Market Insights

This post is a translation of the weekly cryptocurrency analysis by Crypto Lab, a wholly owned subsidiary of Monex Group (Tokyo, Japan). Monex is the parent of TradeStation Group. 

Summary

• Bitcoin (BTC) initially rallied on the industry’s favorable prospects and a drop in stocks. But it suddenly reversed lower as flooding in Sichuan, China, hit a mining center. BTC briefly dropped below the key $10,000 level but regained its footing to end the week little changed.
• Bakkt announced that it will begin spot settlement of BTC futures trading on Sept. 23.
• Binance announced the new digital currency project “Venus,” linked to fiat currency.
• The buying trend is likely to continue next week. BTC has support at $9,400 and resistance at $10,500.

Market Trends This Week

BTC was temporarily bid up, but retraced back to the $10,000 level.

BTC gained after Bakkt launched its Venus project. But then it fell after floods in Sichuan disabled some mining centers. That raised concerns about network deterioration lowering the hash rate. Government officials in Europe and the U.S. also suggested tighter regulations.

While these factors briefly pushed BTC under $10,000, it soon recovered and regained that level and was flat on the week.

This Weeks Topics

• Cryptocurrency exchange Coinbase completes its acquisition of Xapo’s corporate custody business. (8/16)
• BlockBase releases open-source “Satellites” allowing a marketplace based on non-fungible tokens. (8/16)
• Bloomberg says BTC’s price action is potentially bearish amid a series of lower highs. (8/16)
• Intercontiental Exchange’s (ICE) Bakkt will support spot delivery for futures as early as Sept. 23. (8/17)
• Rakuten Wallet begins a spot-trading service for cryptocurrencies. (8/19)
• Crypto exchange Binance launches Venus as a stablecoin initiative, linked to fiat currencies. It’s seeking collaboration with government and businesses. (8/19)
• Japan’s Kyushu Electric Power announces the launch of the local-currency “Tsunaka Currency” and the Orb DLT platform. (8/20)
• AndGo and Digital Asset Markets agree to collaborate on a crypto-asset wallet service (8/20)
• Levias supports the financing of the “Japan Solar Token Offering (J-STO),” a token-based solar-funding system. (8/20)
• Gumi Cryptos and NEO Foundation form a strategic partnership to advance into Japan’s blockchain market. (8/20)
• Investment in SaaS / AI specialized VC Reality Accelerator and Zenport, which provides trade business SCM service “Zenport.” (8/20)
• World Bank issues $33.4 million of bonds backed by Ethereum (ETH). It was the organization’s second crypto-linked debt sale. (8/19)
• Decurret launches an electronic money-charging service, leveraged trading and ETH handling. (8/21)
• Deloitte launches a product supporting blockchain-solution demonstrations. (8/21)
• European authorities question Facebook’s (FB) Libra for potentially anti-competitive behavior. (8/21)
• U.S. Secretary of State Michael Pompeo says cryptocurrencies should be regulated like SWIFT remittance payments. (8/21)
• Rakuten launches an iOS app for Rakuten Wallet. (8/22)

Next Week’s Market Forecast

BTC has risk of a drop below $9,400 if momentum continues to slow and sentiment keeps weakening. However, several positive developments in the industry could provide a boost. Those includes initiatives in Japan like Rakuten Wallet’s exchange service, bitFlyer’s T-point program and Dekalet’s electronic money-charge service.

Globally, political uncertainty in Italy and increasing pressure from President Trump have the potential to impact cryptocurrencies.

On a short-term basis, we continue to watch $9,400 as support and $10,500 as resistance.

Next Week’s Topics

• 8/26-9/24: Icon Foundation awarding 3 million Icon (ICX) tokens to encourage voting in Public Representative (P-Rep) elections.
• 8/27-29: Turing Fest 2019 technology conference in Edinburgh.
• 8/28-30: C4 holds Blockchain Training Conference in Denver.