Crypto Update: Smoke and mirrors
Cryptocurrency analyst, Saxo Bank Group
Summary: This week the entire crypto market cap and Bitcoin rose by 1%, thereby bringing the market caps to around $142 billion and $472bn respectively.
Bitmain confirms it is not going public for now
The cryptocurrency mining giant confirmed this week that the firm will not IPO anytime soon. Bitmain allowed its IPO application with the Hong Kong Stock Exchange to expire. The firm stated that although it has not pursued an IPO at this time, the process has made the company more transparent. Bitmain, however, claims to have every intention to IPO at some point but has not disclosed the exact date of the new filing. The lapse in its application could indicate other cryptocurrency miners such as Ebang and Canaan may also decline to IPO for the time being.
Majority of BTC volume is fake
Bitwise recently reported in front of the SEC regarding the cryptocurrency exchange market. The firm stated that over 95% of published volumes on cryptocurrency exchanges are false. The firm looked at the top exchanges and compared volume spikes as well as order sizes to determine whether each exchange had legitimate volumes. The firms with legitimate volumes had volume spikes in the same time frame and clustered order sizes around small fractions below 1 BTC and clusters around whole numbers of BTC (e.g. 2, 3, 4…). Some speculate that this report could improve the chances of an ETF, citing that nine of the ten top exchanges with real volume are regulated under US law. The only exchange not regulated is Binance, which is the top exchange worldwide.
Pantera capital close to its third fund
The cryptocurrency hedge fund Pantera Capital is $15 million short of its third venture fund target of $175m. The firm has about an equal number of investments in infrastructure products and exchanges, 35% and 30% respectively. The firm has made notable investments in Bakkt, Brave and Circle. Despite the more than a year-long market downturn in cryptocurrency prices, firms are still raising money to invest in the space.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)