Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Macro Overview — U.S. CPI Rises More Than Expected

The September U.S. consumer price index (CPI) report, released last Thursday, revealed that both the headline and core CPI exceeded forecasts by 0.1 percentage points, with the headline index rising by 0.2% and the core index increasing by 0.3%. Food prices significantly contributed to the stronger headline figure, despite declines in gasoline and broader energy costs, while rising service costs drove the core figure. Notable increases were observed in car insurance, medical care, clothing and airfares, with record jumps in specific categories such as college textbooks, sports tickets and jewelry. 

Year-over-year, the headline index increased by 2.4% in September, slightly down from 2.5% in August, while the core figure accelerated for the first time in 18 months, rising to 3.3% from 3.2%. Additionally, weekly jobless claims indicated a significant increase to 258,000, surpassing the median forecast of 230,000, likely influenced by recent hurricanes. This surge marked the highest level in over a year, prompting market reactions: stock futures fell, Treasuries rose, and the dollar remained stable. 

Meanwhile, as of 9:16AM in New York, two-year Treasury yields were down about 5 basis points at 3.97%, and interest-rate futures reflected growing confidence in a 25 basis-point Fed rate cut next month, influenced by the weak jobless claims data, while S&P 500 contracts dropped by 0.3%.

Weekly Crypto Highlight — HBO Claims Peter Todd Is Bitcoin Founder Satoshi Nakamoto

, filmmaker Cullen Hobak claims that Canadian Bitcoin developer Peter Todd is the elusive Satoshi Nakamoto. However, the evidence is inconclusive, drawing criticism from the Bitcoin community.

Todd, who contributed significantly to Bitcoin post-2012, including the replace-by-fee (RBF) protocol, is questionable as a potential creator due to inconsistencies in the evidence.

Reasons Peter Todd Is Likely Not the Inventor of Bitcoin

Many in the Bitcoin community, including experts and analysts, have expressed skepticism about the documentary's claims. Peter Todd himself responded with amusement, suggesting viewers will find the allegations humorous.

Total Bitcoin Spot ETF Flows.Source: CoinGlass, as of Oct 11, 2024

Bitcoin remained above $60K over the past week, buoyed by stronger-than-expected CPI data that triggered significant outflows on Thursday. While "Uptober" hasn't yet materialized this year, there's still time for a potential turnaround. In the meantime, Bitcoin's prospects on Polymarket are gaining traction, which could provide a boost to the leading cryptocurrency. Additionally, HBO's documentary claiming to reveal Satoshi's identity had no effect on Bitcoin's price movement.

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Weekly Institutional Insights — HBO Claims Peter Todd Is Bitcoin Founder Satoshi Nakamoto

In this article, we'll go through how you can use bbSOL on Raydium.

 within the Raydium ecosystem can significantly enhance the way you manage and grow your digital assets. This guide details how to effectively use bbSOL, a 

) that operates on the Solana blockchain, renowned for its rapid transaction capabilities and innovative yield-generation features. 

It’s unique among AMMs for its initial design as a hybrid model that can efficiently manage liquidity not just within its own pools, but across a broader ecosystem. 

Although originally intended to share liquidity with external 

, Raydium's pools now operate under a "Swap Only" model, focusing entirely on internal liquidity to optimize trading conditions within the platform.

Raydium stands out in the DeFi landscape for several reasons: 

: Connect your wallet by clicking on the 

button at the top right corner of the page.

: Input a token mint/pool address/ticker in the search bar or browse the pool list, then click on 

 Set your ideal price range which will decide the deposit ratio.

 Enter the amount you want to deposit in one of the highlighted fields. The other values will automatically adjust to match the deposit ratio you set.

. Then you can check your positions and harvest your yield!

bbSOL offers a versatile approach to earning staking rewards on Solana while maintaining liquidity. By using bbSOL, you can optimally manage your assets and enhance your potential returns. This guide provides the foundational steps to effectively utilize bbSOL on Raydium, ensuring you’re well-equipped to navigate this dynamic segment of the DeFi ecosystem.

Beginner

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How to Use bbSOL on Raydium

In this article, we'll go through how you can use bbSOL on Orca.

