Criptonite Asset Management

𝐖𝐞𝐞𝐤𝐥𝐲 𝐂𝐫𝐲𝐩𝐭𝐨 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐜𝐚𝐩🚀 This week, #Bitcoin continued its steady climb, nearing the $69,000 mark, bolstered by MicroStrategy’s announcement to become a "Bitcoin bank," leveraging its $15B Bitcoin holdings. This institutional confidence has kept optimism high as traders prepare for a potential breakout, especially with the upcoming U.S. elections just around the corner. There's even talk of Bitcoin hitting $70,000 soon if momentum holds! 📈 #Ethereum also shone, outperforming Bitcoin on both daily and weekly returns, rallying alongside other risk assets, trading around $2,100. #Altcoins had a mixed week: 📈 SUI soared 29%, hitting an all-time high of $2.24. ❕ NEIRO led the market with a massive 112% gain! 📉 On the flip side, FTX Token (FTT) dropped 20%, reflecting ongoing uncertainty around the FTX bankruptcy proceedings. With the U.S. elections and key economic data coming up, expect more volatility and potential opportunities. The market remains dynamic ---- 📊 The chart of the week, from CCData, takes a closer look at the returns of the top 100 crypto assets by volume since Bitcoin's upward surge a year ago, in October 2023, which marked the start of the current bull market. Memecoins like PEPE and FLOKI have stood out, delivering impressive gains of 1501% and 698%, respectively. #Solana also showed strong growth, rising by 599% despite its large market cap. On the flip side, CRV, ATOM, and ARB were the weakest performers, with declines of 39%, 32%, and 30% since October 14, 2023. Tokens launched after this period were excluded to ensure a fair comparison.

👀 𝐂𝐫𝐲𝐩𝐭𝐨 𝐌𝐚𝐫𝐤𝐞𝐭: 𝐎𝐜𝐭𝐨𝐛𝐞𝐫 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 #Bitcoin is trading around $67,000, driven by strong #ETF demand. On Monday, ETFs registered the largest net flows since the beginning of the year, with inflows averaging $110 million daily over the past two weeks. #Perpetualfutures open interest remains robust, with funding rates showing slight improvement as bullish sentiment grows. In the #optionsmarket, sentiment recovery is evident, as the put/call ratio indicates roughly twice as many call options as put options across all expirations. Open interest stands near USD 19 billion, with exposure leaning net long. The demand for hedging this exposure is decreasing, and the decline in delta skews suggests an increasing preference for call options, potentially strengthening the bullish outlook. The appetite for riskier assets is further evident in the crypto-exposed sectors such as miners and service providers, all of which have rallied significantly alongside Bitcoin. However, #volatility is expected to remain elevated in the coming weeks as we approach major macroeconomic events. The upcoming #US elections and the Federal Open Market Committee meeting will be closely watched by market participants. Political developments, especially the rising odds of a Republican administration, along with regulatory communications, are playing a pivotal role in shaping Bitcoin’s #outlook. Additionally, the aftermath of the #FTX case still looms over the market. As creditors prepare to receive cash distributions, there is potential for a reallocation of these funds into #crypto, which could influence market #liquidity and price #dynamics in the short term.

💡  𝐓𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐝𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐀𝐈 Steve Chen, the co-founder of YouTube, is supporting #Bittensor (TAO), a groundbreaking project that is transforming the way we develop and share #AI models. His recent endorsement through social media is a strong signal of confidence in the potential of decentralized networks to disrupt the centralized tech landscape. Bittensor’s unique approach to leveraging #blockchain and #decentralized computing allows anyone to contribute to the AI ecosystem, making AI more accessible and open. As a long-time advocate of innovation and disruption, Chen's backing could be a game-changer for the project. Check out his latest retweet on Bittensor here. If you're specifically interested in learning about TAO, skip ahead to the 12:59 mark of the video:  https://lnkd.in/evbgP8tx

