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Weekly Crypto Brief 20th May

Weekly Comment:

Heading towards the end of another month, and with the crypto space making more headlines in recent weeks, Facebook’s secret cryptocurrency project has also had an increase in publicity.  According to a Reuters report, Facebook has recently registered a new company called Libra Networks in Geneva on May 2nd with Facebook Global Holdings a stockholder in the new company that will “provide financial and technology services, and develop related hardware and software”, plans submitted on the Swiss register reveal. As secret as Facebooks crypto operation is, they are leaving trails around hinting about it with the hiring of two Coinbase compliance managers last week. With the setup of the new company and the Facebook crypto idea becoming more of a reality, US lawmakers have sent an open letter to the company seeking clarification on the currency’s purpose and implications. Along with this, privacy experts have expressed concern about Facebook’s extensive data collection practices leading up to this project.

Over the past week in the wider market,  large volumes have been going through on exchanges with more retail and institutional buyers flooding the market trading cryptocurrencies since the increase in price. However, one particular transaction has not gone unnoticed and is now being looked into, after a large Bitcoin sell order lead to $250 million liquidated on BitMex.  The order was recorded from BTC to USD and it involved 5,000 BTC being sold at $6,200 (a $31,000,000 trade!) This resulted in the price declining on other exchanges and whilst it was not a bad profit to take in the grand scheme of things, it is believed that the order could have been a mistake with the client actually meaning to sell at $8,200 and not $6,200. Either way, you would imagine someone will be getting told off!

In other news and at no surprise, the US SEC has delayed the decision on Bitwises’ Bitcoin ETF yet again as revealed in a filing published by the SEC on May 14th. They have also requested for a public comment from interested parties, saying “provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal”. The public comment period will last three weeks after the most recent amendments to the Bitwise ETF application are published in the Federal Register, followed by two weeks for responses.

Finally, and still on the subject of ETF’s, the latest VanEck decision is once again due tomorrow (21st May).  Expectations are for a final extension and no real impact on the market, however if the decision is anything other than that, a rejection of approval is likely to have a substantial knock on to the BTC price.

Have a great week!

Past Week Talking Points:

  • Bakkt to roll out first Bitcoin futures testing in July 2019
  • EBay denies rumours it will start accepting Crypto, despite advertising at Crypto event
  • “It is a useless currency, that’s what I believe. Look, I realize that people have different opinions, but to me, it’s garbage.” – Shark Tank’s Kevin O’Leary
  • Louis Vuitton and Christian Dior owner unveils blockchain platform to verify luxury goods
  • Huobi launches OTC Desk for Institutional investors
BTC Price:  $7,878
Last 7 Days: 1.47%  1month: 51.18%   12months: 0.54%There is currently strong support showing for BTC/USD at a level of $7,250 after the last week of trading which saw a rise above the $7,400 resistance level and even further through the next resistance level of $7,500 and the 100 hourly simple moving average. Subsequently, there was a break above the $8,000 resistance level where the price hung around $8,200 before correcting to $8,100. Bitcoin is currently trading in a bull formation above the $7,650 support, so long as we sit comfortably above this level then you can expect to see $8,300 in the near term and potentially a break through the resistance level moving further to $8,400.

BTC Volume:

13th May: $28,677,672,182 (BTC Price of $7,814)

20th May: $23,886,116,068 (BTC Price of $7,904)

16% decrease in trading volume in the last 7 days

Last 7 Days Big Market Movers:

1              SpectrumNetwork            SPEC             $0.000254            > 9000%
2              Matic Network                  MATIC            $0.021190            232.61%
3              Clipper Coin                     CCCX             $0.012342            206.92%

ETH Price: $251.29

Last 7 Days: 25.91%  1month: 46.35% 12months: -62.31%

Ethereum has not kept up with the Bitcoin rally in the past few weeks however in the past seven days ETH/USD has seen an increase of 57% while in the last 90 days it has reached gains above 122%. With a constant increase in price throughout last week Ethereum bulls pushed the price from $202 to a high of $280 by the end of the week, dominating any resistance levels however a correction was expected. This brought the price back down to $227 where support shows as it bounced nicely off the level and back into high $230’s mid $240’s. Immediate resistance is sitting at $265 and with a break through that level we could see $280 in the near future.

Market Cap. Dominance:

BTC: 57%
ETH: 10.8%
XRP:  6.8%

Other ALT-Coins: 25.4%

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.