Crypto Update: Deriving Implications
Cryptocurrency analyst, Saxo Bank
Summary: This week the entire crypto market cap rose by 9.5%, bringing the market cap to USD 355 bn. Ethereum and Bitcoin rose by 4.5% and 15% respectively. This rise resumes the advance of the market which started in April this year.
- FCA suggests a ban on crypto-derivatives
UK’s financial watchdog proposed a ban on crypto derivatives to retail investors. The regulator cited a lack of knowledge and the general financial loss for retail clients dealing in crypto-derivatives over the observed period. However, trading and marketing of the actual digital assets themselves would still be permitted under the ban. The proposal can be found here. The FCA is looking for comments during the feedback period lasting until October this year.
- Singapore suggest VAT-free transactions
The Inland Revenue Authority of Singapore (IRAS) proposed draft regulation to exempt cryptocurrency transactions from the local value-added tax. This type of legislation will help to grease the wheels of the local crypto-economy, making certain activities more profitable, and give clarity to firms operating in Singapore. This is a peek at the future of the crypto economy where regulators begin to adopt clear and favorable legislation to capture a share of the growing crypto-economy.
- Kraken CEO in favour of Tether
Jesse Powell, CEO of the crypto-exchange Kraken, spoke to the legitimacy of Tether the controversial stable coin. Tether has long been speculated to print tethers (USDT) into existence with little oversight and no collateral backing. However, Powell goes on to state that the increase in Tether is an accurate albeit small snapshot of the total fiat currency flow to exchanges. He states that changes in tether supply will likely correlate with the actual banking flows to and from exchanges. His statements give another narrative to the controversial stable coin project.
- Telegram’s token to sell at triple value
One of the largest ICOs, which has yet to show a production-ready product using it native token GRAM, will have some of its ICO tokens listed by a third party for sale at triple the previous ICO round’s price. If it sells out, it shows that investors are more than happy to purchase tokens that have minimal use case in the real world all in the pursuit of yield. Downstream investors are buying at a price that is difficult to justify, while early investors cash out at a healthy multiple. This is eerily similar to a spate of tech unicorn IPOs this year which have been hard on those who invested at the IPO, yet kind to the early investors in companies with little or no profit.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.