Record-setting options expiration week. DeFi markets seem to find some footing. Inflation is already here! This and more in this week's Bitcoin Economic Calendar. Click here for the video edition.
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The Bitcoin Economic Calendar:
Week of Monday September 28th to Sunday October 4th.
Market Commentary:
Bitcoin started last week at $10,920 and closed the week down $142 at $10,778 on Sunday for a small loss of 1.31% for the week. Amongst the noticeable market-moving events last week, we had a record-setting $1 Billion dollars in monthly option contracts that expired on Friday. Later on Friday night there was a reported hack on KuCoin exchange - details are still unclear, and we will likely be getting more information in the coming days, but Bitcoin and other assets are holding up so far.
Looking at the broader markets, the S&P 500 closed the last week slightly higher after a strong rally Friday that erased the losses for the week. Investors may look to continue this positive momentum this week and we are getting a slew of economic data out of the U.S., including GDP, unemployment and inflation. A lot of these data points come out on Thursday so it will likely be a day with high volumes and perhaps volatility.
Gold had a pretty bad week last week down $90 per oz or -4.63% lower at $1,860 per oz, however, it will be interesting to see how gold prices react to inflation data this week. Going back to the crypto markets, we see that the FTX DeFi index had a strong rebound and closed the week 4.3% higher after rebounding from a tumultuous drop.
It seems that capital markets markets may have found some footing and might be looking to continue a rebounding trend. Having said that, we do have a slew of economic data and earnings forecasts that could challenge the uptrend this week - we will share any relevant information throughout the week through our twitter account @hodlwithLedn.
https://www.tradingview.com/chart/oehuUdsL/
Inflation is already here
There was a great article over the weekend which was in fact tweeted out by Michael Saylor. The article went on to say that there are signs of inflation in certain goods within the U.S. economy - the goods that everyone wants. The article details that the prices of at-home food or groceries is up 4.6% compared to August last year, the biggest rise in almost a decade. This is similar to the story we saw out of Mexico last week - where their entire Consumer Price Index for the month of August was up 4.05% YoY and way above the Central Banks inflation target.
What can you do to protect yourself? Our Bitcoin and USDC Savings Accounts were designed to help you shelter your savings from inflation. Our USDC Savings Account pays 11.7% APY and our Bitcoin Savings Account pays 6.5% APY - guaranteed until the end of the year.
Difficulty Commentary
Lastly, on the difficulty front, hashrate continues its astronomical rise. Difficulty is still at 19.31 TH but set to adjust on approximately Friday of this week. The current difficulty adjustment is estimated to come in at 20.44 TH which would set another all time high in Bitcoin. To put this in context, back in the prior market peak of 2017-2018, Bitcoin Difficulty was at 1.6 TH. The network is over 10 times more secure today than it was back then.
Last Week’s Content Podcast:
[Spanish] Papa Bitcoins - Click here
[Last Week’s Issue] Last Week’s Economic Calendar - Click here
Market-Moving Stats:
Bitcoin Hashrate and Network Difficulty:
Current Difficulty: 19.31 TH
Estimated Next Adjustment: 20.44 TH +5.8%
Time to next Difficulty Update: 5 days (Friday October 2nd, 2020)
Difficulty All-time-high: 19.31 TH
Canadian Central Banking Updates:
Current Target Interest Rate: 0.00 - 0.25%
Current Overnight Money Market Rate: 0.23%
Source: https://www.bankofcanada.ca/rates/
U.S. Central Banking Updates:
Current Fed Interest Target Rate: 0.00 - 0.25%
Current Effective Federal Funds Rate: 0.09%
Source: https://apps.newyorkfed.org/markets/autorates/fed%20funds
Thursday October 1st:
U.S. Core Inflation for August @ 8.30 AM ET
Pepsi reports earnings before market open at @ 9 AM ET
Constellation Brands reports earnings after market close @ 4 PM ET