 (DeFi) can be as exciting as it is complex, especially with 

 reshaping our approach to cryptocurrency investments. In this tutorial, we’ll walk you through using bbSOL on Orca, ensuring you harness the full potential of this unique offering on one of 

 stands out in the Solana ecosystem as a 

 celebrated for its user-centric design and efficient trading mechanisms. It was crafted by DeFi veterans to enhance trading and liquidity provision experiences, catering to both novice and seasoned users. 

With a commitment to transparency and security, Orca has cultivated a reputation for reliability and innovation. Its distinctive feature, the Concentrated Liquidity Automated Market Maker (CLMM), not only enhances capital efficiency but also minimizes 

 for its users. This makes Orca an attractive platform for anyone looking to engage with the latest DeFi tools. 

CLMMs allow liquidity providers to allocate their capital to specific price ranges, significantly boosting the potential yields from transaction fees by focusing on areas with high trading volumes. This model offers several advantages over traditional constant product market makers (CPMMs), including:

Orca also emphasizes community and playfulness, fostering a belief that interacting with DeFi can be both fun and rewarding. This ethos motivates continuous innovation and improvement of Orca’s offerings, keeping it at the forefront of the DeFi space. Orca's approach democratizes financial tools by enabling permissionless pool creation, which allows anyone to start pools and implement strategies that align with their own financial goals. Advanced features supported by Orca's CLMM, such as mimicking 

 and optimizing for anticipated market movements, provide users with sophisticated tools typically found in traditional finance settings, thus enhancing user engagement and satisfaction.

Don’t have bbSOL? You can choose to get bbSOL here or find out how to do so here.

: Enter the amount you want to deposit in one of the highlighted fields. The other values will automatically adjust to match the deposit ratio for a full-range position

:Adjust your liquidity slippage by clicking on the 

: Check your positions and harvest your yield!

Navigate to your portfolio by clicking on the 

Click on the corresponding ellipsis button (...) of the position you would like to harvest yield from.

If you have multiple positions and you would like to harvest yield from all of them, simply click on the 

Review the details in your wallet including payable network fees and click 

Congratulations, you’ve successfully harvested your yield!

For Advanced LPs: How to Use bbSOL on Orca

Look for the pool you would like to add liquidity to either by scrolling down the list of pools or by searching in the search bar.

Click on the pool you would like to add liquidity too and the 

You can now amend your range according to how you’d like by dragging the sliders, selecting a preset 

 range, free-typing the prices in the lower and upper fields, and using the 

 buttons in the lower and upper fields. 

Input the amount you wish to deposit and the other values will automatically adjust to match the required deposit ratio for your chosen range.

toggle to automatically trade between the paired tokens to match your desired deposit. Alternatively, you can click on 

to deposit that quantity of tokens from your Wallet.

Adjust your liquidity slippage by clicking on the 

Utilizing bbSOL on Orca can open up new avenues for earning via staking while maintaining access to your assets for trading or other DeFi activities. This guide aims to help you navigate the integration of bbSOL into your cryptocurrency strategy, maximizing the potential of your investments while acknowledging the risks of inherently volatile cryptocurrency markets.

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How to Use bbSOL on Orca

FX investments encompass various instruments, such as spot transactions, forward contracts, currency options and ETFs.

Foreign exchange (FX) investments involve trading currencies in the foreign exchange (forex) market, the largest and most liquid financial market globally, with a daily trading volume exceeding $7.5 trillion. Investors engage in FX trading for various reasons, including speculation, hedging against currency risk and portfolio diversification. Understanding the mechanics of FX investments and the factors that determine exchange rates is crucial for effective trading strategies.

Spot transactions involve the immediate exchange of currencies at the current market rate. This is the most straightforward form of FX trading, with trades typically settled within two business days. Spot prices fluctuate continually based on supply and demand dynamics in the market.

A forward contract is an agreement to exchange a specific amount of currency at a predetermined rate on a set future date. This type of instrument allows investors to hedge against unfavorable currency movements. For example, a company expecting to receive payments in a foreign currency can lock in an exchange rate to protect its profit margins.

Currency options provide investors with the right, but not the obligation, to buy or sell a currency at a predetermined price before or on a specific date. Options can be used for hedging or speculative purposes, allowing flexibility in trading strategies. For instance, an exporter might use a currency option to protect against a decline in the value of the currency they’ll receive.

