Bitcoin passes $100k AUD for the first time since August

Weekly crypto wrap: 17th October 2024

TLDR

• BTC Markets Investor Study Report 2024 is now live!
• Real Vision’s Reality Check: Bull Market Correction.
• US spot Bitcoin ETFs record US$556M inflows in biggest day since June.
• Avalanche Foundation set to buy back nearly 2M AVAX sold to Terra in 2022.
• Inflation expectations dip as Australia’s CPI shows signs of easing.

BTC Markets announcements

Thank you for supporting the ASX Markets Day for Charity with BTC Markets.

We are truly grateful to everyone who joined us on Tuesday, 15th October, to make a significant impact. Collectively, we raised an incredible $710,000 in just one day!

This event is more than just a trading opportunity; it’s about creating a positive change in our community. Since 1996, the ASX Refinitiv Charity Foundation has raised over $36 million for deserving charities, and your unwavering support is essential in helping us continue this vital mission.

From all of us at BTC Markets, thank you for being part of this inspiring journey. Your generosity helps us make a real difference in the lives of those in need.

Read more here.

Singapore FinTech Festival 2024

Join our CEO, Caroline Bowler, at the Singapore FinTech Festival (SFF), the world's largest FinTech event. Caroline will be a featured panellist alongside moderator Rene Michau, Global Head of Digital Assets at Standard Chartered, Amanda Wick, Principal at Incite Consulting, and Dina Mainville, Founder and President of Collisionless. They will explore the topic "Financial Crime: Anatomy of a Scam" on Friday, November 8, at the Regulation Stage. Don’t miss this opportunity to gain insights into the critical issues facing the industry!

Learn more and register for a pass here.

BTC Markets Investor Study Report 2024 is live!

The third edition of the BTC Markets Investor Study Report highlights shifting dynamics in cryptocurrency investment. Once led by small retail investors, growth is now driven by non-retail participants such as sole traders, trusts, and SMSFs, reflecting a move toward long-term strategies.

Myths about demographic engagement are dispelled in the report, revealing that older generations and women are increasingly adopting traditional investment approaches to digital assets. The findings point to a growing sophistication in investment strategies, with established investors playing a key role in shaping the future of the market.

Read the Investor Study Report 2024 here.

Win a signed "Team Tori" T-shirt from Australian Olympian, Tori West!

We’re excited to have our sponsored athlete Tori West back in Australia! To celebrate her return, we’re giving away a signed ‘Team Tori’ T-shirt!

To enter:

Follow BTC Markets and Tori West on X (Twitter).

Retweet our post.

Leave a comment on the BTC Markets promotional post for Tori!

Join here now!

Real Vision Deep Dives with Chief Crypto Analyst, Jamie Coutts.

Reality Check: Bull Market Correction.

The past six months have been tough for crypto markets, but a strong foundation is being laid beneath the surface of volatile prices and supply overhangs. Smart contract platforms (SCP) — the backbone of the digital asset ecosystem — are quietly experiencing increased adoption and capital inflows.

Despite concerns over potential political headwinds — a Harris victory or a more fiscally responsible Republican government could impact sentiment — the basis for assessing a secular technology, Blockchain, or adoption, appears to have its own momentum at this point.

Read the preview report: ‘Reality Check: Bull Market Correction.’

Unpacking the ATO’s latest guidance on crypto taxes for DeFi with Crypto Tax Calculator.

Our Head of Finance, Charlie Sherry, catches up with Patrick McGimpsey from Crypto Tax Calculator to talk about the latest guidance from the Australian Taxation Office (ATO) on the taxation of Decentralised Finance (DeFi).

Watch the video here.

Plus, use our exclusive discount code BTC30 to enjoy a 30% saving on all CTC plans before 31 October 2024. View more details here.

Learn: Start your crypto journey with BTC Markets' beginner's guide.

Explore the world of cryptocurrencies with BTC Markets' beginner's guide. Our Learn Section is crafted specifically for newcomers eager to understand the crypto space.

What you’ll find in our Learn Section:

• Introduction to cryptocurrencies: Explore the fascinating world of cryptocurrencies and their potential role in the future of finance.
• Getting started in crypto: Learn the basics about crypto wallets, exchanges and creating an account.
• How to buy and sell crypto: Learn how to buy, sell, and store crypto on an exchange, and secure your assets with best practices.
• How to stay safe in crypto: Stay safe in the crypto space by understanding the common scams and how to avoid them.
• Crypto tax requirements: Understanding the regulatory landscape and tax reporting requirements for crypto.

