Cryptocurrency analyst, Saxo Bank Group
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.