GB Market Commentary 27/10/2021
by Frederick Evans
The markets have taken a tumble this morning after bitcoin broke the $60,000 resistance. Investors have been on edge expecting a correction as the markets have looked over leveraged. The drop has been predicted by many analysts and provides an opportunity to those looking to buy the dip. Almost all coins are down over the last 24 hours.
A range of new ETFs are in the pipelines as Direxion filed for a product that provides an avenue for speculators to short the price of bitcoin. Direxion gave a warning to potential investors that the value of the product could go to zero. But with the effects of mass sell offs in bitcoin it has the potential to have strong returns in a bear market.
Alternatively, Valkyrie has filed for a leveraged Bitcoin futures ETF offering 1.25x exposure. While this is a low leveraged position it is likely that a range of leverages ETFs are offered in the future.
The chair of the Federal Deposit Insurance Corporation has confirmed that US bank regulators are exploring the framework to facilitate holding crypto in bank accounts to further regulate the crypto space. It is positive news as it shows authorities are making space for crypto and the role it will have in the global economy.
Ripple continues to make headlines as it has partnered with Pyypl, a blockchain based financial services technology company, in the Middle East and Africa to use XRP for cross-boarder payments in the Middle East. The Middle East has one of the largest remittance markets and is the next target of Ripples expansion after partnering with Japan’s SBI Remit in July. Ripples expansion demonstrates their optimism regarding the legal troubles with the SEC with Coinbase announcing that the Ripple case is going better than expected.