Weekly crypto update

Weekly Crypto Update: Companies, countries gain exposure

Jacob Pouncey

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.

XBTUSD
Disclaimer

Saxo Capital Markets (Australia) Pty Ltd 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.

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)

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) Pty Ltd 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 and Product Disclosure Statement 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. Trading in leveraged products such as CFDs and Margin FX products may result in your losses surpassing your initial deposits. 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.

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.