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Week in Review

Weekly Recap: Crypto New Year Begins Quietly as Apple Roils Traditional Markets

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Crypto markets opened 2019 on a soft note, as bitcoin and the major altcoins saw more stable trading ranges following weeks of volatility. Ethereum emerged as the week’s biggest gainer following a 16% surge in price, which allowed it to reclaim the second spot from XRP in the market-cap ranking.

In traditional markets, Apple’s admission that it may have a big China problem wreaked havoc on stock prices, with the Dow Jones Industrial Average plunging more than 600 points in a single day of trade. Stocks remain highly vulnerable to extreme swings, a trend that is expected to continue for the duration of the first quarter.

Cryptos Stabilize

The cryptocurrency market showed greater upside potential this week, as bitcoin clawed back above $4,000 on multiple occasions and Tron showed signs of a bullish breakout. However, on balance, the market is little changed compared with last week. Since peaking near $136 billion on Wednesday, the cryptocurrency market capitalization has drifted back below $130 billion.

Further reading: Projects Like Tron are “Just Garbage,” Says Jed McCaleb; TRX Price Ticks Higher on New Year’s Day.

Bitcoin is once again benefiting from positive sentiment tied to Intercontinental Exchange’s forthcoming BTC futures market. Unlike CBOE and CME, the Bakkt trading platform will offer physically settled bitcoin futures, a move that many in the blockchain community believe could boost institutional adoption of digital assets.

Bitcoin on Track for Narrow Weekly Gain as Outlook Brightens; Breakout Imminent?

Bitcoin is currently trading slightly above $3,800 and is down less than 1% for the week. Percentage-wise, bitcoin SV (BSV) was the worst performer among the majors this week, falling 4%.

Ethereum Pulls Ahead

Ethereum pulled ahead of the pack this week, climbing 16% to overtake XRP for second spot in the market-cap rankings. XRP, which fell nearly 3% this week, held the no. 2 spot for the better part of six weeks.

At the time of writing, ether’s price was valued just above $150 for a total market value of $15.5 billion. The so-called developer’s cryptocurrency peaked near $16.3 billion on Wednesday as the price approached $160.

For the first time in months, Ethereum is benefiting from positive news flow ahead of the highly anticipated Constantinople upgrade. The soft fork, which is scheduled to take place Jan. 16, will introduce much needed upgrades to the protocol. It will also lower the block reward for mining ETH, thereby boosting demand for the digital currency. Read more: Ethereum Flips XRP for Second Spot in Crypto Market Ranking Following 12% Gain.

Apple’s Ominous Warning

Apple has finally admitted that it might have a big China problem. On Wednesday, CEO Tim Cook issued a letter to investors warning of an unexpected downturn in revenue for the holiday quarter. It was the iPhone maker’s first revenue cut in 15 years and couldn’t come at a worse time.

The company already faces an uphill battle in an overly saturated Chinese market where low-cost handhelds are taking away market share. As we pointed out on CCN, global smartphone sales likely fell in 2018 and while growth is expected to pick up, it won’t be more than single digits.

Apple’s stock price tanked nearly 10% on Thursday, dragging the company’s market cap below $700 billion. The company’s value peaked north of $1 trillion last year. The selloff in AAPL shares had a noticeable impact on Wall Street, dragging the Dow Jones Industrial Average lower by 660 points. Markets recovered sharply on Friday and are on track for a solid weekly gain.

The Week Ahead

Crypto markets are still in a long-term downtrend, but optimism about the future is quietly growing after bitcoin celebrated the ten-year anniversary of its Genesis Block. Although technical trading continues to dominate prices, a shift to fundamentals is likely in the coming weeks as investors prepare for the launch of Bakkt, the first physically-settled bitcoin futures market.

