Market Update 5th – 11th June 2019
Welcome back to another Australian crypto market update.
Is this the correction we had to have? Bitcoin’s price dipped below $11,000 a few times this week, but has recovered to now be trading above $11,400. It’s down 4.3% for the week, but up 10% on a month ago. The upcoming halving helped push Litecoin to its best price since May 2018 – it’s up 16.2% this week to $184. Everything else is marginally down over the past seven days: Ethereum lost 4%, Ripple (-8%), Bitcoin Cash (-5.3%), EOS (-8.7%), Stellar (4.9%) and OmiseGO (-5.3%).
Source: Independent Reserve Bitcoin/AUD chart on Bloomberg
Bitcoin and Ethereum transactions up
There were 1.3 million Bitcoin transactions over the past week worth $14.7 billion – up 5.71% on the week before. The average transaction size increased 3.36% to $6,224. Analysis last week by Brave NewCoin shows Ethereum’s fundamentals are also looking good. Average block times are 13.33 seconds – nearly the fastest ever – while inflation is pretty close to its lowest levels ever. On chain transactions per day are around 910,000, up from a yearly low of 430,000 in February.
Bitcoin to hit $25k (or maybe $40k)
Crypto influencer/investor Oliver Isaacs has told The Independent he believes the US/China trade war will see Bitcoin hit US$25k ($A36,000) by year’s end. And Fundstrat co-founder Tom Lee says that if Bitcoin crosses $10k, FOMO will see it shoot to $40k (A$57,500) within five months. He says Bitcoin has only ever traded above $10k for 87 days, or about 3% of its existence. “If you look at half cycles, when you get to that 3% threshold, the typical surge in the next five months is 200-400%,” he said.
Fundstrat co-founder Tom Lee
Crypto analyst Willy Woo says Bitcoin’s Network Value to Transactions ratio is out of whack, which he predicts will cause a correction. If you’re into technical indicators, the GTI Vera Convergence-Divergence indicator flashed a sell signal on Bitcoin last week for the first time since April.
ATO cracking down on crypto
The ATO has been sabre rattling in the Sydney Morning Herald over crypto tax avoidance schemes. “There is definitely legitimate use for investment in cryptocurrencies, but we’re also seeing the use of them to facilitate tax crimes,”” said Will Day, ATO deputy commissioner. On the subject of tax, remember you can get a tax estimate direct from IR.
Bitcoin and crypto dominate Google search
‘Bitcoin’ and ‘Donald Trump’ have been fighting for dominance on Google Search for the past 12 months, according to a new report by analysts ConsenSys. Since the recent price surge though, ‘Bitcoin’ has rocketed ahead. ‘Bitcoin’ is also more searched for than ‘Kim Kardashian’ or ‘Tesla’. Many more people search for ‘crypto’ than ‘cryptocurrency’. Meanwhile, changes to Google’s search algorithm on June 3 reportedly saw crypto news site CCN’s mobile traffic drop 90% overnight. As a result it’s shutting up shop today.
G20 upbeat on crypto
The G20 finance minister and central bank heads have put out a statement ahead of the Osaka summit saying cryptocurrencies “can deliver significant benefits to the financial system and the broader economy.” There will be some regulatory moves coming out from this, hopefully not too draconian.
Until next week, happy trading!
Independent Reserve Trading Desk
加密影响者/投资人Oliver Isaacs 告诉The Independent ，他认为中美贸易战将推动比特币价格在年底前涨到2.5万美元（约合3.6万澳元）。Fundstrat联合创始人Tom Lee亦表示，如果比特币突破1万美元，那么
加密货币分析师Willy Woo表示，比特币的网络价值对交易比率（Network Value to Transactions ratio）
不正常，他预计这将导致价格调整。如果你对技术指标感兴趣，上周，GTI Vera趋同背离指数(Convergence Divergence indicator)自4月份以来首次发出卖出信号。
澳大利亚税务局一直在《悉尼先驱晨报》上对使用加密货币的避税计划吹毛求疵。税务局副局长Will Day说：“投资加密货币肯定是合法的，但我们也注意到使用加密货币协助税收犯罪的情况。” 关于税务问题，您可以直接从