Mooners and Shakers: Crypto market dips as 'Uptober' begins amid Credit Suisse and Deutsche Bank fears

If you thought the macroeconomic environment couldn’t get any shakier, news two big banks are possibly on the brink is fuelling stock market fears today. Bitcoin and crypto are anything but immune to this – will it wreck ‘Uptober’?

Rumours have been spreading far and wide across Twitter and beyond that both Credit Suisse and Deutsche Bank could be on the brink of collapse. These banking giants have about 2.7 trillion in assets under management between them.

Some are calling it another potential “Lehman Brothers moment”. The last time we heard that bandied about was late last year when fears surrounding the collapse of Chinese property developer Evergrande began to hit the mainstream.

It’s not as if this sort of speculation regarding these two banks is particularly new, but the fear, uncertainty and doubt is definitely circulating.

Credit Suisse is not the only major bank whose price-to-book is flashing warning signals. The list below is of all G-SIBs with PtBs of under 40%. A failure of one of them is likely to call the survival of the others into question. pic.twitter.com/LJA0YVrqco

— Alasdair Macleod (@MacleodFinance) October 2, 2022

Anyhoo, onto some daily crypto price action and other happenings.

Top 10 overview

With the overall crypto market cap at US$955 billion and down about 2% since yesterday, here’s the current state of play among top 10 tokens – according to CoinGecko.

And so the crypto market’s “Uptober” begins in earnest… with a dip. Hardly surprising when you take a look at what the S&P 500 and other major indices are doing.

Based purely on the historical data for Bitcoin performance in Octobers past, there is at least some kind of hope that we might see a better month for the crypto market. But the dismal larger financial picture globally has to be taken into account, and that’s clearly the driving narrative right now.

Recessions do not happen all at once. The economy is generally doing fine from the consumer side here in the U.S.

This is probably gonna be drawn out for many months.

The stock market is Macro bearish, yes.
But don't be tunnel vision.
Expected volatility 📉📈📉#Bitcoin $SPX

— Kevin Svenson (@KevinSvenson_) October 2, 2022

BTC volatility looking ready to breakout in the coming days… with short term price action bursting either to the upside or the downside. 👀

— Dr. Jeff Ross (@VailshireCap) October 2, 2022

Yep. Could go up. Could go down. Sideways, too.

As for the biggest movers in the top 10 today, it’s XRP that stands out, with a 5.5% daily loss. It was one of September’s best performers, though, so let’s see what fresh revelations emerge this month from its ongoing legal drama with the SEC.

Uppers and downers: 11–100: Chainlink’s SWIFT news and more

Sweeping a market-cap range of about US$7.14 billion to about US$372 million in the rest of the top 100, let’s find some of the biggest 24-hour gainers and losers at press time. (Stats accurate at time of publishing, based on CoinGecko.com data.)

DAILY PUMPERS

• Evmos (EVMOS), (market cap: US$451 million) +4%

• Maker (MKR), (mc: US$679 million) +3%

• Reserve Rights (RSR), (mc: US$413 billion) +3%

• PancakeSwap (CAKE), (mc: US$652 million) +1%

• TRON (TRX), (mc: US$5.6 billion) +1%

DAILY SLUMPERS

• Chiliz (CHZ), (market cap: US$1.17 billion) -9%

• Quant (QNT), (mc: US$1.73 billion) -6%

• Huobi (HT), (mc: US$539 million) -6%

• IOTA (MIOTA), (mc: US$767 million) -5%

• NEXO (NEXO), (mc: US$486 million) -5%

Around the blocks

A selection of randomness and pertinence that stuck with us on our morning moves through the Crypto Twitterverse…

https://twitter.com/100trillionUSD/status/1576655608333635586

https://twitter.com/alancarroII/status/1576714047659315201

The only thing that could save Credit Suisse is if it rebranded to Credit Suisse Inu

— LilMoonLambo (@LilMoonLambo) October 2, 2022

Is the European banking sector on the brink of a systemic crisis?

I have worked for a large European bank for 8 years – pockets of weakness and structural problems are undeniable.

But let's look into some data to make a non-emotional assessment.

A thread.

1/

— Alf (@MacroAlf) October 2, 2022

…in today's macro environment.

Again, I don't like European banks at all here.

But a non-emotional, data-driven assessment of the situation hardly calls for a ''widespread collapse'' moment, in my opinion.

Pockets of serious weakness will be there, though.

15/

— Alf (@MacroAlf) October 2, 2022

NEW!
👉Ex-Celsius CEO Alex Mashinsky withdrew $10 million weeks before the company froze client accounts – Financial Times

— Bitcoin Archive (@BTC_Archive) October 2, 2022