Market Insights

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

Summary

• Bitcoin (BTC) was stable most of the week before dropping Friday.
• Ripple (XRP) and Stellar (XLM) had news catalysts.
• A data leak at BitMEX has little impact on prices.

Market Trends this Week

BTC was stable most of the week following a big rally at the end of October. However it dropped below the $9,200 support level on Friday.

Ripple (XRP) briefly spiked on the release of a new product but reversed and ended lower. Stellar (XLM) also surged after reducing the number of tokens in circulation. Most other altcoins were little changed.

Meanwhile U.S. equities rallied to new highs after Washington and Beijing moved closer on their trade differences. The popular derivatives exchange Bitmex suffered an email leak, but it didn’t seem to impact crypto prices.

This Week’s Topics

• International Business Machines (IBM) is now using blockchain technology to improve the efficiency of scallop fishing. (11/1)
• Argoland Blockchain was approved as compliant with Islamic Sharia law, unlocking a network of investors estimated at more than $70 billion. (11/1)
• Open source, decentralized payment network Stellar will be newly launched in early November. (11/1)
• CoinDesk reports that virtual-currency exchange Binance will open a new office in Beijing. The move comes as relations with the Chinese government improve. (11/2)
• Leaked records show a power struggle at the highest levels of mining company Bitmain immediately before its co-founder was fired. (11/2)
• Binance establishes a local subsidiary in South Korea. (11/2)
• The Korean Central bank once again opposes the idea of adopting a central-bank digital currency. (11/3)
• Xprin and Hyperledger release Interledger, an open protocol enabling payments across all digital currencies. (11/3)
• Representatives of the Colorado Blockchain Council have discussed potential legislation to form a special-purpose bank in the state for cryptocurrencies. (11/4)
• The International Organization for Securities Supervisors (IOSCO) announced that existing securities rules could possibly be applied to Facebook’s (FB) Libra. (11/4)
• China’s crypto mining slows as drier weather reduces the availability of cheap hydroelectric power sources. (11/5)
• The University of Malta is now offering a master’s degree in Distributed Ledger Technology (DLT). (11/5)
• China-based Huobi global, the giant virtual-currency exchange, will close U.S. accounts because of crypto regulations. (11/5)
• Microsoft (MSFT) has introduced a crypto token-issuance platform to facilitate token creation. (11/5)
• Popular crypto exchange BitMEX announced that a large number of customer email addresses were leaked but emphasized no further personal information was comprised. (11/5)
• The European Union (EU) wants the European Central Bank (ECB) to consider issuing a digital currency publicly. (11/5)
• Altcoin Stellar (XLM) rallies 25 percent after announcing it had “burned” about half its reserves to reduce tokens in circulation. (11/5)
• The Japanese Financial Services Agency will tighten regulations on digital-currency investment trusts. (11/5)
• Two researchers who wrote the controversial “Whale” paper on BTC last year have updated their view. They now believe that a single large investor — not thousands — fueled the 2017 crypto rally. (11/5)
• Financial Action Task Force (FATF) has called on institutions to prepare for widening use of digital identification systems around the world. (11/6)
• China begins an investigation into a ceramic manufacturer claiming to have investments in blockchain. The stock had rallied along with BTC recently. (11/6)
• Ripple division Xpring disclosed a new investment in Flar Network to facilitate its smart-contract execution. (11/6)
• Toyama Daiichi Bank is now allowing customers to shop in the bank’s own digital currency, using smart phones. (11/6)
• British tax authorities delivered crypto parameters for businesses, as promised last year. (11/6)
• China Suzhou Tongji Blockchain Research Institute and Fujitsu Research & Development Center will join forces to research blockchain technology. (11/6)
• IBM’s mineral-resource blockchain will be live next spring. (11/7)
• U.S. lawmakers will soon vote on a bill clarifying the Commodity Futures Trading Commission’s (CFTC) authority over crypto derivatives. (11/7)
• U.S.-based Ternio will now support XRP on a Visa (V) debit card. (11/7)
• Crypto platform EToro has acquired the Delta app, which lets users monitor crypto portfolios. (11/7)
• Nomura Research issues a report arguing that digital identities should be secured with blockchain technology. (11/7)

Next Week’s Market Forecast

Continued strength in the stock market and corporate earnings season has distracted investors from crypto market. Now as quarterly reports start to wind down, traders will be looking for evidence of funds returning to blockchain assets.

Trade negotiations between China and the U.S. remain the dominant force in asset prices. BTC probably needs to reclaim the $9,200 price level to continue its recent gains.

Traders will also watch Bitcoin Cash (BCH) next week with an update scheduled to take place.

Next Week’s Topics

• 11/11-15: Fintech Festival in Singapore
• 11/12-13: CoinMarketCap to hold The Capital conference in Singapore
• 11/13-14: Blockchain Expo to be held in Silicon Valley
• 11/14-15: Blockshow Asia 2019 in Singapore
• 11/16: Crypto DeFiance in Singapore
• 11/15: Bitcoin Cash (BCH) scheduled for a semi-annual hard fork