Weekly Crypto Update Weekly Crypto Update Weekly Crypto Update

Crypto Update: Rising in the East

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank Group

This week the entire crypto market cap rose 4% to over $340 billion. Ethereum outperformed the market rising 6.5% over the week. Meanwhile, Bitcoin traded 1% higher, with its market cap sitting at $130 billion, or 38% of the total crypto market cap.

Bitcoin trading volumes have remained flat while Ethereum’s have increased over the last three months. 

Trading volumes
Bitcoin and Ethereum Trading volumes YTD – source: diar.co

China warming up to cryptos again

President Xi Jinping of China recently stated that blockchain is part of a new revolution in technology. Additionally, China Central Television aired a segment where they stated that blockchain is ten times more valuable than the internet and informed the audience on blockchain technology and the risks associated. The Ministry of Industry and Technology, meanwhile, began releasing cryptocurrency ratings this month and plans to produce more, all while cryptocurrency trading has been banned in China since last year. It seems that the rhetoric coming from China has always been pro-blockchain, but now it is becoming more pro-cryptocurrency. China at one point dominated global trading volume; Beijing lifting its ban on trading by the end of 2019 is a highly underrated event as the market has become desensitised to news from China since the ban. 

Coinbase expanding to Japan

Coinbase announced that it will expand to the Japanese market. The company hired former Morgan Stanley Japan banker Nao Kitazawa as CEO of its new office. This is the latest move by companies looking to expand to the Japanese market (SBI also recently launched its exchange in the country). Additionally, GMO technologies and Yahoo Japan are looking to open exchanges in Japan. Japan is arguably the most crowded digital exchange market and it will be difficult for Coinbase to expand to Japanese retail investors due to its limited asset offerings compared to competitors. Perhaps a more institutional clientele will suit Coinbase better in the Japanese market.

Endowments are beginning to invest

US university endowments are starting to invest in cryptocurrencies through hedge funds. John Lore, the founder of Capital Fund Law Group, stated that some of his university clients are investing in cryptocurrencies for strategic reasons. This highlights the further maturation of universities’ relationship with blockchain tech and the beginning wave of institutional money flowing into the space, but do not expect pension funds to invest until there is more regulatory certainty and, most likely, a digital asset ETF.

XBTUSD
Bitcoin price in USD, Coinmarketcap.com

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.

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)

Saxo Markets
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 Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML 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 Markets 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