💡  𝐓𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐝𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐀𝐈 Steve Chen, the co-founder of YouTube, is supporting #Bittensor (TAO), a groundbreaking project that is transforming the way we develop and share #AI models. His recent endorsement through social media is a strong signal of confidence in the potential of decentralized networks to disrupt the centralized tech landscape. Bittensor’s unique approach to leveraging #blockchain and #decentralized computing allows anyone to contribute to the AI ecosystem, making AI more accessible and open. As a long-time advocate of innovation and disruption, Chen's backing could be a game-changer for the project. Check out his latest retweet on Bittensor here. If you're specifically interested in learning about TAO, skip ahead to the 12:59 mark of the video:  https://lnkd.in/evbgP8tx

🌟 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐎𝐮𝐭𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐒𝐭𝐨𝐜𝐤𝐬 𝐚𝐧𝐝 𝐆𝐨𝐥𝐝 𝐀𝐦𝐢𝐝 𝐄𝐥𝐞𝐜𝐭𝐢𝐨𝐧 𝐁𝐮𝐳𝐳 🌟 #Bitcoin is taking the lead over traditional assets like stocks and gold this month, driven by growing optimism around a potential shift in the US regulatory environment after the upcoming presidential election. Bitcoin reached $ 66'437 at 1 am this night, marking a 4.90% increase for October—outpacing global stock indexes and gold. Both US presidential candidates have expressed varying degrees of support for crypto, with Donald Trump promising to turn the US into the “crypto capital of the planet,” while Kamala Harris recently expressed interest in developing a supportive #regulatory framework for the industry. According to Noelle Acheson, author of the #Crypto Is Macro Now newsletter, the positive price movement is primarily election-driven, with markets reacting to Trump's strong standing in polls and Harris’s more favorable stance compared to the current administration. Additionally, smaller tokens like #Bittensor (TAO) and #Sui (SUI), along with crypto-linked stocks like #Coinbase, have surged, reflecting broader enthusiasm in the sector. 📈 Could we see another big finish this October?

🚀 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐂𝐥𝐢𝐦𝐛𝐬 𝐚𝐬 𝐂𝐡𝐢𝐧𝐚’𝐬 𝐒𝐭𝐢𝐦𝐮𝐥𝐮𝐬 𝐃𝐢𝐬𝐚𝐩𝐩𝐨𝐢𝐧𝐭𝐬 𝐄𝐪𝐮𝐢𝐭𝐲 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 🚀 #Bitcoin reached its highest level in two weeks, jumping as much as 2.8% on Monday before settling around $63,890 in London trading. While China's stimulus efforts were met with mixed reactions, many speculate that investors are shifting their focus to crypto rather than Chinese equities. China’s recent policy updates left many wondering if enough is being done to tackle economic challenges, like deflation, which seems to be cooling a rally in Chinese stocks. This uncertainty could be pushing more capital into digital assets like Bitcoin, along with smaller tokens such as #Ethereum and #Solana, both of which also saw gains. Caroline Mauron, Co-Founder of Orbit Markets, said: “Markets are probably taking a disappointing #China stimulus to be positive news for Bitcoin, as capital rotation from Bitcoin into Chinese equities was understood to be previously weighing on crypto prices", suggesting that the lackluster stimulus efforts from China, which failed to meet expectations, might actually be benefiting Bitcoin. Additionally, other factors, including developments in the #US presidential race and the delayed repayment of Mt. Gox’s assets (estimated at around $2.9 billion by Arkham Intelligence), are helping to ease concerns of an influx of Bitcoin hitting the market, further boosting sentiment. As we head deeper into October, historical data shows that crypto markets tend to perform stronger in the latter half of the month. Could we see a repeat of the 20% average climb that October has delivered over the past decade? Let’s see what the rest of the month has in store for us.

#Ripple has launched a new crypto custody service for banks, aiming to diversify its business model beyond cross-border payments. This service allows banks and financial institutions to securely store digital assets for their clients, addressing a growing need as more traditional institutions explore digital assets. Ripple's move comes amid its ongoing legal battles with the U.S. SEC, but this diversification strategy signals its intention to further integrate blockchain technology into mainstream finance. The company hopes to position itself as a key player in institutional crypto adoption. https://lnkd.in/erT3hjCB

As the Federal Reserve is expected to continue lowering its key interest rate following a recent 50 basis point cut, analysts believe this could strengthen the investment case for #Ethereum, which has lagged behind #Bitcoin in 2024. Staking Ethereum, which has been less attractive due to low yields, may gain renewed interest next year, according to FalconX’s head of research, David Lawant. Ethereum staking allows investors to lock up their crypto to validate transactions in exchange for rewards, with the current staking yield around 3.4%. For the past year, the Federal Reserve’s higher interest rates made Ethereum staking less rewarding compared to the fed-funds rate. However, the spread between the two has been narrowing, and further Fed rate cuts could flip this spread in favor of Ethereum staking. With the Fed-funds rate potentially dropping below 3.5% by late 2024, according to futures data, staking returns may become more competitive. Additionally, if Ether’s price appreciates, staking yields could increase as well, potentially benefiting from a broader liquidity boost driven by global rate cuts and market optimism around the U.S. presidential election. At the start of October 2024, Ethereum was up 7.9% for the year, trailing Bitcoin’s 49.9% gain.

Monthly Crypto Market Recap 💡 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐚𝐧𝐝 𝐄𝐭𝐡𝐞𝐫𝐞𝐮𝐦: #Bitcoin remained the key driver of the market, pushing toward the $65,000 mark by the end of September. This rally was bolstered by optimism from China's economic stimulus program and investor anticipation of lower U.S. interest rates in the coming months. #Ethereum followed suit with increased institutional interest, as demonstrated by the rising basis rates in both spot and derivatives markets. 𝐀𝐥𝐭𝐜𝐨𝐢𝐧 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞: #Altcoins showed mixed performance during the month of September. Some, like Solana, PEPE, and STX, experienced positive market sentiment and inflows, while others such as ARB, DYDX, and ORDI faced sell-offs. Gaming-focused tokens, despite their earlier volatility, showed recovery towards the end of September. Immutable X (IMX) and other gaming-oriented blockchains gained traction as their ecosystems expanded. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐞𝐧𝐭𝐢𝐦𝐞𝐧𝐭: The anticipation of the SEC’s ruling on the Ripple case, alongside expectations of FTX refund distributions by November, heightened market tension. Meanwhile, #macroeconomic data from the U.S. concerning employment and PMI figures played a pivotal role in shaping the market’s outlook. 𝐃𝐞𝐫𝐢𝐯𝐚𝐭𝐢𝐯𝐞𝐬 𝐚𝐧𝐝 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲: The #derivatives market reflected rising interest, with #volatility expected to increase as Q4 approached. Investors began positioning for more turbulence around major events like U.S. elections and potential further regulatory developments. In summary, the past month was marked by a bullish trend in major cryptocurrencies, supported by a broader macroeconomic backdrop and rising institutional involvement, while altcoins faced a more volatile environment.

CoinShares' latest weekly report highlights a third consecutive week of inflows into #digitalasset investment products, totaling $1.2 billion. This trend may reflect expectations of continued dovish monetary policy in the U.S. and positive price momentum in the market. Total assets under management increased by 6.2% over the past week. Optimism around potential approval of certain U.S. investment products could have improved market sentiment, although trading volumes slightly declined by 3.1% week-over-week. Regionally, sentiment varied. The U.S. and Switzerland attracted inflows of $1.2 billion and $84 million, respectively, with Switzerland seeing its highest inflows since mid-2022. In contrast, Germany and Brazil experienced outflows of $21 million and $3 million. Bitcoin led the charge with $1 billion in inflows, sparking an additional $8.8 million into short Bitcoin products. Ethereum reversed its five-week losing streak with $87 million in inflows, the first since early August.