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Weekly Crypto Brief- 13th May

Weekly Comment:

An incredibly bullish last seven days for the cryptocurrency markets and particularly for the price of Bitcoin which saw the price rocket over 23% and prompted many to feel that perhaps the bleak “crypto-winter” is over.

Some commentators felt that many participants were waiting for the chance to enter the market and perhaps with a firm break through $6,000 the catalyst was there.  Upon reflection, there are a number of possible talking points as to why Bitcoin has had a move of such magnitude.  Whilst an exchange hack is never going to be construed as a good thing, in times gone by this news would trigger a large sell off and yet, on this occasion with the Binance hack prices held.  Investment management firm Fidelity is weeks away from formally rolling out its crypto related offering to investors which is surely making many sit up and take notice where perhaps there was previous reticence.  Furthermore all of this talk surrounding Facebook and their coin (whilst perhaps not a huge innovation technically) does once again mean adoption is coming via another behemoth of a business and that blockchain and cryptocurrencies are here to stay.

In other news that has also hit in the past week, whilst the market still awaits the approval of VanEck’s Bitcoin ETF, the United States Commodity Funds LLC has submitted a proposal for a crypto ETF. This has been revealed from their SEC filing on May 9th. The USCF Crescent Crypto Index is a market cap weighted portfolio of Bitcoin and Ethereum. This comes around after the SEC takes its time to consider the re-appeal by VanEck for a bitcoin ETF. In-between VanEck and USCF, Bitwise Assert Management also submitted an ETF proposal, (investors are suggesting that the additional proposals may delay a decision).

The SEC has already stated that they will come to a decision on the Bitwise ETF by May 16thand start any proceedings, if required, by May 21st. (The SEC is unlikely to be influenced however by the positive price action of the last few months given their open opinions over continuous market manipulation and volatility.) It is worth mentioning though that SEC Commissioner, Robert J. Jackson Jr, made clear that a bitcoin ETF is “inevitable” despite all the turmoil currently surrounding digital assets. The final date for any decision to be given for both Bitwise and VanEck are October 13thand 18th2019.

Elsewhere,Malta-based cryptocurrency bank Founders Bank has appointed former executive of Deutsche Bank as its new CEO, according to a Bloomberg report on May 9th. The bank which is backed by major crypto exchange Binance, plans to assist in Blockchain and crypto-related firms in securing financial services from traditional banking institutions, the report notes. The new CEO, Kenan Altunis, will reportedly join Founders Bank’s team in June. Founders Bank is reportedly working to receive a license from the Malta Financial Services Authority to legally operate in Europe. This move could allow for more users within the crypto space to open up with the cryptocurrency bank in hopes of more adoption to the use of cryptos in the publics day to day lives.

Whilst Facebook (mentioned earlier) and other big names in the tech space are working on their Cryptocurrency projects, PayPal has been the next team who have mentioned that they are “working on Blockchain and a cryptocurrency” however they are wary of the status of the cryptocurrency market at this current point in time and that volatility and instability of the individual cryptos are a hindrance to mainstream adoption. CFO John Rainey said that while the payment company has allowed merchants to accept payments in Bitcoin, the viability of the project failed to make sense as the merchants immediately converted the BTC to more stable currencies such as USD or EUR.

Have a great week, fingers crossed it is another positive one!

 

Past Week Talking Points:

  • Bitfinex raises USD 1 billion to support the launch of its own exchange token dubbed “LEO”
  • Facebook Coin to compete with PayPal and credit cards, and not with cryptos
  • Blockchain Week NYC and CoinDesk’s Consensus 2019 event, running all week out of the New York Hilton Midtown.
  • “Well, I think it is working. There may be other currencies like it that may be even better. But in the meantime, there’s a big industry around Bitcoin. — People have made fortunes off Bitcoin, some have lost money. It is volatile, but people make money off of volatility too.” – Richard Branson Virgin Group CEO & Founder
  • Institutional crypto wallet provider Curv has secured $50 million insurance for customer crypto assets via link up with provider MunichRe
 

BTC Price:  $7,075
Last 7 Days: 23.10%  1month: 38.23%   12months: -20.06%

A very bullish past week for the  “Digital Gold” of cryptocurrencies Bitcoin with the price rallying to a new 9-month high, and volume surpassing $10 billion within 24 hours.  $7,000 was a known resistance area for the price of BTC/USD; however the bulls did not care for this as the price increased further through $7,200, again through the resistance of $7,350 even testing $7,500 and settling well above the 100 hourly simple moving average.

After a swift correcting Bitcoin traded below the $7,200 support level and tested further down towards $6,700-6,800 support area. The current resistance now sits at $7,155 and with a clear break above here we would see levels of $7,300 again. The general trend is of a strong uptrend and with a break through the resistance levels we could see $7,500 in the short term.  Beware the pullback though as it is rare to see a straight line move without some form of profit-take!
BTC Volume:

6thMay: $15,737,171,804 (BTC Price of $5,746)

13thMay: $25,239,468,509 (BTC Price of $7,079)

60% increase in trading volume in the last 7 days

 

Last 7 Days Big Market Movers:

1               Blue Whale EXchange      BWX       $0.147388           > 9000%
2               Japan Content Token        JCT         $0.173653           288.34%
3               DAPS Token                     DAPS      $0.000324           153.92%

 

ETH Price: $189.83
Last 7 Days: 9.15%  1month: 14.17% 12months: -74.14%

Ethereum followed suit with the bull run on the majority of the major cryptocurrencies over the past week with a $20 rally last Monday reaching a resistance level of $190. Subsequently, we saw a pullback throughout the week bringing the price of ETH/USD closer to the support level of $170, trading at an average of $176 for the majority of the week. Bullish momentum then started to pick up heading into the weekend, which is when we saw the big push from $175 to a high of $202, speeding through multiple resistance levels.  A correction was shortly expected taking the price as of now to $190 with support levels at $185 and strong resistance just below $200.

 

Market Cap. Dominance:

BTC: 58.7%
ETH: 9.40%
XRP:  6.20%
Other ALT-Coins: 25.70%

 

This newsletter is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments  or participate in any investment (or other) strategy.