Either President Trump can leave the hospital in the second week, in the event of its infection from a new impetus to the negotiations of fiscal stimuli not in Congress or in the face of the Covid-19 pandemic continues to reach the world as wrote investing.
As the years have to go up, as oil prices are recovering from a minimum of three weeks. The launch of the PMI de serviços ISM de Setembro is also planned.
Here is what you need to know about the traditional financial markets and cryptocurrency market.
U.S. stock futures rose, recovering after Friday’s losses, as much of the political uncertainty stemming from President Trump’s COVID news dissipated.
At 8:44 am (GMT), Dow futures were up 209 points, or 0.8%, while the S&P 500 futures were up 0.7% and Nasdaq futures were up 0.9%.
Helping the tone was increasing confidence that a new stimulus package could be agreed on Capitol Hill.
House of Representatives spokeswoman Nancy Pelosi expressed optimism over the weekend that a bipartisan stimulus bill could be approved, suggesting that Trump’s infection “kind of changes the dynamic.”
The president increased the pressure on his hospital bed, tweeting his desire for a deal on a stimulus package, while the disappointing job report on Friday certainly caught the eye.
Actions likely to be in focus on Monday include the tech giants that emerged during the pandemic, with the Wall Street Journal reporting that they could be particularly affected by tax changes after the Democratic election victory in November.
The high-tech index Nasdaq Composite was responsible for sales on Friday, following news from President Trump’s Covid. This index closed down 2.2%, compared to the 1% loss in the broader S&P 500 index.
Oil prices rebounded on Monday after falling to their lowest levels in nearly three weeks at the end of last week, helped by renewed confidence in the potential for a new stimulus package.
Much of the focus around the energy markets has been on the demand side, understandably, given the continuing impact of the Covid-19 pandemic. However, the supply side of the equation may soon start to increase in importance.
Libya saw an almost three-fold increase in its production, reaching 270,000 barrels a day last week, still a little far from the more than one million barrels a day it produced earlier this year. Likewise, the latest data from Baker Hughes showed that the count of oil rigs in the U.S. increased from six to 189 in the past week, the highest count since June.
This could increase pressure on OPEC and its allies to consider further cuts in supply at the November meeting.
At 8:44 am, US oil futures were up 4.2% at $ 38.62 a barrel, while Brent futures were up 3.7% at $ 40.74 a barrel. Both benchmarks fell more than 4% on Friday.
Bitcoin price continues to trade above $10,500 after a short dip lower last week on the heels of some extremely negative crypto market news. The lack of a deeper selloff with such significant news breaking could be a sign that Bitcoin is building for a move higher, as wrote the last primexbt report.
Within our perspective, we remain within that large ABCD accumulation zone between 10163 and 11086 with great resistance support made by the EMA100 at 10481. The truth, compared to Bitcoin and other correlated assets, we see that many are respecting this main support.
We will see a price decision very soon when there is a narrow path made by Bollinger bands.
As says the report, last week also saw the end of the third quarter of 2020, where Bitcoin ended its second-best third quarter in history with an 18% gain. His best performance in the third quarter was during the 2017 bull run, with an 81% gain. Traditionally, the third quarter has been the worst quarter for Bitcoin, but now, even three consecutive bad news events cannot bring down the price of BTC.
This shows a great price resilience possibly attributed to institutional investors that accumulate with each retest of minimums. For example, it was reported that the grayscale added another 17,000 BTC to its holdings during that time.
In addition to the increase in institutional purchases, more new entrants entering the crypto space buying BTC may also be contributing to their resilience.
The graph below shows that the number of non-zero BTC wallet addresses has steadily increased since 2019 and has surpassed the peak reached at the peak of 2018. The number of non-zero BTC wallets is almost 30 million now, compared to just 20 million in 2019 — a 50% increase in just over a year.
While the increase in new entrants is striking, a recent study estimated that there are currently only 101 million cryptography users worldwide. With a worldwide population of 7.8 billion, a user base of 100 million represents only about 1%, which means that the growth potential remains very large.
Another reason for the lack of volatility in Bitcoin’s price may be due to the drop in open interest in the BTC options market. Since the record number of options expired on September 25, open options have declined in the past week.
Uniswap and others saw exponential growth in trading volumes. Alongside DEXs, centralized exchanges have also seen a large increase in volumes as price gains in August and September pushed volumes higher. In particular, LMAX Digital saw its highest volume month ever in September, as reported TradeBlock.com.
With the recent increase in activity across its exchange, LMAX Digital gained considerable market share in September competing with Coinbase as the highest volume US accessible exchange.
In the figure below, we diagram bitcoin notional trading volume market share across the five largest US accessible exchanges. As shown, LMAX Digital saw a heightened increase in market share for the most recent full month period.
Also, TradeBlock.com comments that DeFi has been the theme of 2020, and it appears to show no signs of slowing down. Despite the recent price slump in DeFi tokens, DeFi apps continue to attract more capital as market participants clamor for yield.
The total value of digital currencies deposited in DeFi smart contracts hit a new all-time high this past week, cruising past $10 billion in notional value.
Additionally, the total amount of ETH deposited in DeFi contracts hit a new all-time high recently with more than 8 million ether currently in these contracts. Ether is the primary asset used in the DeFi ecosystem.
DeFi tokens themselves have underperformed the broader digital currency market amidst an unwind in the DeFi trade over the past few weeks. YFI, for instance, which had been one of the best performing DeFi tokens, declined 39% this past week.
Through the summer, YFI went on an incredible bull run, rising more than 50x from $750 per token to a staggering $43,000 per token by September 9th.
As wrote by glassnode, last week, on Thursday 1 October, the popular exchange BitMEX, and a number of associated individuals, were charged by the CFTC for attempting to evade US regulations while operating an unregistered trading platform.
On Friday, 2 October, the day after the announcement, BitMEX saw its largest-ever day of net outflows as investors rushed to remove their funds from the now-risky platform.
Overall, since the announcement, almost 45,000 BTC have been withdrawn from the exchange, representing a 27% drop in the total balance of BTC on BitMEX.
At the same time, BTC open interest in perpetual futures contracts on BitMEX saw a significant decline as well, decreasing by almost 24% from $590M to $450M — levels not seen since May 2020. However, the market appears to be mostly unfazed, and bitcoin futures remain popular on other exchanges despite this setback, concludes the report.