Weekly XDAT Newsletter: 17 June 2019–23 June 2019

Market Analysis

Bitcoin run-up continues with the price reaching new 2019 high at $11390 (price may vary slightly on different exchanges). The total market cap now stands around $320 billion (at the time of press) with Bitcoin dominance at 59%. Fundamentally, Bitcoin network looked strong with the transactions on rise. Further, computing power also known as hash power reached an all-time high this week. The ongoing rally in Bitcoin looks more institutional driven compared to the last bull run which was triggered by the retail interest in the space.

The recent price rally is being attributed to Facebook’s launch of Libra token in parts. However, the price during the announcement remained unaffected, rising only a couple of days later after the United States and European authorities shared the sceptic outlook on Facebook’s crypto initiative. Additionally, the price surge correlated with the United States Federal Reserve keeping Dovish stance which also saw an inflow of funds in equity. Moreover, the institutional interest in Bitcoin started building since the starting of 2019 with Grayscale Investment showing the premium in price towards the end of May. Bitcoin futures on CME also recorded a new high in terms of the number of contracts open at 5311 totalling to $256 million earlier this week.

Another widely used indicator to gauge the FOMO alert for Bitcoin — Google Trends suggests that Bitcoin searches are still 88% down from the 2017 peak. Although the search trend has been on the rise since 2019 but still a far cry from the 2017 bull run. Unlike last bull run where the price surged to an all-time high under 20 days after crossing $10k, the rise in price has been gradual and spread over six months signalling retail investors remaining on the sidelines. On the technical front, price hurdle is seen around $11500 levels in the near term with 14 period RSI also suggesting minor pullback in the price. We are expecting the trading range of Bitcoin to broaden now with support standing around $9600 levels.

Weekly Growth Blockchain Wallet Users

Weekly Gainers & Losers

Major Developments this Week

-> Bitcoin — Data from Coinmetrics showed that Bitcoin daily active address has surpassed 1 million. The report has however drawn mixed reactions from the community with some attributing the rise to mixer service while others suggesting that merchant adoption is on the decline. In yet another interesting development, Forbes reported that the recent surge in the price is driven by Indian Crypto market with Bitcoin trading at $500 premium on the local exchanges.

-> Ethereum — Two Ethereum Improvement Protocol — EIP 2024 and EIP 1702 have been officially approved to be included in the Istanbul upgrade. While EIP 2024 is aimed towards increasing the verification and authentication of Blockchain data, EIP 1702 is focussed on enhancing smart contract upgradability. In another notable development, gaming giant Ubisoft announced their effort to develop blockchain gaming through Ethereum.

-> Ripple — Ripple has acquired $50 million worth of stake in MoneyGram in a bid to expand the use-case of XRP.

-> Litecoin — Litecoin has entered into a partnership with Bibox Exchange and Blockchain firm Ternio to announce physical cryptocurrency debit card.

-> Ethereum Classic — Ethereum Classic developers have announced hard fork — Atlantis to be done at 8,772,000 on September 17th 2019.

-> Bitcoin Cash — Bitcoin Cash development fund has received a massive contribution from the community with funds totaling to $760 BCH, roughly $326,800.

-> EOS — There is no major development in the token this week.

-> TUSD — According to data from TokenAnalyst, there are currently there are 20,685 HODLers of TUSD.

Wider Market Update: Weekly News Analysis

-> Bank of Canada said in an official announcement that they will review Facebook’s Libra project very closely.

-> The Kaspersky Cryptocurrency report concluded that 19% of the people have bought cryptocurrency globally.

-> Brazil has now outperformed United States, Japan and China to become the world’s largest user of crypto

-> Russian news service Interfax stated that Deputy Minister of Finance Alexei Moiseyev has hinted at allowing Cryptocurrency trading. However, accepting Crypto as a mode of payment is unlikely.

-> Zcash developer, Electronic Coin Company would supposedly upgrade its protocol to make the token easier for using in private transaction.

-> One of the world’s largest security depositories, Euroclear announced Blockchain pilot program for issuance and settlement of European commercial paper.

-> Ethereum co-founder Joseph Lubin attacked Facebook Libra token calling it ‘a centralized wolf in a decentralised sheep’s clothing’.

-> Galaxy Digital is looking to launch Crypto options contract in response to increased enquiries from crypto and non-crypto funds regarding hedging their positions.

-> As per research, USDT remains the top choice of the institutional investors despite the ongoing controversy.

Weekly Dapp Statistics

Fiat to Crypto Trade

Disclaimer

Every effort is made to provide accurate information in this newsletter. However, XDAT cannot guarantee that there will be no errors. XDAT makes no claims, promises or guarantees about the accuracy, completeness or adequacy of contents herein and liabilities for errors and omissions. Information provided in this correspondence is intended solely for information purposes and is obtained from sources believed to be reliable. XDAT is not responsible for any losses incurred as a result of using any information contained here. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Any third party opinions, links, news, research, analysis, prices, or other information contained in this newsletter are provided as such as general market commentary and do not constitute investment advice.

None of the content published in this newsletter constitutes a recommendation that any particular cryptocurrency, portfolio of cryptocurrencies, transaction or investment strategy is suitable for any specific person. The services and content that we provide are solely for informational purposes. The generic market recommendations provided by XDAT are based solely on the judgment of its personnel and should be considered as such. You acknowledge that you shall enter into any transactions relying on your own judgment. Any market recommendations provided by us are generic only and may or may not be consistent with the market positions or intentions of our company and/or our affiliates.

Exciting updates coming your way, stay tuned!