Welcome to another week in crypto. We’re here to bring you the weekly crypto market report. This article is focused on bringing you the latest and most important information from all over the market. Our aim is to digest all of this information and then put it into one neatly-packaged, super useful read. Want to see if we managed to do it? You’ll find out in about 7 mins!
Market Highlight — China Passes First-Ever ‘Crypto Law’
Big news coming out of the Red Dragon this weekend. On Saturday, the Standing Committee of the 13th National People's Congress in China has passed a new law designed to regulate cryptography. The law will take effect on 1st January 2020, according to local news source, CCTV.
The new regulatory framework aims to set standards for the application of cryptography and the management of passwords. It also establishes the role of a central cryptographic agency, designed to lead public cryptographic work and helping to create guidelines and policies for the industry.
Why is China doing this? Good question! The answer is potentially because the country is building the foundations for the soon-to-be-announced and not-so-secret Chinese national cryptocurrency. Though, we still have no concrete word on when that’s coming and have heard senior Chinese sources stating that there’s no official timetable for its launch.
Meanwhile, over the past week, Facebook’s Mark Zuckerberg has warned that Chinese superiority in the digital currency space could put the US dollar at risk. Cynics would say that this is just a ploy to encourage adoption of his Libra stablecoin, but there might be some truth to it.
Regardless, the news that China, a country with over 1 billion citizens, is officially favouring Crypto, is very good for traders and investors alike.
At the beginning of last week (21.10), the total crypto market capitalisation stood at $220.92 billion. The market closed this week with a total market capitalisation of around $254.97 billion, signifying a heavy increase by $34.05 billion (15.41%) over the week.
Our Most Popular Instruments — Analysis
Our most traded pairs from last week were BTC/USD, ETH/USD and BCH/USD. Let’s take a quick look at these instruments and see what affected them last week and what could be coming up.
Last week was a rollercoaster week for Bitcoin (BTC), as it dipped below its critical support around $7,700 in mid-week. Many analysts attributed this to being a reaction to the setbacks in Facebook’s Libra project and the potential mass-adoption that could ensue, will be further delayed. The news of Google’s quantum computer may also have upset some.
Yet, even those dark clouds couldn’t burst BTC’s bubble. The leading cryptocurrency skyrocketed in mid-week. Bitcoin futures volume on Bakkt also picked up. This is a strong signal that institutional investors are looking to jump in if Bitcoin starts to push.
Most analysts predict a short period of consolidation for BTC. For the more aggressive trader, this could be seen as a good time to buy. If we see the bulls turning up, a rally to around $14,000 could be on the cards.
On the downside, if price turns down from current levels and breaks, it could end up as low as $7,300. But sentiment has been strong over the past week.
Ether saw a very good end to the week, blowing its support area around $155 well and truly out of the water. There was a sharp rally above the $165 and $172 resistance levels, which culminated in the start of an uptrend. ETH traded as high as $199, but, following a small correction, currently sits at a respectable $187.
ETH needs to consolidate around this level and steer clear of the $172 support area. If it starts to dip into this territory, we could see a break below, down to the $165-$160 level.
If Ether can maintain its current steady progress, it will soon start knocking on the door of $200.
BCH managed to shrug off those pesky bears to steer well clear of the $203 support area and currently sits at $265.52.
A fresh support has set up shop at $241. If BCH makes sustained progress north of this line, we could see a breakout up to the lofty heights of $360.
On the downside, if price slips toward $203, we’re likely into a downtrend and the bears will be in full control.
Crypto News — In Case You Missed It
- Largest US Food Coop to Pilot Blockchain Tech. The largest US retail food group purchasing organization, Topco Associates is to pilot Mastercard’s blockchain tech. According to a press release last week, Topco will test a traceability platform using Blockchain. This Wholechain platform is based on Mastercard’s blockchain-based Provenance Solution. Topco will use the platform to trace the where products like meat and seafood are sourced from.
- US Crypto Ownership Doubles in a Year. A recent study has found that the number of Americans that own cryptocurrencies has almost doubled this year, going from 7.95% in 2018 to 14.4% in 2019. The study found that around 36.5 million people in the US alone owned some form of digital currency. It also found that more than half of crypto holders held more than one crypto. 55.4% of BTC holders surveyed admitted to owning another form of crypto. Interestingly, the analysis also showed that 19% of male respondents claimed to hold a form of crypto versus 10% of their female counterparts.
Crypto — Did you know...
That around 64% of Bitcoin wallets are full of ghost coins? “What’s a ghost coin?”, you say. A ghost coin’s wallet is one that’s not been active since it was created. This means that a load of people bought Bitcoin in the early days and are either just being patient little investors and HODLing them, or perhaps they lost their private keys and can’t get access. Ouch.
See you soon!
The DSX Team