Crypto is the market that never sleeps. While that’s awesome, there’s a whole lot of information out there to sift through and understand. That’s why we’ve created this easy-to-read report featuring the latest price-action, news, views and potential market-moving events for the week ahead. Let’s jump in!
Market Highlight — China Catches Blockchain Fever
China has caught blockchain fever after President, Xi Jinping urged the industry to accelerate the development of blockchain technology. The Chinese premiere stated in a speech late last month, that blockchain is “a key breakthrough that can facilitate China’s progress in core technologies.” In the wake of these highly positive words, just the next day, the price of Bitcoin catapulted by 24 per cent; stocks in blockchain-companies soared; and the China Communications Industry Association suggested that October 24 be celebrated as “Blockchain Day”, from now onward.
China's government has been long thought of as crypto-hostile. It’s not really been in the business of endorsing crypto which is why positive blockchain sentiment came as a surprise. China’s government-controlled economic planning agency recommended not to phase out the industry, despite putting it on a list of industries that were not to be encouraged six months ago, a move which led to the widespread belief that it would inevitably be banned.
The latest report from the International Data Corporation has now, unsurprisingly shown, that the blockchain industry in China is booming. Although the country is well behind the likes of Europe and the US, the report stated that Chinese businesses would look to spend $2 billion on blockchain by 2023, and that they'd already spent $319 million this year. In contrast, European businesses have spent $674 million, and, across the pond, US companies have spent just over $1 billion.
At the beginning of last week (04.11), the total crypto market capitalisation stood at $246.39 billion. The market closed the week with a total market capitalisation of around $239.89 billion, signifying a slight decrease by $6.61 billion (2.68%) over the week.
Our Most Popular Instruments — Analysis
Our most traded pairs over the last week have been: BTC/USD, ETH/USD and BCH/USD. Now we’ll take a quick look at these instruments finding out what affected them last week and what’s on the horizon this week.
Last week was not a fab week for Bitcoin bulls. After consolidating above $9,000, Bitcoin declined heavily against the US Dollar, dropping below that crucial support line.
Good news popped up on Sunday, however, as the BTC bears went into hibernation and Bitcoin regained some of that lost ground. The price surged 5% in just a few minutes to launch the world’s most popular crypto coin back past that psychological barrier of $9,000.
BTC needs to stay on the upside of this level and look to consolidate over the next week.
ETH price climbed as high as $190 on Sunday, which put it roughly at the point it was this time last week. Back on track, then. Well, not if the bulls run out of steam and the price slips below the support at $173. If that happens, we could see a drop to the next support at $161.
On the upside, if ETH stays above the $190 level, it should aim to consolidate further and push that $200 resistance.
A tough week last week saw BCH languishing around the $276 mark. Thanks to a nice reversal over the weekend and some positive gains, Bitcoin Cash galloped its way to $295 in the early hours of yesterday morning.
Should the momentum continue about $300, the next target for BCH traders will be around $360. The bulls will be marching hard to get to that point. Keep an eye on any downward movement. The market is pretty shaky at present and you’ll need to be on your guard for any sudden changes.
Crypto News — In Case You Missed It
- Bakkt’s Bitcoin Volumes Boom to $15 Million. Bakkt Volume Bot, a Twitter account designed to publish data about the Bakkt exchange’s derivatives market, reported there had been 1,741 BTC worth of contracts traded on Friday. This is equivalent to around $15.5 million, and is, by far, Bakkt’s largest trading day to date. This statistic was later corroborated by the exchange itself.
- Libertarian Ron Paul Reveals Public Prefers Bitcoin Over Gold. Former Texan Congressman Ron Paul — one of the most outspoken libertarian politicians — recently conducted a poll that found that 59% of some 77,350 respondents would prefer HODLing $10,000 worth of Bitcoin over $10,000 worth of gold, Federal Reserve Notes, or 10-year Treasury bonds. Wow.
Crypto — Did you know...
To date, Bitcoin’s highest ever price, AKA it’s “All time high”, is $20,089 per coin, which was recorded on 17 December 2017. At the time of writing, Bitcoin is some $13,201 (66%) lower than the cryptocurrency’s all-time high. At DSX, it’s possible to trade/exchange Bitcoin for 13 other instruments, including EUR, USD, GBP and RUB.
See you soon,
The DSX team