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) slipped under $10,000 as investors shifted funds into altcoins such as Ethereum (ETH) and Ripple (XRP).
• Singapore-based crypto firm Huobi expanded into Argentina, launching a fiat-to-crypto gateway.
• Altcoins garnered more attention this week.
• BTC traders should be watching $10,500 as resistance, and $9,300 as support.

Market Trends This Week

After the European Central Bank (ECB) cut interest rates last week, BTC initially gained ground. But as this week progressed, money flowed out of BTC and into altcoins such as ETH and XRP. ETH moved very strongly to the upside and reclaimed $200 for the first time in over a month.

The reason for the shift wasn’t clear. One theory pointed to the exchange launch in Argentina by Huobi, which handles a lot of altcoins.

This Week’s Topics

• Tokyo-based Unimedia plans to launch an in-house blockchain. (9/13)
• Aerial Partners releases its virtual-currency cloud software “Gtax” to facilitate back-office accounting for virtual currencies. (9/13)
• According to PricewaterhouseCoopers, the majority of funding for M&A in the crypto industry is now centered in Asia and Europe. (9/13)
• Singapore-based Pundi X plans to release its blockchain smartphone “Blok on Blok” (BOB) soon. (9/13)
• Korean messaging company Kakao will release the new cryptocurrency token Klay. (9/13)
• Warner Music and Dapper Labs will join forces to create a new blockchain named “Flow.” (9/13)
• CME seeks permission to double the upper limit of trading in BTC futures, a potential sign of market maturity. (9/13)
• Bank of New York Mellon (BK) gains importance in the virtual-currency space after being chosen by Bitwise for their new Bitcoin ETF and VanEck’s competing project, SolidX. (9/13)
• Russia’s largest bank, Russian Savings Bank, is working on a pilot blockchain project with Singapore-based commodity-trading firm Trafigura. (9/13)
• Spain’s largest lender, Banco Santander (SAN), issues $20 million worth of bonds in Ethereum. (9/14)
• Ethereum Classic (ETC) has enhanced connectivity to ETH in the Atlantis hardfork update. (9/14)
• BlockFI has abolished the minimum deposit requirement for a BlockFi Interest Account. (9/15)
• Israel-based exchange platform EToro announces the new programming language “LILA” to streamline derivative transactions. (9/16)
• The European Union’s first crypto-benchmarking license is approved. (9/16)
• Overstock.com (OSTK) subsidiary tZERO joins forces with media company BLOQ FLIX to tokenize the funding of movie production. (9/17)
• Japanese messaging giant Line (LN) rolls out the “BITMAX” virtual-currency trading service (9/17)
• After the French Finance Minister says that Facebook’s (FB) planned Libra currency could be a threat to currency sovereignty, a FB executive responded by saying that Libra does not generate new money and each unit must have an equivalent value in reserve. (9/17)
• Traders can now sell short cryptos through a new lending platform run by cryptocurrency broker Tagomi. (9/17)
• Deutsche Bank (DB) joins JPMorgan Chase’s (JPM) virtual-currency payment network. (9/17)
• Ripple (XRP) subsidiary Spring has raised $1.5 million for wallet development and international expansion. (9/17)
• Three North Korean hacker groups have been sanctioned by the U.S. Treasury on allegations of cyber crime. (9/17)
• The president of the ECB hinted that Libra would face stringent regulatory action. (9/17)
• Germany’s finance minister voiced concern over parallel currencies such as Libra in a panel discussion in Berlin. (9/17)
• Binance makes a $200 million investment in Chinese media firm “Mars Finance.” (9/17)
• Wells Fargo (WFC) will test stablecoins for internal payment. (9/18)
• HTC blockchain smartphones will be equipped with native support for Bitcoin Cash (BCH). (9/19)
• Tokyo-based game developer Arc announces that its blockchain game “Wallet Battler” is open for beta testing. (9/18)
• Crypto monitoring firm Basset has raised 50 million yen from Coral Capital. (9/18)
• China’s Inner Mongolia regional government launches an inspection to shut down BTC mining businesses. (All crypto mining is illegal in China.) (9/18)
• VanEck withdraws its application to launch a Bitcoin ETF with the U.S Securities and Exchange Commission (SEC). (9/18)
• Speaking at a conference, ECB director Benoit Coeure says that Libra can potentially challenge the U.S. dollar’s dominance in currency markets. (9/18)
• The German cabinet approves a national strategy for the use of cryptocurrencies. (9/18)
• Binance registration has begun for U.S.-based users, but 13 states including New York are left out. (9/19)
• Crypto exchange Huobi sees opportunity in Argentina amid the country’s uncertainty and inflation worries. (9/19)

Next Week’s Forecast

Traders will remain focused on the sustainability of the altcoin rally. Is it a short-term blip or a new trend?

Previously, strength seemed to alternate between BTC and altcoins. This changed over the last year as BTC dominated. This week’s action may suggest a return to the smaller tokens, but it’s too early to be sure.

Next week, Bakkt’s Bitcoin futures will begin trading. BTC traders should continue to pay attention to the $10,300 and $9,300 levels.

Next Week’s Topics

• 9/23: Bakkt to launch Bitcoin futures
• 9/28-30: DASH’s Europe convention to be held in Zurich