Visit our Learn Section today and start your journey towards becoming a confident and informed crypto enthusiast. With BTC Markets, the future of finance is at your fingertips.

Explore now.

Mobile app fiat and crypto withdrawals.

Did you know that you can now easily withdraw fiat and cryptocurrency using our latest mobile app update?

This feature allows you to effortlessly manage your withdrawals and track transfer statuses through a comprehensive history list.

The feature is live in the most recent app release. Update your mobile app from the App Store (iOS) or Google Play Store (Android). Discover more about this exciting mobile app update here.

BTC Markets x Ticker News ‘Crypto Corner’ featuring Gerard Doyle.

In this episode of Crypto Corner, BTC Markets CEO Caroline Bowler chats with Gerard Doyle from the ASX Refinitiv Charity Foundation about the 2024 Markets Day for Charity and its $40M in donations since 1998.

We're proud to have supported this amazing imitative alongside ASX & Nabtrade on 15th October.

Watch on YouTube or Ticker News.

BTC Markets in the news

Livewire Markets: Part 2 of 3: Female investors ‘closing the gap’ in crypto.

The BTC Markets Investor Study Report, now in its third edition, covers data from our exchange spanning FY21 to FY24, drawing on comprehensive insights from trading behaviour and portfolio values, segmented by demographics of our 362,000 clients.

The rise of the ‘Crypto Queens’: According to the study, males had a 13% higher average portfolio size than women in FY21 and FY22. However, in FY23 and FY24, this gap reduced to -1.63% and -0.81%, respectively, indicating that females now hold slightly larger portfolios on the BTC Markets platform.

Read the full article here.

Fear & Greed podcast: Crypto not just for '25yo men in hoodies' anymore.

Sophisticated investors are moving into cryptocurrency, with trading volumes suggesting established investors are now shaping the future of digital assets.

Caroline Bowler, CEO of BTC Markets, talks to Sean Aylmer about the shift away from the small retail investors that typified the early crypto boom.

Tune into the full interview here.

Money News: More Australians are looking to invest in cryptocurrency, with women & those 55+ getting in on the act.

There is a growing interest in cryptocurrency. According to our CEO, Caroline Bowler, the trend is particularly strong among non-retail investors. Here’s what she had to say on Money News:

“SMSFs are coming in with larger trade sizes; they are effectively buying more of the currency and holding it for longer.”

Listen to the full interview here.

State of crypto

TLDR

• US spot Bitcoin ETFs record US$556M inflows in biggest day since June.
• Grayscale looks to convert multi-token fund into ETF.
• Avalanche Foundation set to buy back nearly 2M AVAX sold to Terra in 2022.
• Canary Capital Group files for first Litecoin ETF following XRP submission.

The weekly trading stats as of Monday, October 14th at 11:00 am AEDT, based on data from Tradingview in USD.

US spot Bitcoin ETFs record US$556M inflows in biggest day since June.

On October 14, US spot Bitcoin ETFs experienced their largest one-day inflow in over four months, with US$555.9 million flowing into the funds as Bitcoin surged to a two-week high of US$66,500. This significant influx brings the total net inflows for Bitcoin ETFs to nearly US$20 billion over the past 10 months, according to Farside Investors.

Notably, the Fidelity Wise Bitcoin Origin Fund (FBTC) led the way with US$239.3 million in inflows, while the Bitwise Bitcoin ETF (BITB) and BlackRock’s iShares Bitcoin Trust (IBIT) followed with over US$100 million and US$79.6 million, respectively.

ETF Store President Nate Geraci hailed it as a "monster day," emphasising the involvement of advisers and institutional investors rather than just retail traders.

In contrast, Ethereum funds struggled, with minimal inflows, indicating a stark difference in market momentum between Bitcoin and Ethereum products.

Source: TheBlock.co

Buy BTC/AUD on BTC Markets.

Grayscale looks to convert multi-token fund into ETF.

Grayscale Investments has filed to convert its Grayscale Digital Large Cap Fund (GDLC:OTCQX)into an exchange-traded fund (ETF) that tracks the CoinDesk Large Cap Select Index. This index measures the performance of major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (XRP), and Avalanche (AVAX).

