Bitcoin's exciting week!

2 Jul 2019 15:00
Independent Reserve Trading Desk

Market Update 25th June – 2nd July 2019

Welcome back to another Australian crypto market update.

In Markets

It's certainly been an exciting week on the markets, with meteoric gains wiped out just as quickly with swift plunges. Early Thursday morning Bitcoin looked like it was about to break $20,000, but then plunged more than $2000 in a matter of minutes after Coinbase and Robinhood went offline. It's bounced around since and at the time of writing was around $14,900 (and falling). Crypto media has been talking a lot recently about the impending 'altseason' but it's not apparent in the sea of red for the top ten this week. Ethereum was down 5.4%, XRP (-12.5%), LTC (-9.6%), BCH (-12.9%) and EOS (-16.8%). Stellar lost 17.5%, while OMG and BAT bucked the trend to gain 2.6% and 1.4% respectively.

Source: Independent Reserve Bitcoin/AUD chart on Bloomberg

In Headlines

Total perspective vortex

To put the current correction into context, research from 99Bitcoins shows that buying BTC has been a profitable move 97.96% of the time over the course of its history. Bitcoin is still up 18.6% over the month, and suffered a similar 24% correction last month before continuing upwards. Veteran trader Peter Brandt says 30-50% corrections are common in a BTC bull trend and: "I think this thing will work itself out".

Financial Times: Yeah But No But Yeah

London's Financial Times can't make up its mind about Bitcoin. A news feature this week headlined Bitcoin's second coming makes Wall Street think again suggests institutions are piling in and see Bitcoin as an uncorrelated safe haven asset. In Alphaville however, they argue the price is manipulated by Tether, citing as evidence from that $600m of Bitcoin was traded on the 'main dollar based exchanges' on Friday, while according to CMC $53 billion of Tether changed hands that same day (however, CMC says $51.1 billion of BTC changed hands that day).

BTC mining difficulty, hash rate, at record highs

Bitcoin’s mining difficulty is at a record high and the network facilitates an estimated $2.9 billion in transfers each day. The network also hit an all time high of 68,638,992 TH/s on the weekend - twice that of December 2018 and ten times that of June 2017. That means the network is more secure than ever before. In her excellent piece this week 'Price Volatility Versus Systemic Volatility' Forbes' Caitlin Long said the network's power dwarfed the top 500 supercomputers in the world combined.

Goldman Sachs says 'all' financial institutions are looking at tokens

Goldman Sachs CEO David Solomon said this week the finance giant could launch its own coin. He also said: "Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments" because that's "the direction in which the payment system will go."

New Financial Year - Tax season

It's tax season and Independent Reserve has the perfect tool developed with KPMG to save you time and effort and make sense of it all. Get an estimate of your tax obligations on your portfolio with just the click of a button.

APAC Blockchain Conference

The APAC Blockchain Conference, Australia's leading Blockchain event, is back in Sydney on 22-24 July 2019. Developed in partnership with the Australian Digital Commerce Association (ADCA), this year's event will bring together the most forward thinking enterprises, innovative start-ups, and regulatory leaders from the region. To find out more, download the full conference program here.

As one of our valued customers we are excited to extend you a 15% discount, by using the code INDREV_15.

That's all from us. Until next week, happy trading!

Independent Reserve Trading Desk

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