Institutional crypto broker sees market shifting to 'mildly bullish' in February

Markets • February 7, 2019, 2:27PM EST
UPDATED: February 7, 2019, 2:56PM EST
The Block

SFOX, a crypto institutional broker-dealer which recently raised ~$20 million led by Social Capital and Tribe Capital, released their January volatility report refreshing volatility, correlations, and other metrics to date in 2019. The full report can be viewed here, with some of the highlights including: 

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  • The SFOX Multi-Factor Market Index has swung from moderately bearish entering 2019 to moderately bullish entering February. The index is a proprietary model that looks at quantifiable market factors such as volatility, market sentiment/news coverage, adoption, etc.
  • BTC, ETH, BCH, and LTC all experienced steady declines in their 30-day historical volatility over the course of last month, and were all more volatile than the S&P 500 and gold.
  • Specifically for BCH, the report cites a reduction in volatility post-hash war as a sign that the market has digested the conflict between BCH and BSV.
  • Looking into February, the broker sees CBOE and CME futures expiration dates (Feb. 13 and 22, respectively) and the Ethereum Constantinople hard fork around Feb. 27 as events that could drive volatility indices during the coming month.

About Author

Ryan Todd is a research analyst at The Block where he focuses on the convergence of fintech and digital assets. Previously he worked at Deutsche Bank as an equity analyst covering consumer finance and payments companies, and also spent time at ConsenSys exploring the broader Ethereum ecosystem. Ryan holds a BS in Economics and Accounting/Finance from Florida State University, and MS Finance from Vanderbilt University.

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