Daily Markets Update - October 9, 2020- BTC Breaks $11K- Satoshi OTC Desk crosses historic $1M Daily

The Satoshiltd.com OTC Trade desk reached historic daily volume of $1M USD per day this week in partnership with Centurion Group. The daily volumes are expected to increase substantially in the coming weeks as the Group continues to add additional payment methods and gateways to it's portfolio of client services. The platform also plans to launch it's e-KYC solution before the end of the year. Further offerings will include client IBAN and ACH accounts for instant settlement & pre paid debit and credit card solutions.

Satoshiltd.com allows clients to Buy or Sell Bitcoin, ETH, Bitcoin Cash, Litecoin, XRP or USDT with USD fiat support, in trust and confidence. Satoshiltd.com has access to the largest off book liquidity pools in the world. Making Satoshi Ltd OTC platform one of the largest liquidity providers in the world. SL's over-the-counter (OTC) trading combines access to unparalleled market liquidity with complete privacy and guaranteed price quotes. Each trade is conducted and executed directly against the counterpart and with no on-exchange price slippage or order book discovery. This ensures instant, seamless, secure transactions with near instant settlement. Satoshi offers up to $1B USD in daily liquidity on BTC alone. Fiat settlement up to $10M USD per day. Extremely competitive and incentivized trading structure. 

Weekly Wrap

Another Bart Simpson of a week was triggered by a series of mishaps. With the WTE Mnuchin package laying the backdrop, the CFTC dropped a landmine filing indictments, John McAfee got detained, Trump caught COVID and was also called out on his claim of having paid millions in income taxes… NOT true; all contributing to $BTC breaking through to the elusive $11,000 handle- a level that it has yet to prove it is capable of holding. Yet, the inklings of a completely new segment of demand is starting to emerge as Square deploys $50M into Bitcoin. It’s the second high profile injection in as many weeks (see MicroStrategy) from the fifteen trillion plus global corporate cash stockpile and for Square this may be a mere one percent of the company's total assets but clearly, this is just the beginning. What’s the alternative for these mind-boggling cash piles stacking up against near zero and increasingly, negative yield bearing deposits?

Rep. David Scheweikert introduced a bill to the House of Representatives that would make digital signatures on the blockchain legally binding and Senator Pat Toomey (Banking Committee member) has taken a somewhat brazen approach as he appeals to the digital currency community in his campaign to be the Committee’s next chairman all read like positive trends until the ugliness returned with recent actions by the CFTC - this time BitMex were caught in the cross-hairs. 

It has to be said though, Bitmex has, without a doubt, played a massive role in expanding adoption. They have blazed the trail when a regulatory framework was non-existent. Being called out by one of their very own, it’s not difficult to see something is clearly amok. Year to date, we have seen Renaissance Technology (a pioneer of the very HFT/quant fund); Paul Tudor Jones (one of the GOAT hedge fund managers); Fidelity International (a $300bn asset manager); and Charles Schwab accumulating exposure through listed digital asset miners, hardware makers. Regardless, the battle continues to be played out on multiple fronts as the IRS also has a $625K bounty out for anyone that can crack the privacy coin Monero ($XMR). Across the Atlantic, the Europeans have furthered their haste to get on the bandwagon themselves, as the ECB published a 55-pager pushing the envelope to keep apace with China’s much heralded and publicized beta DC/EP. TLDR? They will have a decision sometime mid-2021 whether a Euro-CBDC is indeed what they need. 

Meanwhile, the Brits seemingly taking note from their American brethren after the Bitmex actions, have taken an aggressive approach of their own with the FCA outright banning derivatives and exchange traded notes- despite the latter providing zero leverage.

The Chinese are clearly in the midst of a significant breakaway from the peloton of major market talkers and dreamers. The DCEP has made humongous progress as Fan Yifei, People’s Bank of China (PBOC) Deputy Governor revealed more than 113K consumer digital wallets and over 8.8K corporate wallets in pilot cities Shenzhen, Suzhou and Xiongan - clearing CNY 1.1B during April to August. According to @AdaPSEIS at Coindesk, “Hooked up to facial recognition, barcode scanning and tap and go payment technologies, the digital yuan transactions spanned over 6,700 types of use cases”.

On the topic of China’s DCEP pilot, in a few days time several lucky applicants in the shopping mecca of Shenzhen’s LuoHu (Lo Wu) District, will receive 200 RMB in their “Private Luohu Digital RMB Red Packet” as part of 10 million Digital RMB “Shopping Voucher” scheme.  The kicker?  It’s issued not by one of the four participating pilot banks nor utilizing their banking apps, but rather by the PBOC (People’s Bank of China) in its own app - instantly removing third party merchant fees.  That’s some serious Lance Armstrong pedalling away from other major economies right there.

The hype in the digital art/NFT space is brewing once again with Dapper Lab’s latest venture NBA TopShot attracting $2M in CBT sales for the digital collectibles. Boomers with their physical collector cards, millennials with their NFTs… how times change!  

Some heartwarming news for KuCoin as the hacked exchange tweets of having recovered 204 of the $281M that was cleared out of their coffers, as the entire industry came through to support them in seizing the assets without any regulatory coercion. To those that contributed, we salute you all. 

Digital assets market:

  • Overall market cap up a second day from $323B -> $327B -> $333B

  • $BTC maintained its bullish momentum overnight as it spiked from $10,550 to 10,990 with a 20% increase in traded volume (1$7.3B) after the news of publicly listed payment processor, Square announced that it has purchased $50m USD worth of $BTC equivalent to 1% of its Total Assets.

  • Month to date, $BTC has gone up 3%, this week alone has seen a 1.4% jump from $10,788 to $10,940 as we wrap up the first week of October with a traded range of $400.

  • $ETH pumped from $341 to $353 before correcting back to $350 levels with a thin support range as it is unprotected below $348. $ETH gas fees still around 46-50 range as the DeFi sector still recovering from the mass sell-off, some tokens seeing losses of over 90% such as $CRV token from $5 levels to 0.53.

Alts and DeFi watch:

  • DeFi-related tokens seeing some renewed interest, with overall TVL in DeFi improving +$38M overnight to $10.49B (https://defipulse.com/)

  • $YFI up 10.4% to $16,200 after ending its free fall to lows of $12,260, has already dropped 31% since the start of October.

  • Other notable movements: $LINK up 6% to $9.44 and $UNI up 11% to $3.26

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