Weekly crypto update Weekly crypto update Weekly crypto update

Crypto Update: Delays and declines in ETH

Cryptocurrencies 4 minutes to read
Picture of Jacob Pouncy
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  This week the entire crypto market cap fell by 2% to around $120 billion. Additionally, Bitcoin and Ethereum fell around 2% and 6% respectively. Bitcoin is consolidating between $3.5k and $3.8k

Ethereum update

Last week, we reported that the Ethereum hardfork had been delayed with no new date set. During the developers call last Friday the leading developers decided to reschedule the hardfork for 27 February 2019. This hardfork would reduce the amount of ether per block from 3 to 2, which would reduce the number of newly minted ether created, lowering the interest rate. Despite the delay and the price decline, the Ethereum network has continued to process a record number of transactions. The institutional research firm Diar reported that in December Ethereum processed over 115 million ether on-chain. This highlights that even though price is down over 90% from the peak, transaction volume has been increasing over the past three months.

Markets bolstered by new supply

Over $15 billion in new cryptocurrency supply has been added to the crypto market cap over the course of 2018, which is roughly 12% of the total market cap. Almost a third of the increase in value is attributed to completely new projects that have entered the market. However, market cap is not necessary a proxy for the health of the blockchain ecosystem. 
Source: Saxo Bank
Bithumb to go public in US

One of the world's largest exchanges by volume is planning to go public in the US via a reverse takeover. The newly named Blockchain Exchange Alliance plans to bring the Bithumb exchange public by acquiring the holding company, Blockchain Industries, which trades on the public US over-the-counter markets. This would allow the Blockchain Exchange Alliance to list publicly in the US without the hassle of an IPO. The firm plans to acquire more exchanges under the new ticker. However, Bithumb has been accused of faking its volume. A recent report highlights that the exchange has the second highest volume but ranks ninth in order book depth.
Bitcoin chart


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.