You are about to leave the website of SDM Inc. ("SDM") and will be redirected to the website of SDM Financial Inc. ("SDM Financial"), a US affiliate of SDM providing crypto derivatives trading services.
Please be aware that SDM Financial's services are not intended for, and should not be used by, residents of Canada.
By clicking on the link to SDM Financial's website, you acknowledge and agree that: You are not a Canadian resident.
SDM Financial is not registered with any regulatory authority in Canada and is strictly prohibited from entering, or otherwise engaging in, any transactions with Canadian residents.
Non-Canadian residents who deal with SDM Financial do so at their own risk, and SDM will not be held liable for any losses or damages incurred as a result.
By clicking 'I Accept' below, you confirm that you have read, understand, and agree to the above . If you do not agree, please select 'I Decline' and you will be redirected back to SDM's website.
A deceptive filing made to appear as if BlackRock was preparing to launch an XRP ETF led to a temporary surge in XRP's price. The filing, which appeared on the Delaware Divisions of Corporations website, mimicked the format of BlackRock's authentic filings, including the asset manager's name and the address of its registered agent. It followed the pattern of BlackRock's previous filings for Bitcoin and Ether but included XRP. However, a BlackRock spokesperson clarified to The Block that the filing was unrelated to the company, debunking any plans for an XRP ETF launch by BlackRock. The false news initially led to a 12% increase in XRP's price, which later corrected back to around 66 cents per token after the revelation that the filing was fake.
Bitcoin Mining to Bolster Renewable Energy Grids: Iris Energy Co-Founder
Iris Energy co-founder and co-CEO Daniel Roberts highlighted the potential of Bitcoin mining to support renewable energy grids and provide solutions to energy supply imbalances. By strategically locating near renewable sources, Iris Energy aims to use excess energy for Bitcoin mining, especially in areas like West Texas, where renewable generation outpaces transmission capacity. This approach allows the company to balance the grid by consuming power when it's abundant and stepping back when demand peaks, as evidenced by the $2.3 million in power credits it received for curtailing operations during high-demand periods. Roberts emphasized Iris Energy's commitment to sustainable mining, using 100% renewable energy and building institutional-grade data centers capable of supporting high power-density applications beyond Bitcoin mining, such as generative AI. Despite market challenges and the FTX collapse, Roberts remains optimistic, noting improvements like a stabilized Bitcoin price, the anticipated approval of a Bitcoin ETF, and the upcoming halving event.
Tokenized Cash Fintech Fnality Raises $95M Led by Goldman and BNP Paribas
Fnality, a fintech firm focused on creating tokenized versions of major currencies backed by central bank cash, has secured $95 million in Series B funding. The investment, spearheaded by Goldman Sachs and BNP Paribas, includes contributions from prominent industry players such as DTCC, Euroclear, Nomura, and WisdomTree, alongside renewed support from its original 2019 backers including Banco Santander, BNY Mellon, Barclays, and others. Fnality aims to bridge the gap between traditional and decentralized finance by enabling blockchain-based settlement solutions in wholesale markets, with a focus on delivery versus payment systems. This new round of funding underscores the financial sector's commitment to integrating blockchain technology for more efficient and innovative transaction methods.
Trading Desk Insights
Stock futures experienced a robust uptick on Tuesday, eliciting a positive response from investors who welcomed the latest U.S. CPI report.
The CPI exhibited stability in the previous month, defying expectations of a 0.1% month-over-month increase. Meanwhile, the core CPI, which excludes food and energy prices, registered a growth of 0.2%, falling short of the anticipated 0.3% and marking its slowest expansion in two years. This development injected a sense of optimism into the market, signaling that the Federal Reserve was making progress in its battle against inflation. Subsequent to this report, fed-funds futures indicated that traders had eliminated any possibility of an interest rate hike in December, which had previously been estimated at 14%.
UBS has projected a contraction of the economy by 0.5% in the middle of the upcoming year, with annual GDP growth expected to reach a mere 0.3% in 2024. Unemployment is anticipated to climb to nearly 5% by the year's end. Additionally, the Swiss bank foresees the U.S. Federal Reserve reducing interest rates by as much as 275 basis points in 2024, a figure nearly four times higher than the market consensus. This forecast comes as the world's largest economy teeters on the brink of recession. In contrast, Goldman Sachs predicts that the U.S. economy will expand by 2.1% in 2024, surpassing other developed markets.
Now, turning our attention to the cryptocurrency market.
Bitcoin (BTC) is retracing towards our intraday support level of 35,600, where there is potential for a rebound. Trading volume is on the rise, up by 45% to $33 billion, while 24-hour liquidations in the market have increased by 35% to $175 million.
Ethereum (ETH) has returned to the 2000s price range but may undergo a pullback towards the breakout area at 1900. The ETHBTC pair has shown signs of recovery but remains in a downtrend. For now, we should expect a dead cat bounce as there is no clear reason to believe ETH should consistently outperform BTC in this market environment.
The crypto market is currently witnessing a significant shift in dynamics, with altcoins, including ETH, accounting for 60% of trading volume. This milestone represents the highest level observed in over a year and highlights an important trend in the cryptocurrency space. Historically, such an increase in altcoin trading volume relative to BTC has been a strong indicator of a bull market in the crypto space. This shift in trading activity suggests that investors are increasingly drawn to altcoins beyond the dominant BTC.
Technical Charts
Disclaimer
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:
.png)
.png)
