Each week, we share insights on the latest news and moves to impact the crypto market and the broader macroeconomic landscape. Want these updates delivered straight to your inbox? Sign up here.
BTC Fear & Greed Index
Bitcoin Fear and Greed Index is currently at 30/100 in the Fear zone. Down two points from last Thursday. The index reached a high of 34/100 over the weekend and a low of 30/100 today.
The crypto markets had a relief rally over the weekend, with multiple altcoins closing out the week in double-digit gains. However, the relief was short lived as the weekend gains were quickly wiped out. Bitcoin is maintaining its strength in the low AUD $30k range while XRP saw a 1.59% drop last week and is currently trading at AUD $0.7097. Total crypto market capitalisation increased by 1.12% last week, closing above the US $1 trillion benchmark.
Markets have shown resilience following major announcements from the RBA and the US Federal Reserve. On Tuesday the RBA Board increased the official cash rate target by 25-bps to 2.85%, the fastest rate hikes in history following consecutive 50-bps increases from June through to September of this year. RBA Governor, Philip Lowe, stated “Inflation in Australia is too high. Over the year to September, the CPI inflation rate was 7.3 per cent, the highest it has been in more than three decades.” He went on to state that “global factors explain much of this high inflation, but strong domestic demand relative to the ability of the economy to meet that demand is also playing a role.” The RBA once again confirmed that “returning inflation to target requires a more sustainable balance between demand and supply.” Further rate increases are expected over the coming months with economists forecasting 8% peak inflation by the end of the year.
The US Federal Reserve (Fed) raised the benchmark interest rate today by another 75-bps to 4% and indicated it will keep raising interest rates until inflation is brought under control. This marks the sixth consecutive increase in the benchmark interest rate, which will continue to impact consumer spending and access to affordable credit. Fed Chair Jerome Powell stated “It will become appropriate to slow the pace of increases, as we approach the level of interest rates that will be sufficiently restrictive to bring inflation down to our 2 percent goal." He added that "the ultimate level of interest rates will be higher than previously expected.”
Meanwhile, Eurozone inflation came in at a record high of 10.7% in October off the back of soaring energy costs. The surge was fuelled by energy prices which were 42% higher than in the same month last year. Prices for food, alcohol and tobacco are believed to have risen by 13.1% year-on-year.
Singapore Fintech Festival 2022.
One of fintech’s largest events in the Asia Pacific region has taken place this week, attracting industry participants and government representatives from around the globe. Our CEO Caroline Bowler was featured on multiple panels at the Singapore Fintech Festival, examining the challenges and opportunities for the crypto market in Australia and the broader APAC region. These discussions included the “Digital Assets Regulations in ASEAN+: Past, Present and Future” and “Size does matter, is institutional money really into crypto or is it just too small?”
BTC Markets continues to advocate for proportionate, appropriate and responsible regulation to facilitate capital flow, ensure proper oversight to demonstrate industry preparedness and, most importantly, protect investors’ interests. We will continue to strive for an open and transparent dialogue with government agencies to achieve a balance of consumer protections while encouraging innovation in the digital asset space.
Visa enters Web3 space.
Visa has submitted documents to the United States Patent and Trademark Office showing the firm’s intention to build out Web3 capabilities. The first trademark relates to the “management of digital transactions” for cryptocurrency wallet services and to manage transactions on the blockchain. The second patent allows the “temporary use of non-downloadable software” that provides recipients with a range of actions when interacting with digital assets such as cryptocurrencies and NFTs.
These patents are not unique, other legacy payment providers like American Express have filed similar patents that enabled them to service Web3 offerings in the not-so-distant future. In fact, some of these patents have been compiled to protect these companies, with Visa explaining to Coindesk “while not all patents will result in new products or features, Visa respects intellectual property and we are actively working to protect our ecosystem, our innovations and the Visa brand.” With blockchain solutions providing greater throughput for transactions, it can be seen why VISA are building capacity, whilst protecting their business capabilities.
XRP vs SEC lawsuit developments
The ongoing lawsuit saga between the Securities Exchange Commission (SEC) and XRP is continuing to evolve as Ripple gains greater support from industry participants. The SEC lawsuit claims that Ripple transacted as an unlicensed security and the government agency has been criticised for its heavy-handed approach to regulation.
According to a Forbes article, crypto law experts expect the SEC to lose the case which will set a precedence and severely limit the SEC’s authority to regulate crypto in the United States. As the outcome from the lawsuit could severely impact the crypto markets, support for Ripple has been growing. US lobby group, Blockchain Association and Coinbase
have both offered to assist via amicus briefs, which allow organisations to provide their expertise on issues relating to the case.
BTC Markets updates
Solana is coming to BTC markets.
The countdown is on. Solana (SOL) is set to go live on BTC Markets in the coming weeks. Deposits, withdrawals and post-only orders will be available prior to the market being enabled. We will provide updates via Twitter and email ahead of Solana being listed.
Our website is getting a new look.
We are in the final stages of a brand refresh which includes a new look and feel for our website, mobile app and emails. As a part of this work, we listened to your feedback and started hosting our newsletter online to make it more convenient and secure for you to access our weekly content.
You will still receive a weekly email from us but in a condensed with links to the landing page. Alternately, you can visit our blog page to read the latest market update every Thursday. Stay tuned for further updates.
Support Australia's 'Markets Day for Charity' on Tuesday 22nd November.
BTC Markets is proud to be a donor for the ‘Markets Day for Charity’ on Tuesday 22 November. Hosted by the ASX Refinitiv Charity Foundation, participants include ASX, NABtrade, Macquarie Bank and Citi. BTC Markets will be donating 100% of our trading profits from the day with proceeds going to a range of Australia-based children’s, disability, and medical research charities.
How can you get involved? It's easy, just log into your BTC Markets account and trade on the day.
When security matters, trade with confidence at BTC Markets.
Fraudulent schemes are on the rise in Australia, and some of them are targeting BTC Markets clients. We want to remind you of the importance of safe online practices, so that you can avoid falling victim to these activities. The most common scams right now include fake websites and social media posts that attempt to steal your personal information. Criminals may pose as representatives from companies that you interact with such as BTC Markets and use fake sites to trick you into handing over your personal information. These sites often look like real websites with logos and addresses that make them appear like they're legitimate.
You should never give out your personal information or provide credit card data over email or social media messenger chats. We have a dedicated page on how to 'Protect Yourself Online', which we encourage you to read. Being informed and taking simple measures is the best action you can take to protect yourself and your account while online. The Australian government’s ‘Scam Watch’ Website provides the latest information on how to recognise, avoid and report scams.
Disclaimer: The information provided in this email is for general purposes only. It should not be construed as professional financial advice from BTC Markets Pty Ltd. BTC Markets is not a financial adviser, and you should consider seeking independent legal, financial, taxation or other advice to ensure that the information relates to your unique circumstances. BTC Markets is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this information contained with this email. Prices are accurate as of 10:00 AM AEDT on 03/11/2022.