December 7, 2023

Markets Insights

Economic Calendar

Next FOMC meeting: Dec 13th 2023

  • Probability of a 0bps hike → 97%
  • Probability of a 25bps hike → 3%

The News Room

SocGen’s Crypto Unit Debuts Euro-Pegged Stablecoin

France's third-largest bank, Societe Generale, is launching its Euro-pegged stablecoin, EUR CoinVertible (EURCV), on the crypto exchange Bitstamp. Developed by the bank's crypto division SG Forge, EURCV, issued on the Ethereum blockchain, marks the first time a regulated European bank has introduced a Euro-pegged stablecoin on a crypto exchange. This move, according to SG Forge CEO Jean-Marc Stenger, aims to diversify positions in the crypto ecosystem and facilitate the broader adoption of their stablecoin.

Initially announced in April, EURCV is designed to offer institutional investors a new way to manage cash flow and bridge traditional and digital asset markets. Its listing on an exchange extends access to retail traders, contributing to the stablecoin market alongside major players such as Tether and Circle’s USDC. This follows SocGen's recent issuance of a green bond on the Ethereum blockchain and aligns with the bank's growing interest in digital assets, as demonstrated by SG Forge's licensure as a digital asset service provider in France.

Swiss City Lugano to Accept Bitcoin, Tether for Tax Payments

Lugano, Switzerland, has expanded its payment options for taxes and community fees to include Bitcoin (BTC) and Tether's USDT stablecoin. Facilitated by Bitcoin Suisse, a Swiss crypto gateway provider, this update allows citizens and institutions to pay all city-issued invoices using these cryptocurrencies, extending beyond the previous limitation to the city’s online portal. This development is part of Lugano’s Plan B initiative, aiming to integrate blockchain technology into the city's financial system and daily life in collaboration with Tether. Bitcoin Suisse's use of QR-Bill technology simplifies the payment process, enabling residents to scan invoice QR codes and select their preferred cryptocurrency for payment. Lugano's move reflects a growing trend in Swiss municipalities adopting cryptocurrency as a payment method, complementing traditional options, and follows similar pro-crypto approaches in other Swiss regions such as Zug and Zermatt.

Hut 8 Eyes AI-Related Opportunities After Merger

Crypto mining firm Hut 8 is venturing into the artificial intelligence (AI) infrastructure and computing markets following its merger with US Bitcoin Corp. Chief Strategy Officer Mike Ho stated that Hut 8 is well-positioned to meet the rising demand for high-density data center infrastructure, with plans to capitalize on the growth potential of AI. This strategic shift follows the company's acquisition of five data centers in early 2022 and its engagement in various computing services, including gaming rendering and NFT storage.

The firm, which already provides high-performance computing services, aims to expand its revenue streams, aligning with industry trends where crypto miners such as Hive Digital Technologies and Bit Digital are diversifying into AI-focused ventures. With an installed self-mining capacity of 7.5 EH/s across multiple sites, Hut 8 is looking to optimize operational synergies and explore growth opportunities in the face of the upcoming Bitcoin halving and intensifying competition among large miners.

Trading Desk Insights

Bitcoin experienced a slight loss of steam when it encountered significant resistance as it neared the $45,000 threshold. Following a brief surge to $44,500, prices retraced by nearly 4%, bottoming out at a session low of $42,850.

Conversations between the SEC and asset management firms seeking to list Bitcoin ETFs, such as Grayscale and BlackRock, have progressed into critical technical discussions. Regulatory authorities have consistently harbored concerns regarding market manipulation, prompting these ETF issuers to diligently finalize various aspects, including custody arrangements, creation and redemption mechanisms, and investor risk disclosures. The imminent ETF launch is anticipated to attract an influx of approximately $3 billion within its initial days.

JPMorgan Chase's CEO, Jamie Dimon, expressed vehement opposition to cryptocurrencies during a hearing on Capitol Hill, advocating for their outright ban. He emphasized, "If I were in charge, I would shut it down." Despite Dimon's longstanding skepticism toward cryptocurrencies dating back to 2017, it's worth noting that his bank maintains a substantial involvement in blockchain technology.

Equity futures exhibited positive momentum on Thursday, with the looming release of Friday's highly anticipated job report. Wednesday marked the first instance of a three-day negative streak for the S&P 500 since October.

Throughout the week, investor attention has been fixated on the job market amidst a series of mixed data releases. This morning's release of weekly jobless claims fell short of expectations, suggesting that the pace of layoffs has not intensified. This leaves the market in a state of uncertainty as it awaits the centerpiece event: Friday's official jobs report. Investors are keeping a close eye on the possibility of labor market softening, as this could influence the Federal Reserve's inclination to refrain from further interest rate hikes.

Technical Charts


This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.

Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.

The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.

Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.

Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.

Contact Us

Sign up to receive more exclusive market coverage:

Start trading with Secure Digital Markets today by e-mailing:

Was this content helpful?
Announcing the Release of the 2023 Market Outlook
April 23, 2023
9 min
April 23, 2023
Crypto Industry Reeling After 3 Banks Collapsed Over the Weekend
March 24, 2023
9 min
March 24, 2023