Cryptocurrency analyst, Saxo Bank Group
This week the entire crypto market cap settled back at its opening price of $280 billion. It did not move more than $15bn on either side of the $280bn level. Bitcoin rose less than 1% since last week and Ethereum saw a positive week rising 6% against the USD. Many in the market believe we are in the process of bottoming out with a potential to go a bit lower before reversing the current trend.
Ethereum declared not in violation of security laws
Head of the division of corporation finance at the SEC, William Hinman said in a speech earlier this week that Ethereum is not a security in its current form due to its highly decentralised nature. This helped clear the regulatory fog around Ethereum, which boosted its price immediately after the speech. A representative of CBOE Global Markets stated that this statement removed a key hurdle in listing Ethereum futures, hinting that a futures product tracking the second-largest cryptocurrency could be listed sooner rather than later.
Sixth-largest exchange hacked
Bithumb, the sixth largest exchange by volume, was hacked for $31 million when making an IT upgrade of its systems. The second-largest South Korean exchange tweeted that it would reimburse users for the hack but has since deleted the tweet. A full reimbursement is plausible as the exchange is estimated to make $1.83m in daily revenue. After the hack, the market dropped by $10bn in half an hour.
Global adoption continues
Global adoption and regulation continue to take strides forward. Two of Russia’s largest banks, Sberbank and Alfa Bank are piloting cryptocurrency products for retail investors. This highlights Russia’s increasing desire to enter the cryptocurrency sector. In Japan, the Japan Virtual Currency Exchange Association proposed a new set of policies for exchanges. The vote for the proposal will take place on 27 June and include policies like circuit breakers to prevent individual exchange prices from diverging from the wider market. The outcome of the vote could move the markets as the JPY is more than 60% of fiat trading volume.
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)