CRYPTO week ahead: November 6 – 13
Last week in the news
The FOMC raised interest rates by additional 75 bps, implying the possibility that future increases might slow down. Such rhetoric brought back a bit of positive sentiment on financial markets. Both EU and US stocks gained during the week. The crypto market followed the path, with BTC ending the week modestly above $21K, while Ether is holding above $1.6K.
As it was expected, the FED increased its interest rates by additional 75 bps last week, as markets were anticipating. In a statement, after the meeting FED Chair Powell commented FED expectations for interest rates hike to slow down in the coming period. However, market analysts are noting that if inflation remains persistent, there is some possibility for the FED to continue with higher rate increases. The US equities modestly dropped on Friday, after the US non-farm payroll figures were released. The figures show that the US economy created 261K new jobs in September, which is more from 200K the market was expecting. At the same time, the unemployment rate was up by 0.2% to 3.7% in September from 3.5% posted previously. The results are sort of mixed, showing that the FED`s measures are slowly transferring to the real economy. This adds to the probability that FED might indeed slow its rate hikes in the coming period. At this moment investors switched their attention to the consumer price index report which will be released during the next week.
As CNBC is reporting, there is high optimism among crypto investors in the UK, that the new prime minister Rishi Sunak might support the crypto industry in the UK. This optimism comes from Sunak`s former comments of the crypto among which was his “grand plan” implying that the UK should become the world`s hub for the crypto and blockchain industry. Considering that all Sunak`s comments were made before he took the role of the PM, it shall be seen if this stance on crypto has been changed.
The Head of monetary authority in Singapore, Ravi Menon, stated that his country still has the aim to be a hub for digital assets. However, he disapproves of trading and speculation with cryptocurrencies, as many Singapore`s small investors suffered severe losses during the recent so-called crypto winter, and collapse of Terra Luna. On the other hand, Manon`s statement for banning crypto trading was criticised by the CEO of Coinbase, Brian Armstrong, noting that “those two things are incompatible '' in his opinion.
Crypto market cap
Financial markets had another modest recovery during the previous week. Modest optimism was supported by the latest FED's interest rate increase by 75 bps, with FED`s rhetoric that future increases might be lower from several previous increases. However, not all investors are confident regarding the state of the US economy. There are still those who are waiting for clear confirmation that the US inflation is on a down path, which would be a certain sign that the FED will halt further rate increases. The crypto market capitalization was modestly increased during the previous week by 2%. The market managed again to reach levels above $1 trillion, where the market last time was in September this year. Daily trading volumes continue to surge, reaching $187B on a daily basis, compared to $154B a week before. Total funds outflow from the beginning of this year was further modestly decreased to the level of $1.173B, which is a decrease of 54%.
Majority of coins gained during the previous week. Total market capitalization increase was led by BTC and BNB. The main crypto on the market gained almost 2% during the previous week, increasing its market cap by $7.6B. BTC was led by Binance Coin, which had a strong surge in total market cap by more than $7B, or 15% on a weekly basis.
Polygon also had a very good week, since the coin managed to increase market cap by $2B, which is an increase of 26%. XRP was also in a group of coins which increased market cap by $1B, as it surged a market cap by 4.5%. Other altcoins which performed well in a relative sense during the week were Litecoin, with a market cap increase of 21%, LINK with a surge of 19%, Algorand and Filecoin, with an increase in cap by 28% and 13% respectively. There are several coins which lost some of their value during the week, like DOGE, who lost almost 5% on news related to Elon Musk`s issues with Twitter management. Cardano also performed in red during the week, with a drop in market cap by 2%. As for coins in circulation, Tether continues recovery with additional 0.6%, while Filecoin continues with gains in coins, adding 2.7% to the total coins in circulation for another week in a row.
Crypto futures market
The crypto futures market is sort of a reflection of both spot market and investor`s current sentiment regarding future expectations on the performance of coins. During the previous week, there have been some changes in the slope of the maturity curve for both BTC and ETH futures, however, a bit to a negative side. For some time now, futures prices are showing that investors are not expecting any significant increase in the value of coins, at least till the end of the next year.
In line with the spot market developments, BTC futures were traded higher by some 3% for maturities until January 2023. From March next year, investors are expecting for the price of BTC to be lower by some 2% from a week before. Maturities for December 2023 dropped to the level modestly above $20K, while previous week these prices were holding above $21K.
As for ETH futures, the situation is similar. Short term futures were traded up by some 7%, with December this year ending the week at level of $1.64K. Longer term futures remained relatively flat, with a modest drop of less than 1%. December 2023 continues to hold at $1.55K for the last two weeks.
