Cryptocurrencies 5 minutes to read

Crypto Update: Turning the corner?

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  Confidence is creeping back to crypto as evidenced by a sharp uptick in market cap, a lull in volatility and promises of new mining tech releases.


This week the entire crypto market cap rose by 9% to around $220 billion. Similarly, Ethereum rose 11% after hovering around the $200 level at the start of November. Bitcoin rose only 3%, continuing its trend as the new “relatively” stable coin with record low volatility. So far, this month has been positive for Bitcoin. Although global crypto market volumes are near yearly lows, the volume over the last 24 hours (to 15:00 GMT, Nov. 7) was 50 % more than a month ago.

Shorts are decreasing

The period of low volatility for Bitcoin has brought Bitcoin shorts on Bitfinex, one of the largest crypto exchanges, to a local low not seen since the beginning of August. Additionally, longs are starting to make a comeback after bottoming in the third week of October. The longs now outnumber the shorts at a spread not seen since August. This could reflect the changing sentiment of the market as it anticipates the launch of the Bakkt Futures as a possible catalyst for the market, which has been range trading for quite some time.

Tokens beginning decoupling from ETH

Santiment, a crypto data provider, explains that the recent decoupling of prominent tokens from the price of Ethereum could be the start of a new positive run for the market. They also cite the increase on chain activity from individual projects such as 0x, Maker Dao, and Basic Attention Token, as reasons why the market may be making a turn for the better. However, the crypto insights provider cites a peak in social sentiment data as reason for a local top in the market, meaning that the promised bull run may still be farther into the future than anticipated. 

Bitmain is launching new mining machines

Bitmain is slated to release its new 7nm (nanometer) bitcoin miners on November 8. These miners come after its previous attempts at releasing smaller and more efficient miners were deemed failures. When these new products start shipping, those interested in the company's announced IPO will be watching to see if Bitmain can still design quality chips. Additionally, if these miners turn out to be hot sellers this could help boost confidence in the IPO.
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 Combined 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)

Saxo Capital Markets (Australia) Pty Ltd.
Level 25, 2 Park Street
NSW 2000
Sydney
Australia

Australia

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 & Combined Financial Services Guide & 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.