The proposed ETF, if approved by the Securities and Exchange Commission (SEC), would trade on the New York Stock Exchange, moving from its current over-the-counter status. This marks Grayscale's fifth ETF initiative this year, following the conversions of its bitcoin and ether funds.

Despite facing significant outflows exceeding US$23 billion from its GBTC and ETHE funds, Grayscale aims to provide diversified exposure to the crypto market. The approval of these ETFs has spurred interest in launching additional funds that focus on smaller tokens, signaling a growing demand for diverse cryptocurrency investment options.

Trade ETH/AUD on BTC Markets.

Avalanche Foundation set to buy back nearly 2 million AVAX sold to Terra in 2022.

The Avalanche Foundation plans to buy back 1.97 million AVAX tokens, which it sold to the Luna Foundation Guard (LFG) for US$100 million in April 2022, shortly before Terra's collapse. The repurchase will cost US$45.5 million, despite the tokens currently being valued at approximately US$57.4 million.

This move aims to protect the tokens from bankruptcy complexities and reduce litigation costs. The settlement amount reflects the average market price of AVAX over a recent period.

The tokens were originally acquired by LFG to support Terra's algorithmic stablecoin, which subsequently lost its peg and contributed to a major market downturn.

This buyback agreement is pending court approval as Terraform Labs winds down operations after significant financial losses and a US$4.5 billion settlement with the SEC.

Trade AVAX/AUD on BTC Markets.

Canary Capital Group files for first Litecoin ETF following XRP submission.

Canary Capital Group, founded by former Valkyrie Funds co-founder Steven McClurg, has filed to launch the first exchange-traded fund (ETF) tracking Litecoin (LTC).

This submission follows a week after Canary filed for an XRP ETF, despite the firm being founded only one month ago. The initial filing is an S-1 document, necessary for companies seeking to issue new securities. However, it is a preliminary step and must be followed by a 19b-4 filing, which would allow for rule changes at the stock exchange and requires SEC approval.

The current filings do not disclose management fees or ticker symbols. Following the news, Litecoin's price rose by 5%, trading at US$66.46.

Trade LTC/AUD on BTC Markets.

Crypto Fear & Greed Index

Source: alternative.me

The week ahead: economic events

Thursday, October 17th

• Euro Area Deposit Facility Rate, Interest Rate and ECB Press Conference
• U.S. Retail Sales

Friday, October 18th

• Japan Inflation Rate
• China GDP Annual Growth Rate, Industrial Production and Sales YoY
• United Kingdom Retail Sales MoM
• United States Building Permits

Wednesday, October 23rd

• Canada Interest Rate and BoC Monetary Policy Report

Source: trading economics

Market reflections

Overview

Australia's economic activity remains sluggish, despite a slight improvement in its leading index, while inflation expectations have eased as CPI figures show a cooling trend. Dwellings approvals dropped, but private house approvals hit a two-year high. Globally, US inflation data presents mixed trends with rising core prices but a dip in sentiment. China faces deflation risks as inflation eases, though the trade surplus widened. In Europe, German economic sentiment surged, buoyed by improved inflation and export outlooks. The UK saw a drop in unemployment to 4.0% alongside lower inflation, while Canada’s unemployment rate also fell, with inflation cooling to 1.6%.

Australia

• Economic activity remains subdued as leading index shows slight improvement.
• Inflation expectations dip as Australia’s CPI shows signs of easing.
• Dwellings approvals decline while private house approvals hit a two-year high.

Economic activity remains subdued as leading index shows slight improvement.

The Westpac-Melbourne Institute Leading Economic Index in Australia remained nearly unchanged month-over-month in September, marking six consecutive months of muted performance. However, the six-month annualised growth rate of the index, which forecasts economic activity trends for the next three to nine months, improved slightly in September.

This indicates a marginally less negative outlook for economic activity moving forward. Lingering uncertainty on Reserve Bank of Australia monetary policy also weighed on sentiment amid concerns that the central bank could keep interest rates high for some time.

Inflation expectations dip as Australia’s CPI shows signs of easing.

In October, consumer inflation expectations in Australia decreased to 4.0% from 4.4% in August, marking the lowest level since October 2021. This decline aligns with a reduction in the inflation rate, as evidenced by August's CPI rising by 2.7% year-on-year—the lowest increase in three years and within the Reserve Bank's target range of 2% to 3% for the first time since August 2021.

