November 6, 2023

Markets Insights

Economic Calendar

Next FOMC meeting: Dec 13th 2023

  • Probability of a 0bps hike → 90%
  • Probability of a 25bps hike → 10%

The News Room

Georgia's Central Bank Taps Ripple for Digital Currency Pilot Project

The National Bank of Georgia (NBG) has embarked on a pilot project for a central bank digital currency (CBDC), collaborating with Ripple to develop a "digital lari." This initiative marks a significant step in exploring the practical applications of a CBDC in public, business, and retail sectors within Georgia. Ripple, known for its expertise in blockchain payment solutions, was chosen as the key partner due to its comprehensive understanding and commitment to the project's success, alongside its experience in executing real-life CBDC pilots. The project aims to leverage Ripple's CBDC Platform, which offers capabilities from basic digital infrastructure to advanced features like smart contracts and tokenization. This partnership enhances Ripple's growing involvement in CBDC development, adding to its existing engagements with central banks in Bhutan, Palau, Montenegro, Colombia, and Hong Kong.

Block's Q3 Bitcoin Gross Profit jumps 22% year-over-year to reach $45 million

Block, Inc., led by Jack Dorsey, showcased a robust financial performance in Q3 with Bitcoin revenue surging by 37% to $2.42 billion, compared to $1.77 billion in the same quarter of the previous year. Bitcoin gross profit also rose by 22% to $45 million. This uptick was credited to an increase in the average market price of Bitcoin and greater sales volume through its Cash App platform. Block's treasury holdings of bitcoin also appreciated in fair market value, currently standing $114 million over its carrying value, a contrast that highlights the disparity between traditional accounting impairment measures and market valuation. The overall financial health of Block was strong, with notable gains in its Cash App revenue, user growth, and contributions from its Buy Now, Pay Later platform. Block's total net revenue, with Bitcoin transactions constituting a significant part, reached $5.62 billion, marking a 24% year-over-year growth.

Bitcoin Miner Marathon Tests BTC Mining With Methane Gas From Waste Landfill

Marathon Digital Holdings has launched a pilot project in Utah, using methane from landfill waste to generate electricity for Bitcoin mining. Partnering with Nodal Power, the 280 kW project could expand if successful, aiming to utilize methane—a potent greenhouse gas—to create a renewable energy source for mining operations. This initiative is part of Marathon’s wider strategy to adopt environmentally friendly practices by converting harmful emissions into clean energy, potentially reducing energy costs and environmental impact while diversifying operations. If effective, the method could align Bitcoin mining with environmental improvement efforts as the industry explores innovative solutions to its energy consumption challenges.

Trading Desk Insights

U.S. equity futures edged higher this Monday, riding the momentum from an exceptionally strong performance last week – the best seen this year.

The major indexes finished last week on a high note, echoing bullish sentiments to kickstart November's trading. Both the S&P 500 and Nasdaq rallied, surging 5.85% and 6.6% respectively, marking their best performance since November 2022. A subdued jobs report weighed on bond yields, further bolstering equity markets.

Bitcoin is charting a steady course, maintaining its climb within a rising trend channel on the shorter time frames, consistently carving out higher highs and lows. Although the momentum appears to have moderated, the bullish trend persists, lifting the altcoin sector alongside it.

The upbeat mood prevails in the digital assets space, as evidenced by $261 million flowing into crypto investment products. This marks the sixth successive week of inflows, accumulating a total of $767 million and outpacing the $736 million recorded in 2022. Ethereum, in particular, attracted the most significant inflows since August 2022, with a notable $17.5 million.

ETHBTC has rebounded 6% from recent troughs of 0.051, with Ethereum potentially demonstrating a stronger upside than Bitcoin, pushing past the $1,900 resistance and nearing the key $2,000 threshold. Notably, for the first time since August, ETH futures premiums on the CME are aligning with those of BTC futures, signaling a reduced tendency among traders to offset BTC positions with ETH hedges.

In a significant move, XRP has rallied almost 20% over the span of two days as Ripple's services gain traction among financial institutions, including securing essential permissions to conduct operations in Georgia and Dubai. This surge in adoption has been mirrored by a spike in trading volumes, leaping to $2 billion and propelling XRP to surpass BNB as the fourth largest token by market cap.

Technical Charts


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