Daily Digest 10/12

Insight on the biggest news and charts that provide context for what’s going on in the market today.

The $44-million partnership with Nelnet is expected to offset 1.5 million tons of carbon dioxide over the next 35 years by leveraging solar energy.
In March of this year Nelnet also received an accreditation from S&P Global Ratings for $9.9 million.
This was put towards the company's project that aimed to build four photovoltaic solar projects in New York.
“We’re excited to work with Nelnet as we pursue our commitment to reduce the carbon footprint of financial services globally and to deliver on the promise of a carbon-negative cryptocurrency industry,” said Ken Weber, head of social impact at Ripple.

The international Monetary Fund is warning of a crash in prices of the housing and stock markets as the Federal Reserve and central banks are withdrawing the support they have provided throughout the pandemic.
Cryptocurrencies were cited as one of the risks to financial stability. The IMF is saying that crypto does not pose an immediate risk but urgently needs regulation since the "Crypto ecosystem is exposed to consumer fraud and market integrity risks.
“Shocks could be coming from the central banks themselves because they’re tightening more quickly than previously anticipated,” Tobias Adrian, director of the Monetary and Capital Markets Department at the IMF, said in an interview. “We worry that we could see a sell-off of sizable magnitude, given the level of stretched valuations.”
Both the IMF and the Federal Reserve; however, believe that whatever fall out that comes from this will be short lived.

Looking at the futures data is important as it lets you get another indication of market sentiment. As we have seen in recent weeks BTCs price has risen up until today.
Its also important to note that an overconfidence and overleveraging can occur from this as well. Overleveraging can be a main cause in major market crashes.
The Basis rate measures the difference between long term futures and spot market prices. We are currently in a healthy market based on contango which is a 5%-15% annualized premium.
Based on the 30 day Delta Skew there has not been any indication that options traders have become overconfident recently.

Although NFTs have seen a bit of a cool down since the end of August the space is still continuing to grow and the focus seems to have shifted away from Art to gaming.
Blockchain based games started gaining in popularity over the summer as Axie Infinity started changing users' lives in the Philippines. The play to earn feature was making citizens of the Philippines more money than their actual jobs.
Total NFT sales volume has still been trending downward overall but it is still a sign that the future for the space is still bright as it expands into different markets.

Coinbase Plans to Launch NFT Marketplace