BlockByte Monthly Newsletter: 'Uptober' Begins

​Hi Reader

In this edition of the BlockByte monthly newsletter, I’ll be touching on 3 key headlines over the last month and what the implications are for digital asset markets.

Let’s dive in!

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​1. ‘Uptober’

In case you've heard the term ‘Uptober’ floating around and wondered what that is, historically, October has been a bullish month for bitcoin and digital asset markets. In 10 of the last 12 years, October has delivered an average return of 21.5% for bitcoin. Ironically, it’s November that is the best month with average bitcoin returns of 46.8%, though this is skewed heavily due to an insane 449% return in November 2013.

2. China’s Troubles Mean More Economic Stimulus Could Push Digital Assets Higher

In late September, China unveiled a significant economic stimulus package aimed at reviving its sluggish economy. Deutsche Bank has said the stimulus could be the largest in its history, potentially eclipsing the $586 billion injected post-GFC. This stimulus could inject much-needed liquidity into markets and create favorable conditions for risk-on assets like digital currencies. Since the announcement on September 24th, bitcoin is up 7.75%, currently trading at $67.7k USD. One of the best correlations for bitcoin’s price action is global liquidity as you can see from the chart below.

3. De-Dollarisation and Central Banks Continue Purchasing Gold

In a recent report from JP Morgan, they note the trend of de-dollarisation continues as more countries diversify away from the US dollar. “In addition, central banks, especially those in emerging markets (EM), are increasing their gold holdings in a bid to diversify away from a USD-centric financial system. According to J.P. Morgan’s global commodities research team, central banks collectively bought a net 1,136 tonnes of gold in 2022, the highest annual demand on record, and another 1,037 tonnes in 2023.”

The report also notes that the world’s second largest oil producer, Russia, now prices and sells its oil to nations in their own currencies, rather than US dollars as was the case prior to the Russia-Ukraine conflict. The ramifcations of a weakening dollar is that over the long-term, more capital may look towards gold, but also scarce digital assets like bitcoin that are not regularly debased by central banks.
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At BlockByte, we understand the transformative potential of digital assets like bitcoin in diversifying and enhancing investment portfolios. We offer insured deposits of up to $40 million per investment account.

Our services include strategy and advisory workshops, investment and custody services for high-net-worth and wholesale investors. If you’re interested in having a confidential discussion please reach out to a member of our team or simply reply to this email.
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Thanks for reading,
James

James Brannan
Chief Executive Officer
BlockByte Capital
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(+61) 412 393 634
​james@blockbyte.com.au​
​https://blockbyte.com.au/​

BlockByte does not provide financial advice. We provide execution support, research and insured custody for investing in digital assets. Reach out to our team to discuss how we can help.

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