Crypto Update: Withdrawals, updates, additions

Crypto Update: Withdrawals, updates, additions

Cryptocurrencies 4 minutes to read
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank Group

Summary:  The crypto slump is being felt across the board as the CBoE prepares to stop listing Bitcoin futures.


This week saw the entire crypto market cap rise by 5% to around $140 billion. Bitcoin and Ethereum both increased by 4%, while Bitcoin trading is down for the first two months compared to the same period last year but up compared to the same period in 2017. Exchanges are feeling the pressure from the market downturn and the recent period of low volatility. 

Cboe to delist BTC futures

The Chicago Board and Options Exchange announced that it would not list Bitcoin futures in March. The firm highlighted the need to review its approach to offering cryptocurrency derivatives. However, investors can still trade futures up to June 2019 on the exchange. The delisting could be due to the lack of volume, considering that rival CME is trading at multiples to Cboe volumes. CME is clearly the winner for regulated exchange trading volume. However, BitMEX is the leading futures exchange for crypto futures, and a similar futures exchange Crypto Facitilities has experienced a 5x increase in volume after being acquired by the crypto exchange Kraken. 

Tether updates policy 

Tether, the company behind USDT, recently updated its reserve policy, stating that the stable coin is not backed 1:1 with USD but instead backed with “traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans.” This change highlights the fact that USDT is not backed exactly 1:1 with US dollars. However, USDT still trades at parity despite the potential credit risk from the loans made by Tether to third parties. The market barely moved on the news. In the past the market often faced increased volatility around Tether speculation. 

Facebook coin

Sources close to Facebook’s blockchain division stated that the firm was close to launching its own coin within the coming months. The sources stated that the coin would be used to transfer value between users and will be backed by a basket of fiat currencies. Additionally, it is rumoured that Facebook has been shopping the coin around to exchanges to be listed. Barclays analysts estimated the initiative could generate anywhere between $3-19 billion for Facebook. Facebook could wind up launching the most widely used cryptocurrency, and this will prove bullish for Bitcoin and cryptocurrencies as FBcoin will increase awareness and access to the ecosystem. The addition of a Facebook coin will almost certainly increase regulatory scrutiny for the social media giant.
XBTUSD

Quarterly Outlook

01 /

  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

None of the information provided on this website constitutes an offer, solicitation, or endorsement to buy or sell any financial instrument, nor is it financial, investment, or trading advice. Saxo Capital Markets UK Ltd. (Saxo) and the Saxo Bank Group provides execution-only services, with all trades and investments based on self-directed decisions. Analysis, research, and educational content is for informational purposes only and should not be considered advice nor a recommendation. Access and use of this website is subject to: (i) the Terms of Use; (ii) the full Disclaimer; (iii) the Risk Warning; and (iv) any other notice or terms applying to Saxo’s news and research.

Saxo’s content may reflect the personal views of the author, which are subject to change without notice. Mentions of specific financial products are for illustrative purposes only and may serve to clarify financial literacy topics. Content classified as investment research is marketing material and does not meet legal requirements for independent research.

Before making any investment decisions, you should assess your own financial situation, needs, and objectives, and consider seeking independent professional advice. Saxo does not guarantee the accuracy or completeness of any information provided and assumes no liability for any errors, omissions, losses, or damages resulting from the use of this information.

Please refer to our full disclaimer for more details.

Saxo
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992