Cryptocurrency analyst, Saxo Bank
Summary: This week the entire crypto market cap fell by 5.5%, bringing the market cap to just above USD 260 bn. Ethereum and Bitcoin fell by 9% and 3.5% respectively. The price is coming down after being rejected from the USD 11k level. On the tech side, long-time developer Peter Wuille announced a new smart contract language for Bitcoin. This new language should help increasing Bitcoin's functionality to the level of its closest rival, Ethereum.
The much-anticipated futures exchange Bakkt has just announced that it received all regulatory approvals needed to start offering its physically-settled bitcoin futures. The launch date is set for the 23rd of September. Upon launch, the market is expecting the exchange to drive up the direct demand for ‘physical’ bitcoins, possibly reducing available supply on the spot markets. Its rival CME offers cash-settled futures which do not require physical bitcoins to transact. Bakkt with its product could become the most liquid exchange catering to traders and investors who prefer more regulated venues for ‘physical’ bitcoin. Now the market is waiting for details of the contracts, such as the margin requirements and trade sizes.
Binance, one of the world’s leading crypto exchanges, announced a global initiative to create local stablecoins in all markets in which it operates. This initiative will compete with Facebook’s Libra ambition. Both firms are seeking to develop a next-generation payment infrastructure independent of any firm to help millions access essential financial services at a relatively low cost. It is doubtful any will succeed considering the regulatory environment. Facebook is already under anti-trust scrutiny for its digital asset plans.
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
A political switch in China towards less tough control of its people and companies may kick things back into gear.
Redmond Wong,
Market Strategist
While the economic situation in Europe may not be as bad as feared, there's still a plethora of things to fix.
Chris Dembik,
Head of Macroeconomic Research
As the world turns increasingly bipolar, equity markets face harsh times as they transition into the new reality.
Peter Garnry,
Head of Equity Strategy
New alliances and collaborations outside of China may lead to prosperous times in Asia.
Charu Chanana,
Market Strategist
For years, it was thought that the balanced portfolio was a thing of the past. But recent developments may have changed that.
Peter Siks,
Investment Coach
Following a dramatic and volatile 2022 with good returns, a lot of this year's commodity performance may be driven by Chinese politics.
Ole S. Hansen,
Head of Commodity Strategy
2023 could be a tough year for currencies but EUR and JPY may have some upside.
John J. Hardy,
Head of FX Strategy
The commodity-heavy Australian market may have a good start to 2023, as the Chinese focus on growth signals demand for Aussie resources.
Jessica Amir,
Market Strategist
From a near-perfect environment for speculative assets before 2022 to the opposite, crypto faces fundamental challenges.
Mads Eberhardt,
Cryptocurrency Analyst
