Weekly Crypto Update: Companies, countries gain exposure
Cryptocurrency analyst, Saxo Bank
The entire cryptocurrency market cap is down 5% for the week and 10% from its weekly high. Bitcoin performed similarly from its weekly high, but is down less than 1% for the week. Ethereum is down 10% for the week. This is on the back of dwindling retail interest in the crypto market as indicated by Google trends, as well as a lack of price action generating news.
Bitcoin transactions fall
Bitcoin transactions have fallen to a two-year low. This could indicate a cooling-off of the market since the December high. Additionally, the fall could be explained by exchanges choosing to bundle transactions on the blockchain instead of sending them individually, thereby reducing transaction costs.
Companies continue to test blockchain
BMW announced two partnerships – with VEchain and Circulor – intended to employ the power of distributed ledgers to track its supply chain. SBI Holdings continues to expand in crypto with the 40% purchase of a hardware wallet company. GMO Internet Inc. has mined $3 million in crypto in the last three months. Other publicly traded companies continue to gain exposure to the crypto and blockchain industry.
Countries continue to look at crypto
Putin backs blockchain development in Russia; Venezuelan lawmakers declare Maduro’s issue of the Petro – an oil-backed crypto – illegal, while the public has mixed reactions.
The Brazilian National Bank for Economic and Social Development, or BNDES, is tokenising the Brazilian real on Ethereum’s blockchain on a 1:1 basis.
A top Chinese political advisor suggests a national-level crypto exchange in China. China banned all domestic exchanges and ICOs as of last year. The creation of a regulated exchange in China could result in higher volumes for the crypto market.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.