Invictus Capital: Weekly Wrap 29.10
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Market News
Traditional markets had a week characterized by a flattening bond yield curve, generally considered a bearish signal. Central banks have begun to concede that the so-called “transitory” inflation currently being felt the world over may persist late into 2022. This was despite faltering global growth expectations (compounded by a budding new pandemic wave in some regions), with the US this week reporting a significant miss of expectations for 3rd quarter GDP growth.
While markets are now expecting imminent tapering of US quantitative easing, and a mid-2022 rate hike, other central banks are taking a more proactive approach despite signs of slowing growth. This week Brazil’s central bank hiked rates by 1.5%, and the Bank of Canada abruptly ended their quantitative easing program and signalled the likelihood of a mid-2022 rate hike alongside an updated 2022 inflation forecast of 3.4% (from 2.4% prior). This growing stagflationary narrative has seen short-term bonds sell off, though real yields remain steady as inflation expectations are rising concurrently. Stocks have continued to perform well, alongside gold, due to their inflation-hedge credentials. US tech continues to outperform, driven in part by recent strong earnings reports. Chinese equities remain an outlier, with ongoing domestic issues translating into underperformance relative to other regions.
In crypto, Ether surged past $4,400 to make new all-time highs in an eventful week that saw its third upgrade in seven months. The Altair upgrade, which took place on Wednesday, was the first upgrade to the Beacon Chain before Ethereum moves to a proof of stake (PoS) consensus mechanism slated for 2022. The Beacon Chain introduced ETH staking last year, and is set to continue running alongside the current Ethereum chain until they integrate as part of the implementation of Ethereum 2.0 (the current Ethereum chain will become one of multiple shards connected to the Beacon Chain). The latest upgrade is a significant step closer to Ethereum’s new PoS, sharded blockchain, slated for launch in early-to-mid 2022. While Ethereum surged, Bitcoin cooled off after a frantic few weeks, with prices bouncing around the $60k level.
The altcoin market showed mixed fortunes this week, though one standout sector was metaverse-related projects. This coincided with rumours and an announcement later in the week that Facebook was renaming itself to Meta to signify a newfound focus on building the metaverse, a shared virtual environment that it bets will be the successor to the mobile internet. Invictus is also exposed to this fast-moving trend — read the blogpost linked below to learn about our incubation of Air Guitar Academy, and the new NFT Lab initiative.
There is no doubt that heightened volatility for financial markets, both traditional and crypto, is on the cards over the coming months, however, retail investors attempting to overtrade during these unprecedented market conditions are likely to end up licking their wounds. At Invictus, we are advocates of holding for the long-term in this industry with limitless potential. While markets, both crypto and traditional, may be subjected to a potential growth slowdown and resulting short-term market weakness, the longer-term outlook remains strong. Crypto in particular should benefit from its high-growth potential in an environment of low growth, as well as its role as an inflation hedge.
Indicators (22 October — 29 October)
- Invictus Margin Lending (IML): $1.29, +14.56% (weekly compound annualized rate)
- Crypto10 Hedged (C10): $8.45, +2.14%
- Crypto20 (C20): $5.31, +2.74%
- Invictus Bitcoin Alpha (IBA): $3.18, +3.62%
- Invictus Hyperion Fund (IHF): $0.482 (Updated Q3–21)
- Invictus Capital Token (ICAP): $11.48, -16.02%
- BTC: $60,465.68, -2.93%
- ETH: $4,289.00, +5.57%
- GOLD: $1,796.53, +0.61%
- S&P500: 4,596.42, +1.03%
Invictus Incubations: Invictus Makes Foray Into Fast-growing NFT Space
Invictus is proud to announce involvement in two new NFT projects: The Invictus NFT Lab — Out Of Africa Collection and the incubation of Air Guitar Academy.
Read more in the recent article here!
The Invictus Podcast: Episode 7
Today’s hosts Nick and André welcome our guest, Lennix Lai (@LennixOkex), the Director of OKEx!
Check it out here!
Invictus Yield Vault
Invictus Capital is thrilled to announce the public launch of the Invictus Yield Vault. The Yield Vault allows qualifying lenders the opportunity to lend a minimum amount of $25,000 BTC, ETH and/or Stablecoins for highly competitive interest rates to Invictus Alpha, Invictus Capital’s trading division.
The Vault is now seamlessly integrated into the investor portal on the Invictus Capital website! Prospective crypto lenders now have a single web location to effortlessly view Yield Vault information, crypto lending interest rates, FAQ information, and contact our Yield Vault Team.
To view our rates and contact our Vault team, please visit our landing page.
Borrow Against Your Crypto With Peace of Mind
Crypto users can now borrow against their crypto secure in the knowledge that their investment will not get liquidated.
Invictus Alpha (the trading company of Invictus Capital) has engineered a new product that is offering users the opportunity to borrow USD-based stablecoins (or BTC and ETH) against BTC and ETH with no risk of liquidation.
Check out the articles here and here. To inquire, please complete this form.
Schedule a call with the Invictus Sales Team
Schedule a call with Tom or Ivor from our Fund Sales team if you have any questions or need assistance with your Invictus investment(s).
Alternatively you can call us on +1 (345) 769–7491 between 7:00–16:00 GMT.
Other News & Links
- Invictus in the Press/News
1. Constructing a Balanced Portfolio of Invictus Capital’s Tokenized Crypto Investment Funds
2. Invictus funds achieve outstanding returns in Q3
3. WITH BITCOIN RESURGENT, INVICTUS CAPITAL HELPS CLIENTS FIND NEW PROSPERITY - Ethereum Price Hits New All-Time High After Altair Upgrade
- SolStreet News
1. The Great Gainsby begins 2 November 2021 at 12:00 UTC. Win your share of an est. $300 000 as well as exclusive NFT prizes! Sign up here: https://bit.ly/3w0mkOM - Economic Growth Rate Slows Yo 2% On a Sharp Slowdown In Consumer Spending
- Facebook Changes Name To Meta As It Refocuses On Virtual Reality
- Quantfury News
1. Digital News Interview with Lev Mazur: Q&A: Opportunities and challenges facing the retail trading industry
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