In terms of traditional assets, the fallout from Apple’s announcement will continue to resonate next week as FAANG stocks continue to struggle. A resolution to the partial U.S. government shutdown, now in its second week, will also be in focus.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 772 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




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Week in Review

Jamie Dimon Gets Crypto Fever as JPMorgan Develops Stablecoin; Bitcoin Fundamental Improve

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JPMorgan Chase & Co, America’s largest bank by a significant margin, shocked the crypto landscape this week by unveiling a new stablecoin project designed to enhance its $6 trillion payment market. For CEO Jamie Dimon, the launch of ‘JPM Coin’ is a significant departure from the anti-crypto tirades of 2017-18. While JPM Coin may not be a cryptocurrency by the traditional sense of the term, its creation comes on the heels of a blockchain revolution that started ten years ago with the launch of bitcoin – the same asset Dimon derided as a “fraud.”

Introducing JPM Coin

On Thursday, JPMorgan Chase unveiled a new stablecoin geared toward enhancing its multi-trillion-dollar payments business. JPM Coin will help clients reduce the cost, risk and processing time associated with cross-border payments. In doing so, it takes a playbook out of Ripple Labs, whose institutional clients are leveraging XRP technology to streamline global payment networks.

As a stablecoin, JPM Coin has a fixed value pegged to the U.S. dollar. The bank said it will support other major currencies in the future. No further details were provided.

In an official press release, the bank said: “We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated.”

More on this story: Morgan Chase’s JPM Coin: A Banker’s Intranet, or the First Major Attack on Bitcoin?

Bitcoin Volatility Drops, Transactions Rise

Although bitcoin’s price failed to attract bids this week, the network’s underlying fundamentals continued to improve. As Hacked reported on Thursday, bitcoin’s January transactions reached their highest level in a year and were nearing levels not seen since the bull market in 2017. At the same time, median fees plunged to their lowest levels since 2015.

The data were presented in a weekly cryptocurrency publication by Diar.

On the price front, bitcoin continued to find support near $3,600. Trade volumes remained elevated throughout the week, only falling below $6 billion on Friday. Average volatility over the past 30 days has fallen to the lowest level in three months, according to data from bitvol.info. Volatility has been in firm retreat since mid-December, right around the time bitcoin established new lows near $3,100.

After surging by $10 billion last Friday, the total cryptocurrency market was little changed this week. At last check, the combined market capitalization was $120.5 billion.

Trump to Declare National Emergency

U.S. President Donald Trump is expected to approve a new budget deal on Friday that avoids a second government shutdown, but will only do so after declaring a national emergency over border funding. By declaring a national emergency, the president can divert funds from the Department of Defence toward the construction of a new border-security fence along the U.S.-Mexico border.

Republicans and Democrats in Congress reached a tentative budget deal late Monday that included $1.38 billion in additional funding for border security. That’s only enough to fund an additional 55 miles of border protection and does not include appropriations for the steel barrier the president proposed. Trump wants $5.7 billion for a steel barrier that extends for 234 miles.

Senate Majority Leader Mitch McConnell, who broke the news on Thursday, said he supports the declaration. However, the plan has been met with criticism from both parties, with Democrats vowing to challenge any efforts to move money without congressional approval.

The Week Ahead

Crypto winter is in a deep freeze at the moment. The landscape has grown colder in recent months as traders continue to discount major fundamental developments centered on adoption and institutional investment. This is further evidenced by the lack of response to JPM Coin, whose creation may usher a new era of legitimacy for crypto projects – at least, in the eyes of traditional finance.

While things are pretty much status quo in crypto and, traditional markets will be forced to contend with the fallout from President Trump’s national emergency as well as ongoing trade negotiations between the U.S. and China. These factors could present new risks for Wall Street’s bullish revival since Boxing Day.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 772 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




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Week in Review

Weekly Recap: Crypto Markets Get a Shake-Up as Litecoin Ascends; Bitcoin ETF Has Another Backer at the SEC

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Cryptocurrencies were on the path to recovery Friday, as Litecoin’s sudden ascendancy propelled markets higher. This had a domino effect on the top 10 coins, whose rankings shifted following Litecoin’s explosive move north. The market’s performance on Friday helped offset a lackluster start to the week that saw coin values plunge to new yearly lows.

