Author: Admin

By Jacob Pouncey | Saxo Bank Analyst | Crypto Current Contributor

This week the entire crypto market cap rose by 3%, bringing the market cap to USD 260 bn. Bitcoin and Ethereum rose by 2.5% and 1.5% respectively. Bitcoin has been gravitating around the USD 8k level, while ETH has found a new home around USD 250.

• Chinese stable coin use
  Crypto research firm Diar released a report on the most popular stable coin USDT, Tether. The analysis shows that despite what some may believe, on-chain transactions flowing to and from Chinese exchanges dwarf volumes at other trading venues. Chinese exchanges are accounting for nearly 60% of the on-chain volume for USDT while Bitfinex and Binance account for a combined 31% of USDT on-chain volume. Additionally, the data, selected by Bitwise to argue that the Bitcoin market is more regulated and smaller than reported, is mirrored by the Tether volumes on Chinese exchanges. All this means that Chinese exchanges still play an essential role in global pricing. The actual legit trading volume is higher than reported in the Bitwise report.

• Hong Kong’s crypto industry at risk 
  The new extradition law could put cryptocurrency traders and firms at risk in Hong Kong should it pass. Hong Kong is looking to adopt a new extradition treaty that would strengthen the judicial reach of Beijing in the autonomous territory. This political uncertainty in the region could help support BTC prices as entities look to store or transfer value outside of Hong Kong. Additionally, the continued weakening of the CNY against the dollar could help support prices for BTC, given what we know about Tether’s volume on Chinese exchanges.
  
  
• Sino-Russian crypto relations
  Recently, an economic forum in Russia suggested opening a special financial center on the Bolshoy Ussriysky Island, which is split between both Russia and China. The center would serve as a hub for cryptocurrency trading and other foreign exchange markets. There has not been an official Chinese response to the proposal, but this would help strengthen the economic relationship of the countries in the region and open more economic channels outside of the USD dominated avenues.
  
  
• Cboe futures set to expire for the last time
  Next week will mark the end of an era that started back in December 2017 when both CME and Cboe launched Bitcoin futures products. The last Bitcoin futures will expire on June 19th on the Cboe exchange. Meanwhile, the CME group is experiencing record-setting volume for its futures product, so much so that it is one of the products with the highest turnover for the firm. It is clear that CME is the winner with volumes multiple times greater than its rival Cboe.

By Jacob Pouncey | Saxo Bank Analyst | Crypto Current Contributor

This week the entire crypto market cap rose by 8.5%, bringing the market cap to USD 270 bn. Bitcoin and Ethereum rose by 8.5% and 4.5% respectively. Over the weekend the Bitcoin price found support at the USD 8k level a now appears to be headed towards testing USD 9k as potential resistance. Year to date bitcoin has returned over 125% against the USD. 

• Bitcoin Whales accumulate
  The number of bitcoin addresses that hold 1k-10k BTC has increased to about a quarter of all circulating supply. Data from cryptocurrency research firm Diar suggest that Bitcoin Whales or holders with more than 1000 BTC have increased their total number of bitcoins held by nearly 26% since the start of the bear market. Additionally, retail traders or holders with anywhere between 0.01-100 BTC have added to there holdings. Looking at the holding distribution from November 2018 to May 2019, the percentage of BTC on exchanges has fallen from 20% – 16%. This supply reduction on trading venues could be a factor that is helping support the spot Bitcoin price since the recent bottom in December 2018.

• The Swiss stable coin
  The Swiss stock exchange SIX is looking to develop its stable coin pegged to CHF. This Swiss Franc stable coin will help the exchange further the development of its cryptocurrency initiatives. It is still unclear if the token will only trade on the exchange. The company is set to launch its digital asset exchange later this year, which would represent a first for a European exchange to launch a complementary digital asset exchange with the purpose of tokenizing traditional securities and offering digitally native ones. This represents the continuous march from the traditional finance world towards a more efficient and hyper-digital financial infrastructure. SIX is already ahead of most European exchanges through its listing of several exchange-traded products that track the performance of the major cryptocurrencies. 

• Binance Margin trading soon
  The largest spot cryptocurrency exchange Binance will launch its margin trading “soon” according to sources close to the matter. However, the services will not be available to users in the US, Cuba, and Iran, among others. The rollout will be limited to a few pairs, but this move will almost certainly increase the trading revenue of Binance, which could help the profitability of the firm. The addition of margin trading on one of the world’s largest exchanges could add more leverage to the cryptocurrency market and increase volatility.

By Jacob Pouncey | Saxo Bank Analyst | Crypto Current Contributor

This week the entire crypto market cap fell by 3.5%, bringing the market cap to USD 250 bn. Bitcoin is up by less than 0.2%. Meanwhile, Ethereum rose by 13%. Bitcoin’s and Ethereum’s month-to-date return is 48% and 58% respectively. Bitcoin’s steam appears to be running out as volumes are declining while the price is consolidating around USD 8 k.

• CME reaches highest notional volume ever
  On 13 May the CME Group reported over a billion USD in record volume for their Bitcoin Futures products. This volume dwarfs that previous record by 50%. This brings the volume traded for at over USD 6.6 bn for May. We see a similar trend for other derivative providers, such as Crypto Facilities and Deribit showing record months in May. This trend highlights that institutions are increasingly using derivatives to both hedge and gain exposure to the nascent technology.

• SEC delays Bitcoin ETF again
  This week the SEC decided to delay the decision on the VanEck Bitcoin ETF, a day earlier than expected. Despite this surprise the BTC price barely moved on the news, possibly signalling the lack of speculation around an ETF approval. The new deadline for a decision is 22 August. The market has been unfazed by ETF decisions ever since the rejection of the Winklevoss ETF in March 2017. Approval of the ETF can only bring greater liquidity to Bitcoin, while never approving an ETF will only serve to disenfranchise specific investor segments.

• Bakkt set to test launch in July
  The physically settle futures exchange Bakkt announced that it would launch user testing in July. The company has been in close collaborationwith the Commodity Futures Trading Commission to develop fully compliant contracts and clearing. They are set to launch both a daily and monthly settled product. This product would be the first of its kind on a regulated exchange. Since Bitcoin is a unique bearer instrument, custody of the asset is of the utmost importance which is why the firm is seeking licenses as a trust company in New York. The approval of the New York Department of Financial Services is essential in the launch of Bakkt.