Invictus Capital: Weekly Wrap 30.07

Bitcoin, spurred by bullish sentiment in the wake of the B Word conference and with help from a massive short squeeze at Sunday night’s CME open, saw its price explode to around $40,000 on rumours of Amazon planning to implement crypto payments by year-end (and as high as $48,000 on Binance perpetual swaps). However, the cryptoasset seems to be running on empty after Amazon denied the rumours, with prices pointing down following today’s options expiry, a notoriously volatile period for the market. Many believe Bitcoin will remain range-bound as the asset’s momentum recharges.

The Amazon rumors are easy to believe with major exchanges continuing to drive users into the ecosystem, with Crypto.com reporting a two-fold increase in global crypto users over the last four months — to 221 million by end-June. In other news, the worldwide soft drink behemoth, Coca-Cola, is testing the crypto waters and looking to spread their influence in the virtual space with plans to release NFTs that can be used in Decentraland, the blockchain-based virtual world. All the proceeds will be donated to the Special Olympics International. This marks the company’s first significant involvement in the blockchain space since the 2020 partnership with digital asset platform Centrapay, which gave Aussies and New Zealanders the ability to use crypto for vending machine purchases.

In traditional markets we saw the US Fed’s interest rate decision (with rates held steady), accompanied by the closely-watched statement from Chairman Powell. The Fed is seemingly happy with the pace of the recovery and deem current financial conditions to be sufficiently accommodative, with Powell hinting at year-end tapering of QE if the recovery’s pace can continue. This is in line with an apparent shift in tone when talking about the transitory nature of inflation, with market participants interpreting part of Powell’s statements as an admission that “transitory” inflation may be anything but (with the Fed seemingly conflating the meanings of impermanent and transitory).

However, this slightly more hawkish stance needs to be weighed up against the subsequent 6.5% YoY US GDP reading this week, which fell far short of expectations, as well as the impact of the Delta variant ravaging the less-vaccinated regions of the US. These make tapering less likely. These latter effects seem to be dominating, with bond yields continuing down with the dollar over the week, and gold climbing. Today’s PCE inflation readings released later today will continue to color the picture for investors.

In Europe, where the vaccine rollout has lagged the US so far, a less vaccine-hesitant and more trusting population is helping the region pull ahead in vaccinations — an above-expectation GDP reading also supports the outlook for the region. This helped European equities at least keep pace with the S&P500 — which again breached all-time highs on the back of estimate-beating tech stock results and a more inflationary outlook. Chinese equities also performed well as regulators tried to soothe worries in the wake of the recent uncertainty-driven sell-off that has hit Hong Kong and mainland markets.

Finally, Invictus-incubated SolStreet protocol released their Litepaper and are set to launch the first phase of their $600k paper-trading competition on Monday. Sign up here to stand a chance of winning STRT tokens!

Indicators (23 July — 30 July)

SolStreet.finance, a strategic seed investment of Invictus Capital, has announced ‘Money Never Sleeps’, a 12-week series of trading competitions with approximately $600,000 in STRT tokens up for grabs for investors and fund managers.

The first competition begins next week! It is entitled The Wolf of SolStreet.

Read more here.

At Invictus Capital, our goal is to democratize finance and provide investors with advantageous investment opportunities. ICAP is a community token aiming to reward our investors and give back to our community.

It is the last chance to stake for a chance to win! The competition ends July 31 11:59 GMT.

Learn more about the promotion and conditions here.

www.invictuscapital.com

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