Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Access both platforms from your single Saxo account.
Crypto Update: Rising in the East
Jacob Pouncey
Cryptocurrency analyst, Saxo Bank Group
This week the entire crypto market cap rose 4% to over $340 billion. Ethereum outperformed the market rising 6.5% over the week. Meanwhile, Bitcoin traded 1% higher, with its market cap sitting at $130 billion, or 38% of the total crypto market cap.
Bitcoin trading volumes have remained flat while Ethereum’s have increased over the last three months.
China warming up to cryptos again
President Xi Jinping of China recently stated that blockchain is part of a new revolution in technology. Additionally, China Central Television aired a segment where they stated that blockchain is ten times more valuable than the internet and informed the audience on blockchain technology and the risks associated. The Ministry of Industry and Technology, meanwhile, began releasing cryptocurrency ratings this month and plans to produce more, all while cryptocurrency trading has been banned in China since last year. It seems that the rhetoric coming from China has always been pro-blockchain, but now it is becoming more pro-cryptocurrency. China at one point dominated global trading volume; Beijing lifting its ban on trading by the end of 2019 is a highly underrated event as the market has become desensitised to news from China since the ban.
Coinbase expanding to Japan
Coinbase announced that it will expand to the Japanese market. The company hired former Morgan Stanley Japan banker Nao Kitazawa as CEO of its new office. This is the latest move by companies looking to expand to the Japanese market (SBI also recently launched its exchange in the country). Additionally, GMO technologies and Yahoo Japan are looking to open exchanges in Japan. Japan is arguably the most crowded digital exchange market and it will be difficult for Coinbase to expand to Japanese retail investors due to its limited asset offerings compared to competitors. Perhaps a more institutional clientele will suit Coinbase better in the Japanese market.
Endowments are beginning to invest
US university endowments are starting to invest in cryptocurrencies through hedge funds. John Lore, the founder of Capital Fund Law Group, stated that some of his university clients are investing in cryptocurrencies for strategic reasons. This highlights the further maturation of universities’ relationship with blockchain tech and the beginning wave of institutional money flowing into the space, but do not expect pension funds to invest until there is more regulatory certainty and, most likely, a digital asset ETF.
Latest Market Insights
Quarterly Outlook
-
-
Quarterly Outlook
Equity Outlook: Will lower rates lift all boats in equities?
Peter Garnry
Chief Investment Strategist
After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto... -
Quarterly Outlook
FX Outlook: USD in limbo amid political and policy jitters
Charu Chanana
Chief Investment Strategist
As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ... -
Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c... -
Quarterly Outlook
Commodity Outlook: Gold and silver continue to shine bright
Ole Hansen
Head of Commodity Strategy
-
Quarterly Outlook
FX: Risk-on currencies to surge against havens
Charu Chanana
Chief Investment Strategist
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo... -
Quarterly Outlook
Equities: Are we blowing bubbles again
Peter Garnry
Chief Investment Strategist
Explore key trends and opportunities in European equities and electrification theme as market dynami... -
Quarterly Outlook
Macro: Sandcastle economics
Peter Garnry
Chief Investment Strategist
Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p... -
Quarterly Outlook
Bonds: What to do until inflation stabilises
Althea Spinozzi
Head of Fixed Income Strategy
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ... -
Quarterly Outlook
Commodities: Energy and grains in focus as metals pause
Ole Hansen
Head of Commodity Strategy
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)