A message to our clients ahead of the US Election
We expect to see significant volatility through November 3rd and the days following the US election. Despite this increased volatility, Satstreet will show continuous best-in-class pricing and liquidity throughout this event.
And now back to our regularly scheduled programming…
This week has undoubtedly been the busiest week we’ve ever had and it is refreshing to see that the overwhelming majority of the action was on the buy side. Investors with a bad case of FOMO from the week prior were anxiously awaiting an entry point at $13k or below. They got their wish Monday afternoon when BTC dropped sharply to just below $13k, found a bounce, and then proceeded to rip faces almost touching $14k before selling off with the broader market on Wednesday (albeit, a minor selloff in comparison).
Our thoughts…
We’ve been at this for a while and we were fortunate enough to be doing what we do at the start of the epic 2017 bull run (good times!). Since the correction from all time highs mid-Jan 2018, we’ve experienced a few bursts of excitement (summer 2019 comes to mind) amid “crypto winter” but they didn’t exactly feel the same. We have a collective feeling that this time is different. In late 2017 everyone and their Uber drivers were rushing into cryptocurrencies without any knowledge of what they were getting into — hence the ICO boom akin to the dot com bubble in early 2000s. Ultimately, most of these investors got rekt and lost a ton of money in the process.
This time is different…
What has got us really excited is the sheer volume of smart money entering the space (primarily into Bitcoin… smart) amidst a turbulent macro backdrop that couldn’t be more ripe for a verifiably scarce asset with a now meaningful track record. Last week, we outlined publicly traded companies moving cash to Bitcoin as part of their treasury reserve strategy. This week, we’ve had companies reaching out to us to set up corporate accounts to do the same. The kicker: they thought they were alone and hadn’t even heard of other companies doing the same. For us, the trend has been validated.
The bottom line…
As more and more companies start to fear for their reserves amidst an economy held together by the money printer going brrrrr, some might follow the trend and buy Bitcoin as a hedge. There’s only so much Bitcoin to go around. There will always be a bid, but our guess is that bid will continue to rise into 2021 and beyond.
In case you missed it…
- Bitcoin user moved more than 88,857 BTC (~$1.2bn) for a fee of $3.58 making it the largest Bitcoin transaction by value ever link
- Southeast Asia’s largest bank DBS plans to launch a cryptocurrency exchange link
- Avanti Financial joins Kraken as a Wyoming-approved crypto bank link
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Satstreet serves private Canadian clients including some of the largest Bitcoin mining operations, institutions, and high net worth individuals. Satstreet has raised initial funding from Round13 Capital and several prominent investors.