Proponents of the VanEck SolidX Bitcoin Trust reignited the debate over crypto ETFs last week after they resubmitted their application with the U.S. Securities and Exchange Commission (SEC). According to an unpublished interview with the Commission’s lone Democrat, it’s only a matter of time before the regulator approves its first bitcoin exchange-traded fund.

Litecoin Surge

Litecoin caused quite the stir on Friday after prices surged 16% in a matter of hours. This allowed LTC to scale three spots in the crypto rankings, overtaking bitcoin cash, EOS and Tether for fourth spot by market capitalization. At the time of writing, Litecoin is nurturing gains of 13% to trade at $37.74, the highest in nearly a month.

While there was no immediate catalyst for the sudden surge, the market appears to be benefiting from news that the Litecoin Foundation is looking to implement new privacy features through the MimbleWimble protocol. This was confirmed by Charlie Lee, Litecoin’s founder.

Market participants also pointed to an upcoming Litecoin halving event as a potential early catalyst for the rally. If that’s the case, investors can expect interest in LTC to gather pace for months to come. The next halving event is projected to occur around Aug. 5, 2019.

Binance Coin: Biggest Weekly Gainer

Binance Coin (BNB) entered the top-ten crypto index for the first time this week, as traders rallied behind a bevy of fundamental news surrounding the exchange.

BNB has been riding a wave of momentum tied to Binance Launchpad, a new platform for token sales. On Jan. 28, BitTorrent Token (BTT) became the first cryptocurrency to be sold on the platform. In the BNB session, all 23.76 billion BTT were sold to participants in less than 14 minutes. The Tron session sold all of its 35.64 billion BTT in less than 15 minutes.

More on the BTT sale: 100% Completed: The BitTorrent ICO is a 15-Minute Sellout.

The market cap for BNB has surpassed $1.1 billion following a 23% weekly surge. The cryptocurrency has gained 31% since the start of 2019.

Bitcoin ETF: Only a Matter of Time

It’s only a matter of time before the U.S. Securities and Exchange Commission approves the first bitcoin ETF, according to Robert J. Jackson, Jr., the agency’s lone Democratic Commissioner. In a soon to be released interview with Congressional Quarterly, Jackson said it probably won’t be long before someone satisfies the SEC’s standards for a crypto-backed fund.

“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so,” he said, according to Drew Hinkes, an Adjunct Professor at New York University.

Jackson added: “Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard, and it should be. Once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt.”

The Commissioner didn’t elaborate on when a bitcoin ETF could be approved or whether the recently re-submitted VanEck-SolidX application could satisfy the SEC’s criteria. However, Jackson did dispute the SEC’s decision to turn down the Winklevoss application last year. More on this story: Crypto Markets See Modest Gains as SEC Commissioner Hints at Bitcoin ETF Approval.

The Week Ahead

The crypto rally on Friday has done little to alleviate concerns that a more protracted bear market is looming. That’s because bitcoin is coming dangerously close to its December 2018 low, having given back a majority of its post-crisis recovery. Where bitcoin goes, the broader market will follow. This remains true with very few exceptions.

This alone doesn’t preclude the possibility of range-bound trading continuing next week. However, prolonged periods of lateral moves have been detrimental for bitcoin, as they are almost always followed by deeper moves south (at least, this has been the case during the last half of the bear market). For now, day trading should be relegated to those willing to assume significant risk. The value proposition for long-term holders remains intact.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 772 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




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Week in Review

Weekly Recap: Crypto Winter Continues as NEM Foundation Crumbles, Bitcoin Falls 7.6% in January

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Crypto winter shows no signs of abating anytime soon. In the past week, bitcoin rounded out its sixth consecutive month in the red while the NEM Foundation suspended all projects and partnerships due to the sinking XEM price.