Currency-focused ETFs allow investors to gain exposure to FX markets without directly trading currencies. These types of funds track the performance of a specific currency (or a basket of currencies), making them an accessible option for those looking to diversify their portfolios.

Futures contracts are standardized agreements that obligate the buyer to purchase (and the seller to sell) a specific amount of currency at a set price on a future date. Although these types of contracts are similar to forward contracts, they’re regulated and traded on exchanges, providing more transparency and liquidity.

In a currency swap, two parties exchange principal and interest payments in different currencies. This can be an effective way for companies to manage currency exposure and facilitate cross-border financing.

For crypto enthusiasts, there’s great news: you can now trade gold directly on Bybit! 

 provides access not only to cryptocurrencies and forex, but also to contracts for difference (CFDs). Following are the exceptional benefits offered by MT5 on Bybit:

FX rates are influenced by a complex interplay of factors, broadly categorized into economic indicators, market sentiment, geopolitical events and central bank policies.

Interest rates are a critical factor in determining currency’s perceived value, highlighting the importance of understanding how central banks set monetary policy. Inflation significantly influences these decisions, as moderate inflation is linked to economic growth, while excessive inflation can lead to rate adjustments that impact currency strength. Interest rate hikes generally slow economic growth, but they also strengthen the currency, whereas interest rate cuts encourage borrowing and spending. 

Traders focus more on expected future interest rates than on current rates, anticipating shifts in monetary policy that could signal currency movements. Interest rate differentials are also crucial, as an increasing differential typically favors the higher-yielding currency, while a narrowing one supports the lower-yielding currency. Additionally, the distinction between nominal and real interest rates is important, with markets prioritizing real rates that account for inflation. 

Finally, sudden changes in economic reports can drastically alter interest rate expectations and currency values, making it essential for traders to remain informed about financial news.

Inflation affects purchasing power and currency value. Low inflation rates typically correlate with a stronger currency, as they indicate stable economic conditions. Conversely, high inflation can erode a currency’s value. For instance, if the U.S. experiences rising inflation while the Eurozone remains stable, the U.S. dollar may weaken against the euro.

Interest rates and inflation are closely linked, impacting currency values in the forex market. When inflation rises, central banks typically increase interest rates to control price levels and stabilize the economy. Higher interest rates make borrowing more expensive, which can reduce consumer spending and investment, ultimately slowing economic growth. However, such an environment attracts foreign investors seeking higher returns, leading to increased demand for the domestic currency. For instance, in India, a rise in interest rates can boost the value of the Indian rupee as foreign investors convert their currencies to invest locally.

Consider the inflation spike in India, which has resulted in a significant depreciation of the Indian rupee against major currencies. Traders who anticipated this trend and adjusted their portfolios accordingly achieved substantial profits. The following table illustrates how interest rate adjustments correlate with currency value changes during inflationary periods.

The relationship between inflation and currency values is generally inverse. Higher inflation levels can diminish a currency's competitiveness in global markets, leading to a decline in demand for that currency. For example, if India's inflation rate is 5% while Russia's is 2%, India's real exchange rate would be 3% higher than Russia's, even if nominal rates remain unchanged.

Key economic indicators provide insights into a country's economic health, and also influence FX rates.

The fundamental economic principle of supply and demand plays a crucial role in how trade balances influence currency exchange rates. When a country experiences a trade surplus, this indicates that demand for its goods and services is exceeding that in other countries. The resulting heightened demand for the nation's currency increases its value relative to other currencies. On the other hand, a trade deficit suggests lower demand for the country's currency, which can lead to a decline in its value.

Political Stability and Economic Performance

Countries with political stability and sound economic policies attract foreign investment. Political uncertainty — such as fraught elections or governmental instability — can lead to currency depreciation as investors seek safer assets. For example, political turmoil in a country can lead to capital flight, weakening its currency.

Traders’ perceptions play a significant role in FX markets. Sentiment can be influenced by news events, economic reports and geopolitical developments. Positive sentiment can drive demand for a currency, while negative news can lead to sell-offs.

Geopolitical events, economic crises and natural disasters can create volatility in FX markets. For instance, tensions in the Middle East or economic downturns can lead investors to seek safe-haven currencies, such as the U.S. dollar or Swiss franc, impacting exchange rates.

