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Weekly Crypto Brief 5th August

Weekly Comment:Another week passes in the world of crypto and as usual there is never a dull moment.  It appears that the warnings are coming thick and fast for the USA in terms of getting onboard with crypto and blockchain as opposed to stifling it.  Advocates are keen to avert another situation much like the 5G saga where American reticence to take it seriously has meant they are now miles behind their geographical competitors such as China, which in turn means billions in potential revenue going elsewhere.

The recent appearance of David Marcus, (Head of Facebooks Calibra Wallet) in front of Congress was an interesting watch, not least of all for the apparent ignorance and negativity exhibited by many of the panel who could probably be best described as luddites!  His warning that the USA need to embrace the technology or lose out may not have fallen on completely deaf ears as there now seems to be a bit more public support for crypto- from certain areas.   However, as for Libra itself, Facebook appear to be steeling themselves for potentially never getting it to market, being careful to publish some caveats in Facebooks recent quarterly report- could there be a U-turn on the cards?

In the UK, the FCA followed up their recent report by announcing that they will not be overseeing Bitcoin and Ethereum as they are outside of its remit.  Whilst this may appear to be pretty straightforward, they also then went on to say that they will be overseeing and monitoring security tokens and utility tokens, all of which doesn’t do a huge amount to mop up any confusion for newcomers to the space!  It also would appear that the shutters will be coming down on leveraged crypto trading before too long which comes as no surprise given the high volatility that currently continues to surround crypto.

As for the market itself, another strong week for BTC saw a sharp rebound in prices, a large uplift in volume as well as an increase in Bitcoin dominance.  There is much speculation surrounding the driving factor behind the move with many quick to point out that global geo-political tensions should not be ignored as a potential catalyst. With political turmoil in various countries for several reasons and cross-country trade wars ongoing, uncertainty seems to be prevailing on all fronts.  As former Wall St. trader and host of the Keiser Report put it: “confidence in central governments, central banks and centralized, fiat money is at a multi-decade low”.

The big thing now is, will the momentum lift that we have seen in BTC of late result in a push back through the 2019 high.  If it does, then there would be no doubt in our opinion that the market will want to have another crack at the all time high as a target before too long.

Have a great week.

 

 

Past Week Talking Points:

  • “There is a lot driving the ever volatile price of Bitcoin, but I think its value as a leading indicator into behind the scenes geopolitical tensions shouldn’t be ignored”  Peter Tchir- ex- executive director at Deutsche Bank
  • Mastercard appears to be looking into Blockchain and Crypto-related services with specific related job listings
  • “The increase in proliferation of digital asset projects outside the U.S., the movement of companies to leave the U.S. and projects to get started outside the U.S. is definitely getting people’s attention.” Jeremy Allaire, Circle CEO.
  • On August 10th, the “Sun Network” which is Tron’s scalability solution is launched.  Justin Sun claims the network will feature free transactions, 100 times lower fees, faster transaction confirmations and Dapp support
BTC Price:  $11,727

Last 7 Days: 23%  1month: 4.5%   12months: 67%With the past week of wider global issues we have seen BTC rally up and beyond the 20-day EMA for the first time in a couple of weeks.  With a large increase of volume into the BTC market and subsequent moves upward, we could shortly challenge and then break the more recent BTC downtrend which, if done, will result in a possible retest of back towards the $14,000 mark.  Some analysts feel the culmination of wider geopolitical issues will result in a squeeze toward the $15,000 mark, however with the natural volatility we see with BTC, keep an eye on momentum potentially falling and then profit taking kicking in which potentially could trigger a sharp pull back.

BTC Volume:
29thJuly: $14,800,761,599 (BTC price of $9,504)
5th August:$21,452,728,104  (BTC price of $11,727)
44.94% increase in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers:
1        Minex Coin              MNX            $0.296458           340.77%
2        EveryCoin                EVY             $0.000505           310.49%
3        Bitbook Gambling    BXK             $0.182737           186.43%
 

 

ETH Price: $230.74

Last 7 Days: 10.39%  1month: -20.64%  12 months: -43.40%ETH has had a decent pick up in the last week, relatively speaking, albeit there appears to be a distinct lack of momentum.  $235 seems to be a decent level of resistance in relation to the 20 day EMA and if we breach this level then momentum may pick up and a price target of $300 followed by $320 will ensue.  Any rejection of $235 and we could expect to see $200 and then $192 as support.

 

 

Market Cap. Dominance:

BTC: 67.8%
ETH: 8.01%
XRP:  4.47%

Other ALT-Coins: 19.72%

 

 

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.