Crypto Update: The ups and downs of the market

Crypto Update: The ups and downs of the market

Cryptocurrencies 5 minutes to read
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  This week the entire crypto market cap fell by 3% to around $130 billion and Bitcoin and Ethereum fell by 3% and 5% respectively.


It was a roller-coaster few days for the cryptos and the market saw a steep sell-off early this week after reaching its highest price of 2019.

Ethereum hardfork

Within the next 48 hrs, the Ethereum network is set to undergo a hardfork to a new implementation of the protocol. The hardfork titled Constantinople is set to bring many interesting features to the blockchain for optimising smart contract execution, as well as reducing the amount of ether produced per block by 33% (3 to 2). Investors can expect volatility after the fork as the market waits to see the code perform on the live network before fully believing in its success. The reduction of the Ethereum inflation rate could lead to an appreciation of ETH against BTC in the near term if the market has not accurately priced that in.

Largest holders are adding to their position 

Large Bitcoin holders, known as whales, have managed to increase their Bitcoin holdings over the past two months. Whales are Bitcoin holders who have accounts with 10k to 1m bitcoins. At every price drop over the previous two months, addresses in this range have managed to accumulate more BTC. These Whales have increased their holdings by BTC 150k to 16% of outstanding supply.

The top five addresses are exchanges, but the majority of the top 100 addresses remain unknown. Also, over the past two months addresses containing BTC 0.1-100 have managed to increase their holdings while those in the middle (BTC 100-10k) have seen their holdings reduced as a percentage of total BTC outstanding. The takeaway is that the retail base in Bitcoin is still increasing. However, the largest addresses are continuing to grow larger and play an essential role in the price of BTC.

Electroneum phone 

We recently reported the rumours (which have been confirmed) that Samsung’s new flagship phone the Galaxy S10 will contain an embedded cryptocurrency wallet. Samsung’s model will be priced at the upper end of the market. However, Electroneum, a little-known cryptocurrency project, has launched a much cheaper alternative at USD 80 a phone. The smartphone has a built-in wallet and mines cryptocurrency for the user. These phones are the beginning of a trend of phones including built-in crypto wallets. This trend will only serve to increase access and drive adoption.

Note: There will not be a publication of Crypto Update next week.

    Quarterly Outlook

    01 /

    • 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

    • Equity Outlook: Will lower rates lift all boats in equities?

      Quarterly Outlook

      Equity Outlook: Will lower rates lift all boats in equities?

      Peter Garnry

      Chief Investment Strategist

      After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
    • FX Outlook: USD in limbo amid political and policy jitters

      Quarterly Outlook

      FX Outlook: USD in limbo amid political and policy jitters

      Charu Chanana

      Chief Investment Strategist

      As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
    • Macro Outlook: The US rate cut cycle has begun

      Quarterly Outlook

      Macro Outlook: The US rate cut cycle has begun

      Peter Garnry

      Chief Investment Strategist

      The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
    • Commodity Outlook: Gold and silver continue to shine bright

      Quarterly Outlook

      Commodity Outlook: Gold and silver continue to shine bright

      Ole Hansen

      Head of Commodity Strategy

    • FX: Risk-on currencies to surge against havens

      Quarterly Outlook

      FX: Risk-on currencies to surge against havens

      Charu Chanana

      Chief Investment Strategist

      Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
    • Equities: Are we blowing bubbles again

      Quarterly Outlook

      Equities: Are we blowing bubbles again

      Peter Garnry

      Chief Investment Strategist

      Explore key trends and opportunities in European equities and electrification theme as market dynami...
    • Macro: Sandcastle economics

      Quarterly Outlook

      Macro: Sandcastle economics

      Peter Garnry

      Chief Investment Strategist

      Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
    • Bonds: What to do until inflation stabilises

      Quarterly Outlook

      Bonds: What to do until inflation stabilises

      Althea Spinozzi

      Head of Fixed Income Strategy

      Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
    • Commodities: Energy and grains in focus as metals pause

      Quarterly Outlook

      Commodities: Energy and grains in focus as metals pause

      Ole Hansen

      Head of Commodity Strategy

      Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...


    Business Hills Park – Building 4,
    4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

    Contact Saxo

    Select region

    UAE
    UAE

    Trade responsibly
    All trading carries risk. Read more. 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

    Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

    The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

    The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.