEO, Changpeng Zhao, tweeted that his company participated with $500 million in the Twitter takeover deal.
A digital bank Revolut gained approval from the Financial Conduct Authority in the UK to offer crypto services to its clients. Revolut is currently offering more than 30 digital currencies for trading and has a customer base of more than 20 million clients.
El Salvador became the first country in the world to accept Bitcoin as a legal tender, now helping the city of Lugano in Switzerland to do the same. As per news reports El Salvador and Lugano signed a memorandum of understanding for adoption of Bitcoin locally. In this sense, El Salvador will open a “bitcoin office” in Lugano with the aim to work on further promotion of bitcoin in Switzerland and across Europe.
Crypto market cap
A glimpse of optimism was spread on financial markets during the previous week. As latest figures show that the inflation is slowing down, the markets have priced another FED's rate hike at 75bps, in expectation that potential further interest rate increases might be at a lower pace. For investors, this would mean the end of monetary tightening and also an end to withdrawal of funds from the markets. After almost five months of sort of side trading, investors on the crypto market finally decided that it is time to come back. At least some of them. It should be considered that risks from the global macroeconomic environment are still high, in which sense, the recovery might be slow, but it will go in a positive direction. Total crypto market capitalization was increased by 12% during the previous week, adding 108B to total cap. Investors are back on the market, which is expressed through almost doubled daily trading volumes, which reached 154B on a daily basis. Total funds outflow from the beginning of this year is modestly decreased to the level of 1.194B, decreasing total drop to 55%.
Almost all coins were traded within green territory during the previous week. Total crypto market capitalization increase during the week was led by major coins, BTC, ETH and BNB. These three coins participated by more than 70% in total crypto market cap increase during the week. The absolute winner was ETH, with an increase in market cap by 24%, adding
39B to its total capitalization. ETH was led by BTC, which added 32B on a weekly basis, or almost 9%. BNB managed to gain additional 66B in market cap or more than 13%. In relative terms, DOGE was without any competition, as the coin increased its cap by an incredible 123% w/w, adding almost 110B to market cap. This is only a short term move, as it has been strongly supported by Musk`s takeover of Twitter. Also in relative terms, Solana had a good week with a cap increase by 22B or 19% and was followed by ADA, with a surge in cap by 24%, adding 33B to it. Rare coins which lost some of their value were Bitcoin Gold, with a drop in cap by almost 10%, and interestingly, Maker, with an decrease in cap of 9%.As for coins in circulation, there has been modest change with Filecoin, which continues to increase its coins in circulation, this time by 1.4%. Tether also continues its quite modest recovery, adding 0.8% of circulating coins on a weekly basis. Two weeks ago XRP decreased its coins in circulation by 0.2%, but during the previous week, the coin managed to increase the number by 0.4%, increasing the circulating coins to above 50 billion.
Crypto futures market
Since the investor’s optimism is back on the markets, so are crypto futures traded higher during the previous week. Prices of the futures are showing that the market is slowly recovering, but the risks are still high. This conclusion comes from the evidence that the price level for all maturities is higher, but still the maturity curve remains flat. There is a very tight difference between short and long term maturities, showing that investors are still not sure regarding futures prices of both BTC and ETH.
BTC short term futures were up by more than 6%, while longer term surged by more than 8%. Maturities at December 2023 ended the week at level above 21K.
ETH futures had a stronger surge during the previous week. Short term maturities were up by more than 18%, with December this year ending the week above 1.5K. Longer term maturities surged by 22.5% on average. What continues to be strongly evident with ETH futures are the very tight price range between short and long term maturities. Previous week this range was around 40 points, between $1.538 and $1.580.
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