Additionally, Australia's annual inflation rate stood at 3.8% in Q2 2024, close to a nine-quarter low of 3.6% in Q1. The Reserve Bank of Australia has maintained the cash rate at 4.35% for the seventh consecutive meeting, acknowledging easing cost pressures but projecting that inflation won't return to target levels until 2026.

Dwelling approvals decline while private house approvals hit a two-year high.

In August, total dwellings approved in Australia dropped by 6.1% month-over-month, reversing the previous month’s increase of 11.0%. This decline was driven by a significant 16.5% slump in permits for private sector dwellings, excluding houses, reflecting weakened demand for high-density apartments.

In contrast, approvals for private sector houses rose slightly by 0.5%, reaching a 22-month high, marking the fifth increase for the year.

Overall, while the dwellings approvals report portrays a concerning picture of declining approvals, particularly for multi-unit structures, the Private House Approvals Report presents a more optimistic view of the single-family home market. Together, these reports illustrate the complexity of the housing market in Australia, with distinct trends emerging in different segments.

Global

• US inflation data mixed in September; core prices rise, sentiment dips amid concerns.
• China's inflation eases in September, raising deflation concerns despite wider trade surplus.
• German economic sentiment soars as optimism rises for inflation and exports.
• UK unemployment falls to 4.0%, inflation drops to 1.7%, economy grows.
• Canada's unemployment rate falls in September as inflation drops to 1.6%.

United States

US inflation data shows mixed trends in September, core prices edge higher.

The U.S. inflation rate slowed to 2.4% in September, marking the lowest level since February 2021 but remaining above market expectations of 2.3%. Shelter and energy costs saw slower increases, while declines in gasoline and fuel oil prices contributed to the lower overall inflation rate.

However, core consumer prices, which exclude food and energy, rose by 0.3% on the month, ahead of the 0.2% forecast. Annual core inflation edged up to 3.3%, slightly above the previous two months' 3.2% figure, with transportation services and shelter costs continuing to exert upward pressure.

This unexpected rise in core inflation underscores the Federal Reserve's challenge in containing underlying price pressures, particularly in services.

Factory gate prices unchanged in September as producer inflation eases in the US.

US factory gate prices were flat in September, following a 0.2% rise in August and below expectations of a 0.1% increase. Service prices grew by 0.2%, driven by a 3% rise in deposit services, while goods prices fell by 0.2%, led by a significant 5.6% drop in gasoline.

Annually, producer price inflation slowed to 1.8%, a seven-month low, though slightly above forecasts of 1.6%. Core producer prices increased 0.2% month-on-month, with the annual core rate accelerating to 2.8%, exceeding expectations.

Consumer sentiment dips in October as inflation concerns grow.

US consumer sentiment fell to 68.9 in October, down from 70.1 in September and missing market expectations of 70.8, according to preliminary data from the University of Michigan. Both the current conditions index and the expectations gauge weakened, reflecting growing consumer concerns.

Inflation expectations for the year ahead rose to 2.9%, while the five-year outlook slightly improved to 3%. Despite frustration over high prices, long-term business conditions reached a six-month high, though personal financial outlooks softened.

China

Inflation rate eases in September, raising concerns over deflation risks.

China's annual inflation rate slowed to 0.4% in September, down from 0.6% in August, and below market expectations. This marks the lowest inflation rate since June and underscores growing deflation risks, prompting calls for more policy support from Beijing. Non-food prices fell by 0.2%, driven by a deeper decline in transport costs (-4.1%) due to lower oil prices, and housing prices edged down amid property market regulations. Meanwhile, food prices surged at their fastest pace in 20 months (3.3%), while core inflation, excluding food and energy, rose just 0.1%, the smallest increase since February 2021. The CPI remained flat on a monthly basis.

China's trade surplus widens in September, despite slowing export growth.

China's trade surplus expanded in September, though it missed market expectations. Export growth slowed to 2.4% year-on-year, the weakest in five months, following an 8.7% rise in August, while imports increased modestly by 0.3%, reflecting fragile domestic demand. The trade surplus with the US narrowed slightly to US$33.33 billion. For the first nine months of 2024, China’s trade surplus reached US$689.5 billion, with exports growing 4.3% and imports up 2.2%.

