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. Due to the difference in time zone, we’re able to share Friday’s report today.

Summary

• Bitcoin (BTC) drifted back toward $10,000 this week as global equity markets pushed higher.
• Japanese officials approved LINE’s cryptocurrency-exchange business.
• Prices are expected to remain firm over the next week as investors target a potential interest-rate cut by the U.S. Federal Reserve.
• Binance, the world’s largest cryptocurrency exchange, plans to resume business in the U.S. after a period of regulatory uncertainty.

Market Trends This Week

Some safe-haven funds exited blockchain assets in the last week as global economic concerns eased. BTC retreated from its high of $11,000, losing momentum from the previous week.

Higher interest rates in the U.S., a weaker Japanese yen and fewer tensions between Washington and Beijing helped lift sentiment.

The crypto industry had some positive news events, like the popular Japanese messaging app LINE getting approval for its exchange business. There were also announcements from companies at CoinDesk’s Invest: Asia conference.

This Week’s Topics

• The Japanese messaging app LINE is registered as a Virtual Currency Exchange. (9/6)
• Commercial-real estate giant JLL (JLL) plans to build a property-management platform in Japan using blockchain technology. (9/9)
• The Japanese Virtual Currency Exchange Association (JVCEA) publish statistical information covering the January-July period. (9/10)
• Orb and Nippon Platform form an alliance to help Japanese businesses go cashless. (9/10)
• The People’s Bank of China says its proposed cryptocurrency would be similar to Facebook’s (FB) Project Libra. (9/6)
• Federal Reserve Chairman Jerome Powell says Libra could become “systematically important very quickly.” (9/6)
• Korean talent agency SM Entertainment plans to build blockchain network to help drive fan engagement. (9/8)
• Bloomberg reports that FB’s Libra will be a stablecoin backed by currencies including the U.S. dollar, euro and Japanese yen. The information followed an inquiry by Virginia Senator Mark Warner, a Democrat. (9/9)
• The Spanish province of Catalonia announces plans for a distributed citizen-identity platform for citizens (9/10)
• Tether launches a stablecoin linked to the Chinese yuan, using the Ethereum (ETH) blockchain. (9/9)
• Bitmain releases two new models of its “Antminer” mining devices. (9/10)
• Korean electronics giant LG reportedly may launch a blockchain-compatible smartphone to compete with the Samsung Galaxy S10 (9/10)
• U.S. Securities and Exchange Commission Chairman Jay Clayton says work remains to be done on a Bitcoin exchange-traded fund (ETF) before key deadlines in mid-October. He added progress is being made. (9/9)
• Nasdaq adds the Defix index to track decentralized financial tokens. (9/10)
• The Winklevoss’ Gemini exchange launches a virtual currency exchange supporting 18 types of virtual currency (9/11)
• The first tokenized initial public offering (IPO) appears on the Seychelles Stock Exchange (9/11)
• Coinbase invests $2 million to grow its decentralized financial ecosystem. (9/10)
• Coinbase says it may issue its own token. (9/11)
• Mastercard (MA) joins forces with blockchain platform R3 to establish a cross-border payment platform. (9/12)
• Market-data provider CoinGecko upgrades its rating system to assess cryptocurrencies on more than liquidity factors. (9/12)
• Legacy Trust establishes First Digital Trust to develop its legacy digital-asset custody division. (9/12)
• Binance, the world’s largest cryptocurrency exchange, will debut in the U.S. next week under the name Binance.US. (9/11)
• ETH developers postpone the next update, “Istanbul,” to November. (9/6)
• Developers warn of a possible bug in BTC’s Lightning Network. (9/12)

Next Week’s Market Forecast

Crypto prices are expected to remain solid ahead of the next Fed meeting on Wednesday, September 18. Investors keep buying equities and global stock markets are still pushing higher.

Should the bullish sentiment remain in risk-on assets, there could be less demand for BTC as a safe haven. Still, further rate cuts by the U.S. central bank could spur demand for blockchain assets as an alternative to fiat currencies.

The opening of Binanace.US could be another catalyst to drive attention to the space.

We’re watching $9,300 as support on BTC and $10,800 as resistance.

Next Week’s Topics

• 9/16-18: Shanghai International Blockchain Week held in Shanghai
• 9/18: Binance.US starts registering accounts