Market Update 17th April – 23rd April 2019

Hello and welcome to another market update.

In Markets

There was mixed news in the markets this week, though positive sentiment dominated. Bitcoin increased to almost AU$ 8,000, Ethereum rose by 2%, Ripple flatlined, Bitcoin Cash went backwards to the tune of 9%, Litecoin dropped 8% and Stellar lost 5%. Binance Coin was the big winner (again) and shot up another 25% off the back of Binance launching its own blockchain. It brings its total this year to an astonishing 300% plus, topping its January 2018 ATH. The Mayer Multiple (MM) Indicator, which signalled the bottom of the last downturn, is flashing once more. And the 14 week RSI is hovering around 53 to 55, which is pretty bullish. Even UBS thinks the market has turned, but don’t get too excited – the company suggests it may be 22 years before we see a new ATH.

In Headlines

Bitcoin outperforms other asset classes

Thanks to its epic rally a couple of weeks ago, Bitcoin has become one of the best-performing assets in year-to-date yield. Currently, BTC is outperforming mainstream assets and indices—including the Nasdaq, S&P 500, real estate, oil, and gold, with year to date gains of more than 40%.

Predictions of the week

If the number of outrageous Bitcoin price predictions has any correlation to a potential bull run, then strap yourself in. YouTuber Crypto Zombie says that Bitcoin [BTC] could reach $500,000 by 2021-2022. And Chris Burniske, a partner at Placeholder Ventures tweeted this week that Bitcoin will reach a $1 trillion market cap during the next bull run.

Forbes lists billion dollar blockchain companies

Forbes this week revealed its list of companies worth more than one billion dollars that are using blockchain technology. The list contains such household names as Amazon, Walmart, Facebook, ING, Mastercard, Microsoft and Nestle, along with companies more traditionally associated with crypto including Coinbase, European mining and hardware firm Bitfury and Ripple.

Craig Wright files libel suit

In this week’s exciting instalment of Craig S Wright versus the world, ShapeShift and Kraken have followed Binance’s lead in delisting Bitcoin SV. Wright is also headed to court to prove he really is Satoshi Nakamoto (obligatory eyebrow raise), after filing a libel claim in the United Kingdom against cryptocurrency podcaster Peter McCormack who accused Wright of being a big fat fraud. Wright is claiming $130,000 in damages, as well as legal costs and court fees. McCormack tweeted a counter offer:

China’s currency will become crypto

Donald Tapscott, executive chairman of the Blockchain Research Institute, says that China won’t end up using Bitcoin because its own currency will be on the blockchain. Speaking to Bloomberg, Tapscott said that he formed the opinion after meeting with the vice-chairman of the Communist Party of China. “In 20 years we are not going to be using Bitcoin in China. Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”

Crypto ransoms increase dramatically

The average payout for ransomware attacks rose by 89% to $12,762 in the first quarter of 2019 according to Coveware. The firm attributed the rise to the prevalence of more expensive strains of ransomware – which encrypt victims’ files and demand a payment in cryptocurrency to unlock them – such as Ryuk, Bitpaymer, and Iencrypt.

VeChain announces partnerships with everyone

At the VeChain summit in San Francisco this week the supply chain cryptocurrency announced it had partnered with BMW on a digital vehicle passbook, DNV GL, Deloitte and the Draper Network. VeChain also hinted that PwC will announce a huge project on VeChain with a famous company within a couple of months. It also announced a fund worth half a billion to help incentivize developers and businesses to use the platform. The price barely moved though, increasing by less than 2% this week. If you haven’t seen their website, do yourself a favour.

Hacked exchange resurrected

Japanese cryptocurrency exchange Zaif is back up and running, following last September’s massive hack in which about $60 million worth of Bitcoin, Bitcoin Cash and Monacoin was stolen. The exchange has announced compensation for users whose Monacoin was stolen.

UK business travel outfit now accepts crypto

Flight Centre subsidiary, the UK based Corporate Traveller will accept Bitcoin (BTC) and Bitcoin Cash (BCH) payments for its services via third-party payment processor BitPay. Corporate Traveller is the UK’s largest provider of business travel services with offices in 20 locations across the nation. “We identified an increasing demand from our clients for the option to pay in Bitcoin for business travel bookings made by our travel consultants,” said UK General Manager, Andy Hegley.

Until next week, happy trading!

Independent Reserve Trading Desk