November 7, 2023

Markets Insights

Economic Calendar

Next FOMC meeting: Dec 13th 2023

  • Probability of a 0bps hike → 85%
  • Probability of a 25bps hike → 15%

The News Room

SK Telecom Expands Web3 Presence Through Partnership with Aptos and Atomrigs Lab

South Korea's largest mobile carrier, SK Telecom, is expanding its Web3 presence by partnering with Aptos and Atomrigs Lab to develop its T wallet service. This collaboration marks SK Telecom's first integration with a non-Ethereum virtual machine blockchain, showcasing its commitment to diversifying its blockchain affiliations and enhancing user experience. The partnership aims to connect T wallet to the burgeoning dApp ecosystem within Aptos, utilizing Aptos's innovative MoveVM blockchain technology to make Web3 services more accessible. This move, part of SK Telecom's broader strategy, follows its previous collaborations with CryptoQuant and Polygon Labs, indicating a strong focus on developing its Web3 ecosystem and offering users advanced blockchain-based services.

Hong Kong Eases Restrictions, Allowing Retail Investors Access to Crypto Spot ETFs

Hong Kong's Securities and Futures Commission (SFC) is taking steps to open up the cryptocurrency market to retail investors, particularly with regard to spot crypto Exchange Traded Funds (ETFs). While earlier in the year, the SFC had imposed restrictions that confined crypto spot ETFs to professional investors with significant portfolios, recent updates to regulations have lowered the bar, allowing a broader investor base to partake in crypto and ETF investments provided they pass certain knowledge tests and meet revised net worth criteria. These regulatory changes are part of Hong Kong's progressive stance on digital assets, aiming to enhance market participation while ensuring new risks are adequately addressed and investors are protected through risk disclosure statements and other safeguards.

Bank of England Proposes Regulation for Systemic Stablecoins; FCA to Oversee Crypto Sector

The Bank of England (BOE) has set forth proposals to regulate "systemic stablecoins," focusing on those widely circulated enough to impact financial stability, while the Financial Conduct Authority (FCA) will oversee the broader crypto sector. This move is part of the UK's effort to become a global crypto hub and follows recent global regulatory actions in response to major stablecoin projects from companies like Meta and PayPal, and the collapse of Terraform Labs. The BOE's proposals allow for the issuance of payment-focused, fiat-backed stablecoins in the UK, provided they meet the criteria to be deemed "systemic." Feedback on these proposals will shape the final rules, with consultations expected by mid-2024 and regimes implemented by 2025.

The BOE's current focus is on stablecoins pegged to the British pound, considering potential limits on individual holdings, while the FCA seeks authorization requirements for issuers and mandates asset backing to ensure stability and easy redemption. The FCA also suggests that stablecoin issuers retain profits from backing assets, distinguishing stablecoins from traditional deposits, and proposes that issuers should not pay interest to consumers. These regulatory efforts aim to mitigate risks and set clear standards for stablecoin circulation in the UK.

Trading Desk Insights

Equity futures indicate a tempering of the recent uptick in Wall Street's momentum. Following a robust performance on Monday where Nasdaq sealed its seventh consecutive session in the green—a streak last witnessed in January—the S&P 500 also notched up its sixth straight win, a first since June.

Market participants are now bracing for a lull as they eye the upcoming week of November 13th, which is poised to deliver a fresh batch of pivotal market drivers including the US CPI data, the Biden-Xi summit, looming US government funding deadlines, and the wrap-up of the corporate earnings season.

Shifting focus, WeWork, previously tagged with a $47 billion valuation, has succumbed to financial strains, entering Chapter 11 bankruptcy on Monday.

Bitcoin has retreated towards the bottom-end of its recent ascending channel, established since October 24th. Should it breach the support near $34,250, a bearish trajectory towards $33,400 could unfold. Meanwhile, on the daily timeframe, prices are looking to revert back to their 20-day average, coinciding with an RSI downturn poised to exit the overbought zone. Notably, the RSI's supporting trendline remains intact, suggesting the bullish trend prevails. Yet, a dip beneath this threshold would flag potential trend reversal signs.

In the derivatives space, the CME's standard Bitcoin futures contract has seen a notable 35% surge in open interest to 19,603 contracts, equivalent to $3.4 billion, over a four-week span. Such activity in the CME market is often interpreted as a proxy for institutional engagement. Historically, sharp increases in open interest have occasionally heralded spot market trend inflections, hinting that the recent leap in open interest may foreshadow a forthcoming price correction. This pattern echoes the peaks and troughs observed during the late 2021 bull run climax and the bear market bottom in November 2022 when assessed on a logarithmic scale.

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.

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