Weekly Crypto Update Weekly Crypto Update Weekly Crypto Update

Crypto Update: Crimson tide

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

This week the entire crypto market cap fell 12% to just over $200 billion. Bitcoin fell by 3%, continuing to prove use as a store of value over other cryptocurrencies during market downturns. On the other hand, Ethereum lost 24% this week. Ethereum is below levels not seen since November; volumes, however, are significantly higher now.

The future is still shaky for Ethereum as Bitcoin may still be looking for a new low. If Bitcoin does decide to trade towards new lows, Ethereum will likely follow.

Ethereum getting diced

The market is offering several narratives as to why Ethereum is falling so hard in August. First, retail investors who bought Ethereum during the ICO hype in the second half of last year, when the price of ether bounced around the $300 level, are just now holding at a loss. Second, many believe that ICOs are starting to liquidate their Ethereum holdings en masse. Third, BitMex CEO Arthur Hayes believes that the crypto hedge funds and venture capital funds that invested in Ethereum during the last year are looking to unload their mark to market losses to prevent further erosion of their balance sheets and their jobs. Ethereum along with other ICO projects face pressure from multiple fronts additionally to the systemic risk in the larger cryptocurrency market led by Bitcoin.

GMO Inc. announces huge gain in crypto business

The Japanese internet conglomerate GMO Inc. released its second-quarter results stating that the company’s crypto business saw a profit of JPY 250 million on revenue of JPY 2.65bn. The company’s exchange accounted for almost half of the revenue (JPY 1.42bn). The exchange saw a 7.3x increase in revenue over the previous quarter. Although the company’s mining business saw a 90% increase in revenue and operations are “increasing as expected,” the company realised a loss on its mining operations.

Overstock is now a crypto company

Overstock, the discount online retailer famous for liquidating the merchandise of failed dotcom era start-ups, released its earnings report recently, revealing that the company’s subsidiary tZero – a blockchain-based securities platform – is now worth more than the parent company. The company received a nice boost after its earnings announcement but is now trading close to its yearly low. Analysts predict a bright future for Overstock and tZero. However, their value will depend on adoption of the tZero platform.


Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, 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. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such 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.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

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

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.