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) strength continued this week as prices crossed the $10,000 milestone.
• BTC is currently near its highest level since last October.

Market trends this week

BTC rose for the third straight week to its highest level since late October. Buyers have remained dominant despite a few minor pullbacks. They’ve also moved into altcoins like Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).

Stock investors have been unfazed by the spread of coronavirus in China. Gold, often viewed as a safe haven, has held its ground.

The ultimate impact of coronavirus on economies and asset prices isn’t yet clear. While the disease has dented growth expectations, it’s also kept interest rates low.

This Week’s Topics

• Unsettled open interest in Bakkt Bitcoin (BTC) futures hits an all-time high. (2/7)
• BTC on-chain deposits fell to the lowest level since November 2016, a sign of investors maintaining long positions in expectation of higher prices. (2/7)
• Charoen Pokphand Group, Thailand’s largest conglomerate, and Japan’s Bank Seven are backing a remittance startup known as Lightnet. (2/7)
• An Ethereum (ETH) source-code smart contract has been created in memory of Li Wenliang, the Chinese doctor who died of coronavirus after raising awareness of the disease. (2/7)
• Furniture giant Nitori Holdings has upgraded its logistics network to a blockchain platform. (2/9)
• Massachusetts Institute of Technology (MIT) researchers develop new technology to avoid congestion in off-chain crypto-payment networks. (2/9)
• Bitcoin (BTC) breaks above $10,000 for the first time since October. (2/10)
• Dante Disparte, vice chairman of Facebook’s (FB) Libra Association, says he isn’t worried about some large backers abandoning the project. (2/10)
• The Eth 2.0 developer team said Ethereum’s upgrade won’t occur in the first half as expected, but it’s 95 percent likely this year. (2/10)
• Ukraine has announced that there will be no restrictions placed on cryptocurrency mining. (2/11)
• U.S President Donald Trump’s proposed budget looks to expand cryptocurrency oversight by moving the Secret Service under the Treasury Department. (2/11)
• Reuters reports JPMorgan Chase’s (JPM) Quorum blockchain project may merge with the software developer Consensys. (2/11)
• The founder of Grayscale Investments (GBTC) said that crypto mining is shifting from China to North America. (2/11)
• The U.S. Marshals Service plans to auction off 4,040 BTC, valued at nearly $40 million. The tokens were confiscated by legal cases and forfeitures. (2/12)
• Alibaba’s (BABA) Ant Financial will use the blockchain to process coronavirus data for insurance purposes. (2/12)
• The service integration between FISCO Cryptocurrency Exchange and Zaif is now complete. (2/12)
• Hacker group dubbed “Outlaw” has reemerged, hijacking corporate computers to mine the cryptocurrency monero (XMR). It targets Linux-based enterprise systems. (2/13)
• The deputy director of the U.S Treasury’s Financial Crimes Enforcement Network (FinCEN) said new payment systems launched by social-media platforms should follow the same anti-money laundering (AML) rules as other institutions. (2/13)
• U.S. Treasury Secretary Steve Mnuchin said the government will soon announce new regulations to improve transparency in cryptocurrency markets. (2/13)
• Jerome Powell said the Federal Reserve will analyze digital currency backed by the central bank. (2/13)

Next Week’s Market Forecast

BTC’s bullish trend continued through late in the week, although traders will probably watch closely as prices approach supply areas. While governments and central banks have continued to comment on cryptocurrencies this year, no important changes have occurred yet. Meanwhile, the spread of coronavirus has lifted crypto prices in the short-term.

BTC’s resistance is at $10,500 and while support is around $9,700.

Next Week’s Topics

• 2/20: NFT.NYC, a non-fungible token event, will be held in New York.
• 2/20-21: Blockchain Economy event in Istanbul.

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