Germany

German economic sentiment soars as optimism rises for inflation and exports.

Germany's ZEW Indicator of Economic Sentiment surged to 13.1 in October, up from 3.6 in September, exceeding expectations of 10. This boost is attributed to stable inflation prospects and the likelihood of further interest rate cuts by the ECB, alongside positive signals from export markets, particularly in the eurozone, USA, and China. Improved sentiment towards China is linked to recent economic stimulus efforts by the Chinese government. However, the current economic situation in Germany worsened, with the assessment falling to -86.9, the lowest since May 2020.

United Kingdom

UK inflation cools to 1.7% in September, lowest since 2021

In September, the inflation rate in the UK eased to 1.7%, down from 2.2% in August, marking the lowest level in over three years. This drop reflects a significant cooling of price pressures, with inflation levels now well below the long-term average of 2.82% since 1989. The sharp decrease comes after the inflation rate peaked at a high of 11.1% in October 2022. This slowdown offers relief to households but raises questions about future monetary policy directions.

UK unemployment rate drops to 4.0%, employment surges to record high.

The UK’s unemployment rate fell to 4.0% from June to August, down from 4.1% in the prior period, in line with market expectations. Unemployment decreased by 141,000 to a seven-month low of 1.39 million, with short-term and long-term joblessness both declining. Employment reached a record high of 33.37 million, driven by a significant rise in both full-time and part-time roles. The number of people holding second jobs increased to 3.8% of the workforce, while the economic inactivity rate dropped to 21.8%.

UK economy grows in August, driven by production and construction sectors.

The UK economy expanded by 0.2% in August, recovering from flat growth in June and July. Services edged up 0.1%. The production sector rebounded with a 0.5% increase, largely driven by manufacturing gains in motor vehicles and metal products. Construction output also rose by 0.4%, following a decline the previous month, supported by a 1.6% rise in new work. Over the three months to August, UK GDP grew by 0.2%.

Canada

Canada's unemployment rate falls in September, defying expectations.

Canada's unemployment rate eased to 6.5% in September, down from 6.6% in August, contrary to forecasts of a rise to 6.7%. This marks the first decline in unemployment since January and helps ease concerns over a softening labour market. The number of unemployed individuals fell by 30,800, with a notable reduction in youth unemployment. Additionally, the economy added 46,700 jobs, the highest in five months and well above expectations. However, the participation rate dipped to 64.9%, and wage growth slowed to 4.6%.

Canadian inflation drops to 1.6%, lowest since 2021.

Canada's annual inflation rate fell to 1.6% in September, down from 2% in August, marking the lowest level since February 2021 and falling below market expectations of 1.9%. The decline was driven by a significant drop in gasoline prices (-10.7%), contributing to lower transportation costs. Shelter inflation eased as rent price growth slowed, but food prices saw a slight uptick. The trimmed-mean core rate remained steady at 2.4%. Monthly consumer prices decreased by 0.4%, fuelling speculation that the Bank of Canada may extend its rate-cutting cycle.

Scam awareness

AI-driven crypto scams

As the cryptocurrency landscape evolves, so do the tactics of scammers. Earlier this year, blockchain analytics firm Elliptic reported a concerning trend: the rise of AI-powered crypto scams.

These scams leverage artificial intelligence to create convincing deepfakes, scam tokens, phishing websites, and spread disinformation. It is crucial for crypto users to be vigilant and take necessary precautions to protect themselves.

Read the full blog here.

The ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

Want to get on our mailing list?

Sign up for free and join over 362,000 Australian traders who receive the BTC Markets Weekly Crypto Wrap.

Feedback

If you have any feedback on our newsletter or want to request specific content, please submit a support ticket and we will respond shortly.

Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

The information does not purport to be complete, accurate or contain all of the information that a person may require to make a decision. It may also contain forward looking statements, which are subject to known and unknown risks, uncertainties, and other factors. We recommend you obtain professional advice before making any decision with respect to the matters discussed in this document.To the maximum extent permitted by law, BTC Markets will have no liability for any loss or liability of any kind: (i) arising in respect of the information contained (or not contained) on this page; or (ii) arising from a person relying on any information or statement contained on this page. The information provided is only intended for recipients in Australia. This information cannot be reproduced without our prior written permission.