The news wasn’t all bad, however. XRP received a major boost on Wednesday after Swift, the international payments network, announced it had partnered with a crypto startup to test new GPI payments. This was a significant development for the so-called ‘banker’s cryptocurrency,’ which seeks to disrupt the Swift network’s grip on $200 billion in daily transactions.

Bitcoin Continues to Sink

The end of January marked bitcoin’s sixth consecutive month in the red, highlighting the severity of the bear market. Over that stretch, the leading digital currency has tumbled 55%. Bitcoin fell another 7.6% in January, with the bulk of the declines concentrated in the early part of this week.

On Monday, bitcoin fell by as much as 4% to reach fresh six-week lows. The pullback dragged BTC below a vital long-term support that will likely pave the way for further downward pressure in the near term. Read: Bitcoin Risks Bigger Pullback as Prices Fall to Six-Week Low.

The sudden selloff weighed heavily on the broader cryptocurrency market. The combined value of all cryptocurrencies reached a low of $111 billion. Bitcoin cash, Ethereum, Stellar and bitcoin SV were among the hardest hit.

CBOE Resubmits Bitcoin ETF Application

The Chicago Board Options Exchange (CBOE) has resubmitted a joint application with VanEck and SolidX to list a bitcoin exchange-traded fund (ETF), reigniting a long-standing debate over crypto securitization and its impact on the market. The submittal was confirmed on Thursday by Gabor Gurbacs, VanEck’s chief digital asset strategist.

Just a week earlier, Gurbacs and his partners said they had pulled their application for the VanEck-SolidX Bitcoin Trust. At the time, the proponents felt their application risked immediate dismissal due to the prolonged government shutdown. By re-starting the process from scratch, VanEck and its partners are buying themselves a lot more time to convince the U.S. Securities and Exchange Commission (SEC) to approve their fund.

NEM Foundation Crumbles

The NEM Foundation announced earlier this week that it was edging closer to bankruptcy in the wake of a devastating bear market that first began in early 2018. Despite organizational restructuring and a prior agreement to cut spending by 60%, the nonprofit foundation said it wouldn’t’ survive more than a month without support from the NEM community.

The foundation has appealed to its community for 160 million XEM tokens to help cover operational expenses. At current values, that’s equivalent to $6.57 million. The NEM community will vote on the matter later this month. Layoffs are expected to be announced later this month unless the full funding request is approved, according to Alex Tinsman, the foundation’s newly-appointed president.

Read more: Crypto Winter’s First Victim; NEM Foundation Crumbles as XEM Coin Price Sinks.

XEM is currently valued at $0.0411 for a total market cap of $370.6 million. It ranks 18th among active cryptocurrency projects.

Wall Street Receives an Earnings Boost

U.S. stocks extended their relief rally this week, with the S&P 500 Index clinching its best January returns since 1987. The large-cap index rallied almost 8% during the month, extending its post-Christmas recovery to almost 15%.

Positive earnings surprises from Facebook Inc. (FB), Apple Inc. (FB) and others have underscored the month-long recovery. As of Jan. 25, the fourth-quarter earnings growth rate for S&P 500 companies was 10.9%, according to FactSet. More than two-thirds of companies have reported positive earnings surprises and more than half said their revenues were higher than expected.

The Week Ahead

With a bitcoin ETF application back on the table, the debate over crypto securitization will likely intensify in the coming weeks and months. However, this debate could be put to rest again if Democrats and Republicans don’t agree to a permanent funding solution. The stopgap spending bill announced last Friday covers the affected government agencies for up to three weeks. President Trump has warned that he will declare a national emergency if Democrats don’t approve his proposed border-security funding.

The fallout from the NEM Foundation’s monumental restructuring will also be on investors’ radar next week. As large-cap coins continue to crumble, the long-term sustainability of the market as a whole will come into question. As we’ve speculated before, the long-awaited altcoin extinction event is growing nearer the longer the bear market persists.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 772 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




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Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

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