Globalcoin arrives

Cryptocurrencies 5 minutes to read

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  This week the entire crypto market cap rose by 7.5%, bringing the market cap to $260 billion. Ethereum also rose by 7.5% to a market worth of $28bn, while Bitcoin surged 14%, bringing this cryptocoin to more than $9,000 apiece, a level not seen since May, 2018.


Project Libra

This week Facebook revealed what is arguably the most important thing in the crypto sector since the ICO mania. Libra is Facebook’s digital currency project which has now been left in the hands of a Swiss Foundation under a similar name. The Libra Association aims to launch a stable coin backed by a basket of fiat currencies and low-risk assets, to enable users to transfer value globally at little to no cost. The project will be governed by members of the Swiss foundation, which includes Facebook, Visa, Mastercard, Paypal, and Uber. This currency will have massive implications for digital commerce, remittances, and monetary policies of nations. Regulators from the US to the EU are calling on Facebook to answer questions about the project, regarding intentions and privacy concerns. The world will be watching these discussions closely as this represents the most substantial foray into financial services in recent history. We’ll be publishing a longer article albout Libra on home.saxo insights soon.

Report suggests Bitcoin as a global hedge 

Grayscale Investments recently released a report claiming that Bitcoin ought to be considered a strategic position in any portfolio with a long investment horizon. The report states that financial crises are becoming more commonplace. To support its conjecture that Bitcoin could serve as a possible hedge in a global liquidity crisis, Grayscale cites five global events ranging from Grexit to Brexit to the US/China trade war and Bitcoin’s performance during those crises. Despite Bitcoin being a relatively new investable instrument, the firm believes, with the reinforcement of some in the investment management industry, that Bitcoin can serve well in the construction of more efficient portfolios as adoption increases.
Brexit Drawdown - Source: Grayscale Investments
Large Equity Drawdowns over the last 60 years  - Source: Grayscale Investments
Bloomberg adding more crypto indices

Bloomberg and Reuters are adding a new cryptocurrency index to their platforms. This index ranks the top 100 coins based on over 200 factors to derive a ranking. This index incorporates sentiments expressed on social media and news coverage to calculate the performance of the top 100 coins. The index is rebalanced monthly and is designed to spot artificially inflated volumes.
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 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 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 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 is not intended for residents of the United States and Japan. Please click here to view our full disclaimer.

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