Monday Market Report | Oct 24 - 30, 2022
📢 Weekly TL;DR
• Happy Halloween 🎃
• Bank of Canada hiked rates by 50bps–surprising to the downside;
• Risk assets rallied
• Bitcoin and Ether hit 6-week highs
• Bitcoin is up 5.57% w/w, Ether–a whopping 17.05%
• Elon finally closed on Twitter; Doge rallied 43% w/w
• Rishi Sunak resumes plans to position the UK as Crypto-Open-For-Business
📻 Crypto News
• Crypto VC Funding Down Last Quarter–But Not Out– Blockworks
• Bitcoin Miners Are Flocking to Maple Finance’s $300M Lending Pool- CoinDesk
• Bitcoin weak hands ‘mostly gone’ as BTC ignores Amazon, Meta dips – CoinTelegraph
• Crypto Faithfuls Await Elon Musk’s Blockchain Plans for Twitter – Blockworks
• Crypto-Friendly Rishi Sunak to Become UK Prime Minister Following Truss Exit - CoinDesk
• UK has a new name for stablecoins and a new bill to regulate crypto - CoinTelegraph
• BTC CA $27,983 +5.57%
• ETH CA $2,157 +17.05%
🔼 TOP GAINERS this week*
• DOGE CA $0.17 +101.95%
• GALA CA $0.05 +27.08%
• SAND CA $1.23 +21.05%
• SHIB CA $0.000017 +19.82%
🔽 TOP LOSERS this week*
• AAVE CA $114 -4.80%
• XRP CA $0.62 -0.80%
*As of 10/31/2022 12:00 AM EST
📊 Cryptocurrency Market Overview
Well, we finally got that breakout we’d been expecting for weeks, and perhaps–just perhaps–we have our very own Bank of Canada to thank for it.
BTC's price could have gone both ways–there’s a boilerplate case for either direction. But when the Bank of Canada surprised to the downside in their announcement that they were hiking the benchmark lending rate by only 2/3rds of the 75bps that were expected, market participants saw it as a possible first sign of Central Banks easing off on the hiking (for at least the near term–if not pivoting altogether) and risk assets rallied.
Or perhaps markets were tired of depressed price levels and needed a reason–any reason–to buy. (At the very least cover shorts!) If you detect a hint of apprehension, you’re at least partially correct: No one’s waving any white flags as of yet–quite the opposite–and few believe this rally signifies the end of the crypto bear market, let alone the looming recession.
So as has been our practice since the Fed first started signaling their intentions circa last ‘Uptober’; we’re taking this nice splash of green–accent colour that it is in our predominantly red charts–with a pinch of suspicion… As we continue to DCA and 👀 with bated breath.
- Yours in the #Hodl, Grateful for Bitcoin
📈 Bitcoin Technical Analysis
• Like your favourite action hero stuck in a room with walls closing in on them, BTC’s price corridors were becoming too narrow and something had to give. – Well, gave it did: Tuesday through Wednesday, and then again on Friday–after a brief ‘rest’ on Thursday–to finish off the week up roughly 8%.
🔎 NDAX Feature
Did you know you could set your Dollar Cost Averaging on Autopilot with the NDAX Recurring Purchase feature?
Dollar-cost averaging allows you to buy smaller amounts of an asset over a long period of time at different prices. As the cost of assets moves in a zigzag manner, investing at regular intervals allows you to buy an asset at an average price versus buying a huge chunk at one price point.
🕑 Invest consistently
Recurring purchases are an effective solution for traders looking to invest at an average price over a longer timeframe.
📈 Forget complex price movements
As more institutional and retail investors enter the crypto markets, prices of cryptocurrencies are gaining stability. However, you may still not want to take any significant risks with your money by trying to time the market.
💰 No need for a large sum of money
Investing a considerable amount at once is not possible for everyone. The dollar-cost average approach can be a good choice for investors looking to slowly enter the cryptocurrency market.
Upon login, Recurring Purchases are 6th from the top of the main left-hand menu/navigation bar.
📰 What We’re Reading
• 'Hyperbitcoinization' Coming to an Emerging Market Near You, Ray Youssef - CoinDesk
• What is the Lightning Network - Bitcoin Magazine
🎙️ What We’re Streaming
• Why Bitcoin’s Bear Market Hashrate Surge May Not Be Bullish - CoinDesk - The Breakdown w/ NLW
• 4th Quarter Macro Overview w/ Luke Gromen - The Investors Podcast - Bitcoin Fundamentals w/ Preston Pysh
🛡️ Cybersecurity Month
Spearphishing, social engineering, malware–oh my! Are you aware of which common phishing red flags to look out for?
Here is a resources on how to stay vigilant of phishing attempts:
• Nov 2nd – Next FOMC
• November 4th – US Non-Farm Payrolls
• November 10th – Consumer Price Index
Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.