background image background image background image

Crypto Update: Turning the corner?

Cryptocurrencies 5 minutes to read
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  Confidence is creeping back to crypto as evidenced by a sharp uptick in market cap, a lull in volatility and promises of new mining tech releases.


This week the entire crypto market cap rose by 9% to around $220 billion. Similarly, Ethereum rose 11% after hovering around the $200 level at the start of November. Bitcoin rose only 3%, continuing its trend as the new “relatively” stable coin with record low volatility. So far, this month has been positive for Bitcoin. Although global crypto market volumes are near yearly lows, the volume over the last 24 hours (to 15:00 GMT, Nov. 7) was 50 % more than a month ago.

Shorts are decreasing

The period of low volatility for Bitcoin has brought Bitcoin shorts on Bitfinex, one of the largest crypto exchanges, to a local low not seen since the beginning of August. Additionally, longs are starting to make a comeback after bottoming in the third week of October. The longs now outnumber the shorts at a spread not seen since August. This could reflect the changing sentiment of the market as it anticipates the launch of the Bakkt Futures as a possible catalyst for the market, which has been range trading for quite some time.

Tokens beginning decoupling from ETH

Santiment, a crypto data provider, explains that the recent decoupling of prominent tokens from the price of Ethereum could be the start of a new positive run for the market. They also cite the increase on chain activity from individual projects such as 0x, Maker Dao, and Basic Attention Token, as reasons why the market may be making a turn for the better. However, the crypto insights provider cites a peak in social sentiment data as reason for a local top in the market, meaning that the promised bull run may still be farther into the future than anticipated. 

Bitmain is launching new mining machines

Bitmain is slated to release its new 7nm (nanometer) bitcoin miners on November 8. These miners come after its previous attempts at releasing smaller and more efficient miners were deemed failures. When these new products start shipping, those interested in the company's announced IPO will be watching to see if Bitmain can still design quality chips. Additionally, if these miners turn out to be hot sellers this could help boost confidence in the IPO.
Bitcoin chart

Disclaimer

The Saxo 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 is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, 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 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 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 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 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 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-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.