We are starting to see the COVID-19 edition of Crypto’s latest market trend. Last week, we reported some healthy gains across all key markets. This week, the opposite can be said as most of the market is in the red. As traders and investors are stuck at home, we are starting to see the emergence of a crypto cycle, where Bitcoin bounces between the $9,200-$10,000 range and is having trouble getting out of this territory.
With our usual breakdowns plus some exciting company announcements included in this week’s newsletter, we hope you enjoy the 13th edition of The Digital Asset Digest.
Digital Assets – Bitcoin closed out another rough the week at $9,275, down 4.38%. Its been a few weeks of cyclical movement, where once it drops below a certain threshold, we see renewed interest that propels it close to $10,000 again. We expect to see similar volatility this week and moving forward. Ether saw similar struggles, closing the week at $230.50, down 5.56%. Ripple fared no better, trailing almost 6% to $0.178 over the same period.
Indices – The S&P 500 closed down 2.07% for the week, but has begun to recover and is now up 1.47% on the day. The DOW saw similar movements, as it is down 1.65% for the week, but with a 2.32% increase on Monday as well, we hope this is speaking to a larger rebound in the market this week.
Commodities – WTI crude continues its recovery after the sector was one of the worst-hit by COVID-19, up 3.14% on the week. As Gold’s digital cousin had another rough week, the original store of value continues to show the merit behind its risk-averse qualities, finishing up 0.97% over the week.
Presenting the Broker’s Beat
While the Digital Asset Digest providers our readers with a holistic market overview, we have gotten several requests for material that is more focused on crypto trading and market movements. Our trading and liquidity subsidiary, Secure Digital Markets is launching ‘The Broker’s Beat’, a newsletter made especially for crypto-traders.
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“In the June 2020 edition of the Crypto Research Report, researchers predicted the price of Bitcoin (BTC) and other altcoins — Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Stellar (XLM) — would get a huge surge before 2025, which may continue for at least five years.
We believe that Bitcoin is still at the very start of its adoption curve,” the report states. “The price of $7,200 at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets [worth $212 trillion]. If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.”
“Hosting a booming period of online creation and technological advancement, the late 90s saw the tech bubble expand to staggering heights, only to pop shortly after the new millennium began. Speculative investments and trading facilitated rapid market gains, for a time, until the party ended in the early 2000s. The cryptocurrency industry saw a similar bubble in 2017. Was 2017 and early 2018 crypto’s dotcom boom, or is it still coming?”
“This is not the first time that Paypal has dabbled with cryptocurrency. As far back as 2016 Paypal offered Coinbase users the ability to withdraw their fiat money to Paypal accounts. While Paypal has so far only had one foot in the door, all the while other fintech payments companies are making money in the crypto space, It seems Paypal now wants in.
Square, a payments solution and competitor to Paypal, gave its CashApp users the ability to purchase and store cryptocurrency as far back as 2018. Back in May of this year, CashApp reported quarterly revenue of over 300 million dollars from Bitcoin purchases and transactions.”
“The repeal of a blanket ban on cryptocurrencies in March by India’s central bank, the Reserve Bank of India, has been a boon to the thriving crypto industry in India — with the launch of new exchanges being a catalyst.
This is despite the country being one of the most severely affected nations by the COVID-19 pandemic, which has led to a deepening economic crisis across the nation. For investors and fintech innovators alike, cryptocurrency and blockchain technology have proven to be a much-needed respite in these challenging times.”
With traders stuck at home and business adoption stalled, we are starting to see the crypto market behave in a very cyclical fashion. However, as society gradually starts to re-open we are curious to see how this will impact the market in the short term.
Although the fear from COVID-19 was felt during the early stages of quarantine, the speed at which the stock & commodities market has rebounded has excited many, while also puzzling a few analysts along the way. With international trade still operating with a limp, and so much domestic economic uncertainty, we encourage readers to be careful of over-exposing their portfolio in a time that is filled with uncertainty and when everyone is operating in the unknown.