Understanding FX Investments and Determinants of FX Rates

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Unlocking FX Investments: Determinants of Currency Rates, and Trading With Bybit MT5

Crypto Insights

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: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Macro Overview — Fed Chair Gives Clear Signal of Policy Change

Federal Reserve Chair Jerome Powell signaled that the central bank is poised to begin lowering interest rates, indicating a shift in focus from fighting inflation to protecting the labor market. In a speech at the Federal Reserve Bank of Kansas City's annual conference in Jackson Hole, Wyo., Powell said, "The time has come for policy to adjust," confirming expectations of a rate cut in September.

Despite progress on inflation, Powell acknowledged "unmistakable" signs of slowing in the job market, stating the Fed does not "seek or welcome further cooling in labor market conditions." He affirmed the central bank has the tools to counter a more rapid deterioration, noting the current policy rate provides "ample room to respond to any risks we may face."

His remarks suggest the Fed is pivoting away from its singular inflation-fighting stance, with one economist noting the "inflation worry has faded into the background." While the path forward remains unclear, Powell emphasized the central bank's objective is to restore price stability while maintaining a strong labor market.

Investors widely anticipate a quarter-point rate cut in September, though questions remain about the pace and size of subsequent cuts. With key economic data still to be released, Powell has opted to preserve optionality, keeping the decision data-dependent.

Weekly Crypto Highlight — Sun Pump Flips Pump.Fun

Pump.Fun is a Solana-based platform that enables users to create and distribute their own tokens, particularly meme coins. Using Pump.Fun, users can quickly launch tradeable tokens with minimal effort and cost. We’ve 

 Pump.Fun and how it’s gained traction this year. 

This month, Pump.Fun saw a new challenger emerge in the form of Sun Pump, a project backed by TRON founder Justin Sun. Pump.Fun, once a popular meme token platform, has been gradually losing steam as many of the tokens created on it have failed to gain meaningful traction.

In contrast, the Sun Pump project, with Justin Sun's strong backing, is positioning itself as a new contender in the meme token space. Sun has expressed his unwavering support for the project, believing that it holds an undeniable position in the ongoing development of the cryptocurrency industry.

The arrival of Sun Pump presents a distinct challenge to Pump.Fun's dominance, as investors and speculators, may be drawn to the new platform due to Justin Sun's reputation and the potential for greater momentum. This shift in the meme token landscape could signal a change in the guard as the market seeks newer, more promising opportunities.

Number of token launches and daily revenue on Sun Pump. Source: Dune Analytics @hashed_official

We’ve observed a clear upward trend in the past week from Sun Pump, with a peak in daily created tokens reaching 7,000 and peak daily revenue up to $3.6 million. 

Number of token launches on Pump.Fun. Source: Dune Analytics @gryphsisacademy

Meanwhile, the number of new tokens created daily on Pump.Fun has plunged in the past week, falling below 7,000. Some of the liquidity might have been siphoned by Sun Pump, leading to relative underperformance of Pump.Fun against Sun Pump.

Meme token launchpads are important for mass adoption, as they remove technical barriers for non-tech-savvy users to create their own tokens. However, it needs to be clarified what unique features set the new Sun Pump platform apart from its competitors.

 of Pump.Fun tokens fail to gain any real traction, while a mere 1.4% of tokens are successfully listed on the 

 decentralized exchange for trading. These statistics highlight the significant challenge that meme token platforms face in driving both sustainable adoption and value creation. 

Total Bitcoin Spot ETF Flows.Source: CoinGlass, as of Aug 23, 2024

Bitcoin Spot ETFs have seen positive inflows for five consecutive days, while Ethereum Spot ETFs have continued to experience slight outflows. This dynamic helps explain Ether's underperformance relative to Bitcoin’s over the past week.

The particularly strong inflows into Bitcoin Spot ETFs on Friday of this week suggest bullish sentiment toward the world’s largest cryptocurrency, following the dovish remarks from the Federal Reserve's Jackson Hole symposium. In contrast, the ongoing outflows from Ethereum Spot ETFs indicate a more cautious approach from investors when it comes to the world’s second-largest cryptocurrency.

Weekly Institutional Insights — Crypto’s Meme Season — Sun Pump Challenges Pump.Fun

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards