The market is never dull, is it? Now, as we kick-off another week in this exciting market, we’re going to start where we usually do, with the weekly crypto market report. This report is designed to bring you the latest from the Cryptosphere all wrapped up neatly in bitesize pieces to help you make more informed trading decisions this week. Let’s go!
Market Highlight — Are We Seeing Early Signs of Mass Adoption?
Crypto is now a decade old and has, since its inception, jostled for position as a staple, everyday resource, used to buy and sell real-world commodities and goods. That was never going to be easy, as has been proven over the years.
Yet, now in 2019, we may finally be starting to see green shoots of mass-adoption, as possibilities to purchase real-world goods with crypto are becoming more numerous. Indeed, if you follow the headlines, real-world crypto adoption is booming. Earlier this month, Crypto.com released their Pay Checkout plugin to WooCommerce website merchants, which it claims is used by a gigantic 30 per cent of the world’s online stores.
Add to this, 30 of the biggest retailers in France, such as the globally renowned Sephora, Decathlon and Foot Locker are planning to accept Bitcoin from next year onwards. This will open the possibility for French citizens to buy anything from trainers to perfume with crypto, adding around 25,000 crypto enabled point-of-sale locations. In the Philippines, it’s now possible to buy bitcoin from 7-Eleven convenience stores. Even IKEA are accepting blockchain based payments, with an Icelandic firm recently settling a payment using the Ethereum blockchain.
So, hallelujah — the crypto revolution is here! Well, let’s not get too far ahead of ourselves. These stories are encouraging but there’s still a long way to go. And, we shouldn’t forget that the key element of mass-adoption is that consumers feel comfortable starting to use the commodity. While the chances are greatly increased with the ability to pay for everyday goods with crypto, mass-market confidence to do so has not changed... yet.
At the beginning of last week (14.10), the total crypto market capitalisation stood at $226.73 billion. The market closed the week with a total market capitalisation of around $220.92 billion, signifying a slight decrease by $5.81 billion (2.56%) over the week.
Our Most Popular Instruments — Analysis
Our most traded pairs from last week were BTC/USD, LTC/USD and ETH/USD. Let’s take a quick look at these instruments and see what affected them last week and what could be coming up.
Bitcoin had a tumultuous week which has seen it drop from a high of $8,469.06 to a low of $7,913.69. It’s first major hurdle this week will be to break through that $8,000 resistance and look to set up a fresh support there as a plateau to build upon.
On the downside, there’s a support at around $7,700 and investors will be wary of any drops to around this area. A plunge below this support could dent investor sentiment. Slow and steady should be BTC’s aim over the coming week.
Bitcoin Cash has pretty much followed his bigger brother in terms of price action over the past week, seeing it’s price drop from $228.90 down to $211.63. At the time of writing, it currently sits just about this mark around $213.
BCH has similar hurdles to BCH, albeit on a smaller scale. The primary objective will be to keep as far away from its critical support that sits around $203. If the bears are really in control, a break below this level would engage the next support line at $168.
On the positive side, should Bitcoin Cash avoid the 203 support and consolidate this week, its next target is around $236, which, if hit, will be a strong signal that buyers are back in action.
Ether hit $187.18 earlier in the week, last week, before gradually dropping down to around $171.
ETH needs to try to stay above the corridor of uncertainty that sits between $161 and $151. Back in September, buyers were keen to ‘buy the dip’ in this range. If this does happen but the buyers don’t turn up, Ether could drop as low as $122.
If ETH should rebound to $196, however, we could see a breakout up to around $236.
Crypto News — In Case You Missed It
- JPMorgan Chase CEO pours cold water on Facebook’s Libra. Jamie Dimon, the US investment bank’s top-bod has said that Facebook’s yet-to-be-released Libra stablecoin is “a neat idea that will never happen.” Dimon was giving a speech at the Institute of International Finance conference on Friday, when he stated that the idea behind Libra is not unique. He later used this opportunity as a springboard to turn the discussion around to focus on his company’s own stablecoin, JPM Coin. He also explained that JPMorgan is investing over $11 billion on technological developments in 2019.
- Bermuda Premier: Cryptocurrency a great equaliser against big tech. Edward David Burt, has said that cryptocurrencies are “a great equaliser” and that fintech innovation is a national strategic imperative. In an interview for Forbes, the Premier — a former programmer and startup founder, expressed his belief that the increased presence of cryptocurrencies will ensure that citizens have more freedom and are less reliant on large corporations and governments.
Crypto — Did you know...
Ten years ago this weekend, 5,050 BTC were sold for $5.02 in the first market transaction for bitcoin. Today, they'd be worth over $42 million, which means that the world’s most notorious crypto coin has risen in value by an incredible 838 million per cent in just over ten years. It’s almost impossible to fathom that kind of growth and, even in the current relative slump, it has far eclipsed even the most confident of backers over the past decade.
See you soon,
The DSX team