Markets Insights
Next FOMC meeting: Sept 20th 2023.
- Probability of a 0bps hike → 88.5%
- Probability of a 25bps hike → 11.5%
The News Room
Dinari Raises $7.5M for Web3 Equity Trading Platform
Web3 corporate equity trading firm, Dinari, has raised $7.5 million in seed funding with contributions from investors such as Third Kind Venture Capital, 500 Global, ex-Coinbase CTO Balaji Srinivasan, and others. Alongside this funding announcement, Dinari unveiled its trading platform, dShare, designed to match tokens with their corresponding securities on a 1:1 basis, enabling users to access publicly funded corporate equity. However, this service will not be available in the U.S. Chas Rampenthal, Dinari's co-founder and Chief Legal Officer, emphasized their aim to use blockchain for broader access to corporate equity markets while ensuring stringent regulatory compliance on a global scale.
DOJ Alleges FTX Founder Sam Bankman-Fried Used $100 Million in Stolen Funds for Political Donations
The Department of Justice (DOJ) has accused Sam Bankman-Fried, the founder of FTX, of misusing customer deposits to contribute over $100 million to political campaigns of both major US parties prior to the 2022 midterm elections. Although a campaign finance charge against him was initially dropped in July, the DOJ reintroduced it amid concurrent fraud and money laundering allegations.
The indictment alleges Bankman-Fried knew about FTX's financial deficiencies, caused by his misappropriation of user funds, and yet continued to misuse them even leading up to FTX's unexpected bankruptcy in November 2022. After the collapse, he confessed to donating to both Democratic and Republican parties. Despite its mainstream appeal, FTX, once a major player in the crypto exchange world, faced scrutiny from influential figures such as Ethereum co-founder Vitalik Buterin. Bankman-Fried was recently jailed on suspicion of witness tampering, with his trial slated for October.
Crypto Market Maker GSR Faces Leadership Changes Amidst U.S. Operations Restructuring
GSR, one of the oldest crypto market makers, is undergoing significant internal shifts. Multiple key executives, including CFO Jonathan Hugh, have recently departed. Despite rapid expansion during the bull market, the firm experienced layoffs at the end of the previous year and is now reportedly scaling back its U.S. operations due to regulatory concerns and other factors. However, GSR remains committed to the U.S. crypto ecosystem and is integrating its GSR Capital division, focused on institutional crypto investment products, into its core operations.
Trading Desk Insights
Stock futures remain steady this Wednesday, with market participants keenly anticipating the release of the Federal Reserve's minutes from their July assembly. The Fed is set to disclose these minutes at 2 p.m. ET. It's noteworthy that during this meeting, the central bank escalated interest rates to their zenith in over two decades. As we approach the latter half of August, the three principal indices are poised to register a monthly decline. The Nasdaq and S&P 500 are currently projected to close the month down by 5% and 3.3% respectively.
The S&P500 has continued its path lower and is now trading below its 50-day moving average, a bearish technical element. It’s possible to witness a rebound at some point, but it would be highly unlikely to see prices breaking above their 20-day moving average located near 4550. Next target on the downside would be 4413.
Looking at Bitcoin, it’s hard not to sound like a broken record but prices continue to trade in a tight range with no clear direction in sight. The market is waiting impatiently for some type of catalyst to send prices higher or lower. As volatility has come down quite a bit to historically low levels, we believe it’s just a matter of time before the market witnesses another rise in volatility at some point in the near future. Possibly due to an approval of a BTC spot ETF, ETH futures ETF or because of more SEC related headlines.
ETHBTC is still capped by the infamous resistance level of 0.064. We don’t expect ETH to outperform BTC anytime soon in this market environment as the digital gold narrative with BTC remains top priority.
Economic calendar:
MONDAY
TUESDAY
- CAD CPI
- US retail sales
WEDNESDAY
- Crude oil inventories
- FOMC meeting minutes
THURSDAY
- US unemployment claims
- US Philly Fed Manufacturing Index
FRIDAY
Technical Charts
Altcoin Watch
Crypto payment processors are extending support for XRP, underscoring their commitment to fostering widespread adoption for the crypto market's fifth-largest asset. Users worldwide can effortlessly leverage XRP for transactions, storage, and currency exchange.
This pivotal announcement follows the recent legal resolution between Ripple and the SEC, affirming XRP's status as a non-security. Such definitive legal clarity has significantly bolstered XRP's trajectory into conventional commerce, bolstering its appeal as a viable payment alternative.
XRPUSDT has come down quite a bit since its run from $0.45 to $0.94. We have recently broken below both the 20-day and 50-day moving averages and are approaching the previous breakout level of $0.54 which may act as support in the short term.
As long as prices are trading below $0.65, we expect further advance towards $0.54.
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
Contact Us
Start trading with Secure Digital Markets today by e-mailing:
Trading@securedigitalmarkets.com
SECUREDIGITALMARKETS.COM