The FOMC raised interest rates by additional 75 bps, implying the possibility that future increases might slow down. Such rhetoric brought back a bit of positive sentiment on financial markets. Both EU and US stocks gained during the week. The crypto market followed the path, with BTC ending the week modestly above $21K, while Ether is holding above $1.6K.
As it was expected, the FED increased its interest rates by additional 75 bps last week, as markets were anticipating. In a statement, after the meeting FED Chair Powell commented FED expectations for interest rates hike to slow down in the coming period. However, market analysts are noting that if inflation remains persistent, there is some possibility for the FED to continue with higher rate increases. The US equities modestly dropped on Friday, after the US non-farm payroll figures were released. The figures show that the US economy created 261K new jobs in September, which is more from 200K the market was expecting. At the same time, the unemployment rate was up by 0.2% to 3.7% in September from 3.5% posted previously. The results are sort of mixed, showing that the FED`s measures are slowly transferring to the real economy. This adds to the probability that FED might indeed slow its rate hikes in the coming period. At this moment investors switched their attention to the consumer price index report which will be released during the next week.
As CNBC is reporting, there is high optimism among crypto investors in the UK, that the new prime minister Rishi Sunak might support the crypto industry in the UK. This optimism comes from Sunak`s former comments of the crypto among which was his “grand plan” implying that the UK should become the world`s hub for the crypto and blockchain industry. Considering that all Sunak`s comments were made before he took the role of the PM, it shall be seen if this stance on crypto has been changed.
The Head of monetary authority in Singapore, Ravi Menon, stated that his country still has the aim to be a hub for digital assets. However, he disapproves of trading and speculation with cryptocurrencies, as many Singapore`s small investors suffered severe losses during the recent so-called crypto winter, and collapse of Terra Luna. On the other hand, Manon`s statement for banning crypto trading was criticised by the CEO of Coinbase, Brian Armstrong, noting that “those two things are incompatible '' in his opinion.
Crypto market cap
Financial markets had another modest recovery during the previous week. Modest optimism was supported by the latest FED's interest rate increase by 75 bps, with FED`s rhetoric that future increases might be lower from several previous increases. However, not all investors are confident regarding the state of the US economy. There are still those who are waiting for clear confirmation that the US inflation is on a down path, which would be a certain sign that the FED will halt further rate increases. The crypto market capitalization was modestly increased during the previous week by 2%. The market managed again to reach levels above $1 trillion, where the market last time was in September this year. Daily trading volumes continue to surge, reaching $187B on a daily basis, compared to $154B a week before. Total funds outflow from the beginning of this year was further modestly decreased to the level of $1.173B, which is a decrease of 54%.
Majority of coins gained during the previous week. Total market capitalization increase was led by BTC and BNB. The main crypto on the market gained almost 2% during the previous week, increasing its market cap by $7.6B. BTC was led by Binance Coin, which had a strong surge in total market cap by more than $7B, or 15% on a weekly basis.
Polygon also had a very good week, since the coin managed to increase market cap by $2B, which is an increase of 26%. XRP was also in a group of coins which increased market cap by $1B, as it surged a market cap by 4.5%. Other altcoins which performed well in a relative sense during the week were Litecoin, with a market cap increase of 21%, LINK with a surge of 19%, Algorand and Filecoin, with an increase in cap by 28% and 13% respectively. There are several coins which lost some of their value during the week, like DOGE, who lost almost 5% on news related to Elon Musk`s issues with Twitter management. Cardano also performed in red during the week, with a drop in market cap by 2%. As for coins in circulation, Tether continues recovery with additional 0.6%, while Filecoin continues with gains in coins, adding 2.7% to the total coins in circulation for another week in a row.
Crypto futures market
The crypto futures market is sort of a reflection of both spot market and investor`s current sentiment regarding future expectations on the performance of coins. During the previous week, there have been some changes in the slope of the maturity curve for both BTC and ETH futures, however, a bit to a negative side. For some time now, futures prices are showing that investors are not expecting any significant increase in the value of coins, at least till the end of the next year.
In line with the spot market developments, BTC futures were traded higher by some 3% for maturities until January 2023. From March next year, investors are expecting for the price of BTC to be lower by some 2% from a week before. Maturities for December 2023 dropped to the level modestly above $20K, while previous week these prices were holding above $21K.
As for ETH futures, the situation is similar. Short term futures were traded up by some 7%, with December this year ending the week at level of $1.64K. Longer term futures remained relatively flat, with a modest drop of less than 1%. December 2023 continues to hold at $1.55K for the last two weeks.
