Crypto Update: Duality in the crypto market
Cryptocurrency analyst, Saxo Bank
This week the entire crypto market capitalisation increased by 23% on the back of a Bitcoin rally. The number one asset by market cap, BTC, increased 18% over the week. Investors cited a short squeeze, reduced selling pressure from tax liabilities and Bitcoin being deemed Sharia law compliant as key drivers behind the rally. Additionally, Ethereum saw an increase of 24% over the same period against the USD.
Major exchange pulls out of Japan
One of the longest operating cryptocurrency exchanges, Kraken, which usually is ranked as the 10th-13th largest exchange by volume, announced that it will be closing down its Japan operations. Kraken cited rising costs and a desire to focus on other geographical regions as reasons for the decision. The BTC/JPY pair represented less than 0.1% of the exchange's total volume and even less of the global BTC/JPY trading pair, which accounts for over 50% of BTC trading by currency. This illustrates further consolidation of the Japanese market and highlights the difficulties in operating a successful exchange in Japan.
ICOs to have record-setting funding
In our Q2 outlook we highlight the fact that numerous ICOs have closed since last year, however ICOs year-to-date have raised $3.5 billion. If we include Telegram’s and the EOS ICOs the amount of funding jumps to $6.8bn. This year’s funding has already matched last year’s numbers. However, Autonomous NEXT postulates that the funding in 2018 is different from last year’s funding as investors are not seeking to diversify their gains from a bull market, but are investing under the fear of missing out on the next best thing.
Blockchain hires Wall Street executive
Wallet and blockchain information provider Blockchain, with over 24 million wallets, announced its recent hire of Breanne Madigan as head of institutional sales and strategy. Breanne was formerly head of institutional wealth services at goldman sachs. She will help one of cryptocurrency’s longest standing firms in scaling its institutional offerings. This is similar to the move by Coinbase to extend its offerings for institutional clients. These hires and expansions by the market’s largest firms represent the continued institutionalisation of cryptocurrencies on the global financial landscape.
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.