Weekly Crypto Update: Expansion and maturation
Cryptocurrency analyst, Saxo Bank
This week the entire crypto market cap fell 12.5%, according to coinmarketcap. Ethereum and Bitcoin fell similarly by 12% and 12.5% respectively since the start of the week. Combined, these two assets represent about 60% of the entire market cap for cryptocurrencies, while the next eight assets account for 23% of the market.
El Petro is largest ICO to date
Venezuela’s President, Nicolás Maduro, announced that the Petro raised $5 billion in its pre-sale. This amount of funding would make the pre-sale of the oil-backed crypto the largest ICO to date with individuals from 127 countries making bids for the cryptocurrency. While the country’s congress has declared the sale illegal, Maduro and his team continue forward hinting at the release of a gold-backed version of the Petro.
World’s largest crypto miner opens in the US
Bitmain, the world largest bitcoin miner and hardware provider is opening a US subsidiary according to leaked documents. Bitmain has an estimated 70-80% of the bitcoin miner market and 42% of the network hashrate is said to have made over $3bn in profits last year, putting it on par with chipmaker NVidia. This represents the expansion of the industry as many of the larger firms in crypto such as Bitmain and Coinbase are well-capitalised and looking to make acquisitions.
US industry follows the Japanese lead
The CFTC backs the Winklevoss brothers attempt to form a self-regulatory organisation (SRO) for the US crypto market. The proposed SRO would function as an independent non-profit to address the gap in today’s framework and potential future regulation. This announcement comes after the Japanese FSA allowed a group of Japanese crypto exchanges to form their own SRO after the Coincheck hack. This move could bring more certainty to the US crypto market.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.