July 20, 2023

Markets Insights

Next FOMC meeting: July 26 2023.

  • Probability of a 0bps hike → 0%
  • Probability of a 25bps hike → 100%

The News Room

Gensler wants fresh $109 million to help SEC rein in 'Wild West' of crypto

SEC Chairman Gary Gensler is seeking an additional $109 million in funding to bolster the agency's efforts in regulating the rapidly evolving cryptocurrency market. The request comes as Gensler aims to increase the SEC's oversight on crypto exchanges, trading platforms, and other market participants. With the cryptocurrency space often referred to as the "Wild West," the SEC's move to secure additional resources underscores the need for stronger regulatory measures to protect investors and maintain market integrity. The funding, if approved, could lead to more stringent compliance requirements and improved investor protections in the crypto industry.


Senate bill would tighten money laundering and sanctions rules for DeFi

A Senate bill proposes to impose stricter money laundering and sanctions rules on decentralized finance (DeFi) platforms. The legislation seeks to address concerns about potential illicit activities and financial crimes occurring in the DeFi space due to its decentralized and permissionless nature. The bill aims to hold DeFi projects and users accountable for adhering to anti-money laundering (AML) and sanctions regulations. As DeFi continues to grow in popularity and adoption, regulatory efforts to ensure compliance and combat illicit activities become more pronounced. The proposed bill signifies a broader trend of governments and regulators aiming to establish clear regulatory frameworks for the rapidly expanding DeFi sector.


Google Play Store officially allows NFT games, but no gambling

Google Play Store now officially allows NFT (Non-Fungible Token) games to be listed on its platform, providing a significant boost to the NFT gaming industry. However, the platform explicitly prohibits the listing of gambling-related NFT games. This move is expected to facilitate greater mainstream adoption of NFTs and blockchain-based gaming. NFTs have gained immense popularity in various industries, including art, collectibles, and now gaming, due to their unique properties and provable ownership. The decision by Google Play Store to embrace NFT games while restricting gambling-related content demonstrates the platform's efforts to strike a balance between innovation and user protection.


Tesla’s diamond hands: EV maker's Bitcoin holdings see no change in Q2

Tesla's Bitcoin holdings remained unchanged in the second quarter, according to their financial disclosures. The electric vehicle manufacturer had purchased $1.5 billion worth of Bitcoin earlier, and this report indicates that the company did not sell any of its holdings during the stated period. This development comes amid ongoing discussions about corporate treasury management in the cryptocurrency space. Tesla's decision to hold its Bitcoin holdings indicates a continued belief in the long-term potential and value of the cryptocurrency as a store of value. As more companies explore adding Bitcoin to their balance sheets, the market is closely observing the impact of such decisions on the broader cryptocurrency adoption landscape.


Trading Desk Insights

The US markets have opened in negative territory following unstable earnings in the tech sector.

Tesla (TSLA) disclosed its Q2 earnings report, which saw the company outperforming predictions. The reported EPS was $0.91, outstripping forecasts of $0.82. Vehicle deliveries topped 466,140 with sales totaling $24.9 billion, exceeding projections of $24.5 billion. The company also stated that it did not liquidate any of its approximately $333,000,000 worth of Bitcoin in Q2 2023. Elon Musk warned that production would slow down during Q3 due to shutdowns for factory improvements. Despite the good financials, Tesla's stock has declined 5% this morning.

Netflix (NFLX), a pioneer in streaming video, fell short of Wall Street's expectations with a Q2 revenue of $8.2 billion, slightly below the anticipated $8.3 billion. This resulted in an 8% drop in shares this morning.

2-year and 10-year US Treasury yields have climbed to 4.84% and 3.81% respectively, while the US dollar index has been slowly rising, exerting pressure on overall risk assets.

Bitcoin has recently retested the $30,000 mark on higher-than-average volume. As previously discussed, a break and close above $30,400 would be crucial to confirm a rebound from the recent lows.

Ripple (XRP) has sustained a recovery, rising by 27% since the pullback's lowest point last Friday. This momentum has influenced other altcoins as well, notably Stellar (XLM), which has experienced significant momentum recently. XLM and XRP have traditionally been an interesting pairs trade due to their similar technologies and use cases, despite facing different regulatory challenges. Typically, XRP's movements, often driven by headlines, precede those of XLM.

Interest for XLM on the OTC desk remains subdued, though XRP has caught more attention. Many traders are beginning to build positions across the altcoin sector, despite thin liquidity. This trend appears to be motivated by confidence that Bitcoin will rise above its current range, potentially leading to greater movements in altcoins. Bitcoin buying and selling remain strong, though Ethereum trading has declined. Stablecoin flow continues to grow, with 90% of activity focused around USDT and the remaining 10% on USDC.

Altcoin Watch - Maker (MKR)

MKR has been on our watchlist this month due to events including the expansion of the Spark protocol to the Gnosis chain. A move that could lead to more utility and demand for the DAI stablecoin. Key benefits include Gnosis chain’s high level of decentralization and lower transaction costs.

MKR also owes its robust bullish performance to other factors such as MKR repurchase contract deployment and fee capture growth. But just how impressive was its growth?

MKR/USDT - On the daily chart, it can be seen since the 10th June '23 MKR has boasted a 110% return on its USDT pair. Since bearish structure was broken, the bulls have maintained strong momentum to the upside, suggesting there is a good chance the previous high at 1080 will be taken out to continue the uptrend.


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

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