Another week in the Cryptosphere is here and we’re back for our regular weekly crypto market outlook. In this article, we’ll be taking a quick look at what happened last week before peeking at the week ahead. From key market events to price analysis, fun news and crypto facts; it’s all here.
Market Highlight — Bakkt Trading Volume Explodes
As we’ve reported previously, the arrival of Bitcoin futures and the Bakkt trading platform was widely expected by traders, investors and analysts alike, to be one of the most important events in the Cryptoverse calendar this year.
However, the launch of the platform was about as inauspicious as you could imagine. After a brief burst of excitement, the price of Bitcoin slumped after trade volumes weren’t as high as had been hoped and uncertainty gripped the market.
But last week, after a super-slow start, Bitcoin futures contracts have finally started to be traded on the Bakkt platform and volumes appear to be picking up. There was even an astonishing daily increase of almost 800% on Wednesday, as the platform reached a new trading record of 212 contracts traded (worth $1.93 million).
This bump managed to move the price of BTC, with the coin jumping from $8,196.88 on Wednesday afternoon to $8623.77, a rise of around $427 in just a couple of hours. (We’ll bring you more BTC price analysis a little later).
Last week wasn’t all dancing in the street, however, with the number of Bitcoin futures contracts traded on the platform falling back sharply on Thursday. Yet, this event certainly shows the potential of Bakkt to drive some hype and speculation in the market. When volumes there move, it may well be a sign that institutional investment is on its way, as stated by Tom Lee, head of research at Bitcoin and crypto data company, Fundstrat. "(Bakkt) is nearly a pure proxy for institutional demand for Bitcoin." If and when volumes rise sharply, it could well be moon time.
At the beginning of last week (07.10), the total crypto market capitalisation stood at $214.81 billion. The market closed the week with a total market capitalisation of $226.73 billion, signifying a healthy increase of $11.92 billion (5.55%) over the week.
Our Most Popular Instruments
Our most traded pairs from last week were BTC/USD, ETH/USD and EOS/USD. Let’s take a quick look at these instruments and see what affected them last week and what could be coming up.
More than two weeks have passed since Bitcoin’s price dipped from $9,600 to $8,300; BTC seems to have settled itself around the $8,000-$8,600 price level. After a sharp increase, it corrected lower below $8,500. This all came in the wake of impressive volumes from the Bakkt Bitcoin futures platform. Many BTC traders will be eagerly watching volumes here in the hope that institutional investment is just around the corner.
Support appears to be at the $8,300 mark, currently. The price needs to stay above this level to start anew and look to increase in the near term.
A fairly positive week for ETH has seen a sharp price rise, then subsequent drop and now a steady price increase once more. Volatility is the order of the day it seems.
At present, Ether price is hovering around the $180 support area. If we see a downside break below that area, there’s a chance of an extended decline towards the next support line at $175.
On the upside, should the price continue to rise, it’ll meet key resistance zones at $190 and, later, $200.
Like BTC, ETH and the wider market, last week was mildly positive for EOS, all things considered. A supercharged mid-week pushed EOS up to $3.26, where it failed to break the resistance point. It subsequently dropped by around 4% and is currently trading in a fairly tight range between $3.04 and $3.20.
The next objective is around the $3.30 resistance level, after which the price may push toward the $3.50 level.
On the downside, if EOS breaks below $3.00, we could be into bearish territory.
Crypto News — In Case You Missed It
- More problems for Facebook’s Libra. Visa, eBay, Stripe and Mastercard have all announced that they are dropping out of Facebook’s Libra Association and are, therefore, no longer taking part in its stablecoin project. This comes as another hefty blow for the Facebook-initiated project, just a week after payment gateway PayPal announced its exit.
- Australia’s Gold mint is backing crypto. Australia’s 120-year-old gold bullion mint is backing a new digital token designed to allow investors to trade gold in real-time. The Perth Mint Gold Token (PMGT), which launched on Friday, is backed 1:1 by GoldPass certificates issued by The Perth Mint.
Crypto — Did you know...
Once upon a time, it was possible to own an actual Bitcoin coin! Casascius tokens were coloured yellow and included the Bitcoin logo. You’ve probably come across these if you’ve ever Googled “Bitcoin” and seen pictures of physical coins. These items also served as a cold storage device for cryptocurrencies. Each coin had a private key to the digital equivalent on the inside. Unfortunately, the product didn’t catch on and sales were stopped in 2013.
See you soon,
The DSX team