Next FOMC meeting: Sept 20th 2023.
Securitize has announced its acquisition of Onramp Invest, a digital asset wealth platform that collaborates with US Registered Investment Advisors (RIAs) overseeing $40 billion in assets. The deal allows Securitize to provide tokenized alternatives, such as private equity and private credit, to RIAs. Tokenization, which involves converting real-world assets into digital blockchain formats, offers real-time settlement and on-chain visibility for investors.
The industry sees this acquisition as a significant advancement for the tokenization market, underscoring its potential to revolutionize the crypto sector by providing wider access to various assets. With the RIA community managing an estimated $110 trillion in US assets, Securitize's President Jamie Finn emphasized the importance of making tokenized assets accessible to this market.
Ahead of the impending Bitcoin halving event which reduces miner rewards, JPMorgan reveals that Bitcoin and former Ethereum miners are diversifying by offering high-performance computing services for the burgeoning AI industry. With AI and crypto mining both requiring advanced chips, and Ethereum's shift from proof-of-work rendering many GPUs redundant, the rising AI demand presents a potentially more lucrative use for these GPUs.
Early tests indicate that HPC services offer higher profitability than current Bitcoin mining. Additionally, miners are geographically expanding, with Russia becoming a prime location due to its surplus energy and cost-effective power, exacerbated by the Ukraine conflict's economic repercussions. JPMorgan warns that the upcoming halving may challenge miners, especially those facing higher electricity costs.
Taiwan's Ministry of Economic Affairs is drafting an amendment to add a digital asset services category to its regulations, facilitating crypto companies in establishing industry associations. The move, aimed at advancing self-regulatory measures, will define crypto operations such as exchanges, transfers, and issuance assistance. While the crypto sector remains mainly unregulated, virtual asset service providers must adhere to Taiwan's anti-money laundering laws. The Financial Supervisory Commission is set to release comprehensive guidelines for crypto trading and payments by the end of September.
The S&P 500 edges upwards as Wall Street looks to rebound after recent setbacks. The market continued to trade higher after the stock market open but then started to feel some pressure after 10am EST when the 10-year yield broke above the previous high to reach its highest level since October 2007. This will certainly place some pressure on risk assets overall if it continues to trade higher.
Investors navigate through a period of market turbulence, with last week marking Nasdaq’s third consecutive week of decline – a trend unseen since December, reflecting a dip of approximately 2.6%. Concurrently, the S&P 500 recorded a 2.1% decline, marking its third back-to-back weekly drop since February.
Eyes are on major tech players this week: Nvidia, a notable entity in the artificial intelligence sector, and Snowflake, the pioneering tech firm, are both set to release their reports post the Wednesday market close. Their announcements could potentially influence short-term Bitcoin price movements.
Market participants are gearing up for insights this week as they await Federal Reserve Chair Jerome Powell's speech on Friday at the much-anticipated annual symposium in Jackson Hole, Wyoming.
On an intraday basis, the S&P500 remains capped by a declining trend line on the RSI which has served as a source of pressure for recent price action. Every time this indicator gets close to the trend line and starts to curl down, we notice a recent top in price action. Given the recent breakout on the 10-year yield, we believe this index will continue to trade lower towards the top-end of the gap near 4335 and then reach the lower-end of the gap near 4300.
Bitcoin hasn’t budged since the collapse on Thursday. A clear break and close above 26,350 would be necessary for bulls to attempt to take back control. We usually witness a recovery after such a big violent drop, especially if prices landed and rebounded straight off an important support level such as the infamous $25k mark.
ETH has started to slightly outperform BTC after reports that an ETH futures ETF might be approved in October. IV levels remain suppressed across the board. ETHBTC is currently breaking above the resistance zone of 0.064 but is hesitating around that level. A clear breakout should send the ratio towards 0.0665. We remain capped by a declining trend line in place since September 2022, meaning Bitcoin continues to outperform ETH overall.
During times of market volatility, it may be prudent to set limit orders at lower levels to take advantage of potential price fluctuations.
Let’s take a look at Chainlink.
LINKUSDT has been trading within a price range between $5 and $9.5 since the Summer of 2022. Every time we get close to the bottom-end around $5-$6, we then shoot up towards the $8-$9.5 mark for a healthy double digit return. This has occurred around five times.
Now that prices have re-entered the previous support zone after reaching a recent low of $5.6, we believe it could be an interesting play to set up limit orders around $5.8, $5.4 and $5 in order to sell higher towards the $8 mark.
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