CEO Update: Five Observations on a Dynamic Market

CEO Update: Five Observations on a Dynamic Market

The M2 team has been closely following the digital asset market’s reaction to Friday's US job’s report, the unwinding of the Japanese Yen carry trade and the results of these - as well as other contributing factors - across multiple markets.  

This short-term drawdown sits in contrast to the longer-term market outlook. One fueled by factors including outlooks of lower US interest rates, continued inflows into ETFs, and an increasingly favourable political environment - particularly in the United States - with both sides displaying increased positive sentiment and curiosity.

While markets are recovering, and the worst appears to be behind, investors should be prepared for continued volatility in the short term and set up their portfolios accordingly in line with their own investment strategies and risk appetite.  

We operate in a 24/7 dynamic market that reacts to a myriad of moments - from the entries and exits of big players, large buy and sell orders, election outcomes, regional conflicts and more. Not to mention market commentary that comes care of the most recogniseable names.  

Sharing below some observations our team have been sharing in the past 48 hours. I’ve found them interesting, and trust you will too.

1. BlackRock has still been buying BTC and ETH ETFs.
2. Stablecoins are holding… stable. Look at USDC and USDT, both in the past week, and month.
3. ETH liquid staking was stress tested, and didn’t depeg - showing the robustness of these protocols. This could be a bullish moment for ETH ETFs - as the stability and reliability of these mechanisms has been demonstrated during market volatility.
4. Crypto protocols have remained robust and reliable. Despite the turmoil, no blockchains halted, no users were forced liquidated or withdrawals frozen. This shows the strength of the infrastructure upon which we’re building. An infrastructure that proved itself prior during the CloudStrike incident a few weeks ago.
5. As we saw with the Yen carry trade, excess leverage can lead to market destabilization. Risk management and regulation is at our core. We operate out of the UAE, and are structured accordingly.

For UAE residents who are looking to enter the market during the dip, we’ve got you.  

For those looking at rebalancing their asset allocation, or exploring where they’re trading, we’re here too.

Either way, our recent fiat integration - a secure, simple and compliant pathway for buying and selling Bitcoin (BTC) and Ethereum (ETH) directly through UAE bank accounts, is here.

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Any views expressed in the above are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.