Bakkt and Bitcoin Breakout Volume, Congress and Crypto, Money Printing and the Man: eToro market update

Of the many takeaways from Zuckerberg’s appearance on Capitol Hill yesterday, the only thing that struck me was a comment from Rep. Tom Emmer who pointed out that a large majority of the questions asked were poorly prepared and / or not. report.

“Congress is a long way from catching up with some of the most basic technologies affecting our time. “

Indeed, there were probably at least as many, if not more questions about Facebook community standards policy than there was for the Libra project.

However, what seems to me is that Facebook’s strategy to highlight the difficulties of innovating in the United States, especially in the face of Chinese progress, has largely borne fruit. We hope that Facebook is successful in its mission to bring regulatory clarity to crypto USA.

We will take a close look at the market reaction below.

Please Note: All data, figures and graphs are valid as of October 24. Any trade involves risk. Only the venture capital you can afford to lose.

Traditional markets

One of the stocks often taken as a proxy for the global economy is well-known industrial equipment maker Caterpillar, which reported earnings yesterday with a rather depressing record. results.

It is now quite clear to everyone that the current trade wars that have made headlines over the past few years are inflicting real damage on business confidence. Even the game creation giant Hasbro To blame their recent problems and a 15% drop in stock prices on ongoing trade wars and tariffs.

What strikes me as interesting, and I know I use the “R” word a lot lately, is that investors don’t seem too concerned about CATunderperformance. Here we can see the initial low when the report was released (purple circle) followed by an average rally which took it to new highs.

Last Stand

Today we will say our tearful farewells to the outgoing President of the European Central Bank, who will make his final decision on interest rates before stepping down next week.

Super Mario Draghi has had a pretty good run as boss of the ECB. He will always be remembered as the man who saved the European Union with a 2012 speech in which he said that “the ECB will do everything that’s necessary to preserve the euro.

In this case, it took a lot of printing money. So let’s see his legacy. here we can see the balance sheet of the ECB since it took office in november 2011 until today.

In total, during his tenure, 2,200 billion euros were injected into the world economy. His last major act as president was to reinstate the quantitative easing program, which is expected to resume next month at a rate of € 20 billion per month for the foreseeable future.

Hoping that his successor can do more with less.

Return of crypto volumes

Shortly before Zuck took the stage before the House Financial Services Committee, Bitcoin broke a major support level he had been working on for almost a month.

Here is a graph that has been tweeted by stock analyst Mark Dow moments before the move. He totally called it out, maybe even caused it.

As we have often seen in the past, when Bitcoin becomes volatile, volumes increase. Yesterday was no exception. Most notable are the new Bitcoin futures on Bakkt, which shattered a new record level of trading activity. In total, 640 BTC changed hands with an estimated value of $ 4.8 million.

In major crypto exchanges, volumes have seen a significant breakthrough. According to data from Messari, the top 10 crypto exchanges saw about triple what they tracked in the past week.

At this point, it’s really not clear what caused the movement or how long the action will last. These things have a way of snowballing and if we can build momentum here it’s very possible that we’re in a bigger up or down movement.

However, if the activity was just Zuckerberg’s testimony or the downside breakout, there’s a good chance that volumes could fall back as easily as they rose. So I guess we’ll have to wait and see.

For light entertainment, feel free to watch this crypto duel between me and YouTube trader Erik Crown. According to YouTube, Crown “destroyed” me. But I guess I’m guilty here of breaking a cardinal “never read comments” Internet rule.

A big thank you to all of you for continuing to send your amazing comments, awesome ideas and thoughtful questions. They are my main source of inspiration and I appreciate everyone.

Have an amazing day ahead!

Best regards,

Mati Greenspan
Senior Market Analyst


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