Cryptocurrencies 4 minutes to read

Crypto Update: Rising in the East

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  Cryptocurrency prices remain soft with the overall market capitalisation in decline, but developments in Iran and at South Korea's Samsung could potentially boost activity.


This week, the entire crypto market capitalisation fell by 5% to around $115 billion. Bitcoin and Ethereum fell around 4% and 9% respectively, and Bitcoin volumes have been on the decline since the sharp drop from $6,000 in November.

Central bank digital currency

Iran is considering issuing its own central bank digital currency in an effort to skirt US sanctions. The Crypto-Rial would initially be used by Iranian banks and institutions in the hope that the Iranian public could transact with it. This would be one of the first instances of a country issuing crypto that is backed 1:1 by the sovereign currency, unlike the Venezuelan Petro which supposedly is backed by oil.

Reportedly, Iran is already negotiating the use of cryptocurrency in its financial transactions with eight countries. It would be easier for Iran to adopt the existing infrastructure of a public blockchain such as Bitcoin or Ethereum than its own private software, as public networks are more difficult to censor than private ones. 

Samsung’s new phone 

Samsung’s new Galaxy S10 flagship phone is rumoured to support cryptocurrency. If Samsung Pay can support the use of the major cryptocurrencies, the market could see an increase in activity as Samsung pay has over 10 million active users in South Korea. If the crypto wallet support is not limited to only the S10, then the announcement could impact a lot more users of Samsung Pay. A Galaxy phone with cryptocurrency support would be the first major flagship phone to use this feature.

Fidelity to launch crypto custody in Q1

Fidelity, which manages $7.2 trillion in assets, is aiming for a March launch date for its cryptocurrency custody service. Currently, the firm is piloting the service with some of its clients as it builds out its solutions. The launch of the service will allow firms who have been waiting for a trusted name to offer a custody solution to gain crypto exposure. The retail market is hoping that there will be significant interest in the product offering to help lift prices. When the service was first announced in October, Bitcoin saw a 10% or more increase across exchanges. A similar bump could happen in the days leading to the official launch.
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.