Global Digital Assets News

We are pleased to announce the new media arm of GDA Capital; Timestamp Magazine.

Reporting on the crypto industry since 2018, Timestamp has carved out a commanding presence across the blockchain and cryptocurrency media landscape. 

Each week, you can expect new articles focused on the blockchain industry discussing topics related to breaking news, technical trading analysis, and thought pieces from industry veterans.

​For your enjoyment, we have attached a copy of one of Timestamp’s articles, an exclusive interview with Dave Hodgson, the Director & Co-Founder of NEM Ventures!

timestamp
Q&A with Dave Hodgson Director & CO-Founder of NEM Ventures

If you are interested in leveraging Timestamp Magazine’s readership in your future initiatives, have ideas for new articles, or would like to participate as a contributor or interviewee, please reach out at info@timestampmag.com.

Welcome back to the second volume of ‘The Digital Asset Digest’, Global Digital Asset’s official market newsletter.

Last week we narrowed our focus onto COVID-19 and its impact on the equities and crypto markets. If you missed the release you can catch up here. This week, we will be broadening our scope and taking a glimpse into the crypto & equity markets at large. 

Market Summary

Digital AssetsBitcoin closed at $6,470 Friday, up 4.4% for the week after Congress passed a historic $2.2 trillion stimulus package to fight the devastating economic impacts of COVID-19. Ether was relatively unmoved, rising 0.90% while XRP closed up 12.3% over the same week.

Equities – The S&P 500 rose 12.1% last week, driven by gains in real estate, materials, and financials as new COVID-19 cases in the US and key European regions have seemed to level off. Treasury yields rose slightly in response. 

Commodities WTI Crude dropped 19.7% for the week as analysts debated whether Saudi Arabia and Russia’s deal to cut oil production would sufficiently offset the lack in demand caused by the coronavirus pandemic. Gold is up 6.5% as deflationary fears linger.

News of the Week

Bitcoin Cash halving met with 11% price surge; BSV follows with 19%

Source: CoinTelegraph

“Bitcoin Cash (BCH) went through with its first block reward halving this past Wednesday, with the coin price gaining 11.2% on the day. Those gains were exceeded by Bitcoin SV (BSV), which gained 19.4% over the same period. Bitcoin SV scheduled its own block reward halving on Friday, April 10th, the excitement around this protocol change was most likely the catalyst for the coin’s price surge last week.

Both Bitcoin forks were the only cryptocurrencies in the green as the market came to a close this past week. However, those gains look to be short-lived, as the market is already trading a few points below Friday’s price.

Crypto trading volumes rise in India after the banking crisis, COVID-19 lockdown

Source: CoinDesk

“India, the world’s second-most populous country, is increasingly embracing cryptocurrencies amid domestic economic issues and the nationwide coronavirus-related lockdown. It started on March 4 when the country’s highest court quashed a Reserve Bank of India (RBI) order dated April 6, 2018, which prohibited banks from providing services to entities dealing with cryptocurrencies. Activity on exchanges immediately picked up… Crypto banking services platform Cashaa noted a spike of 800 percent in trading volumes in the 48 hours following the decision. “The platform also registered a volume of 600+ BTC in the first 24 hours,” said Cashaa CEO Kumar Gaurav.”

Cryptocurrency investors sue exchanges, issuers in New York

Source: Bloomberg

“A group of investors sued four cryptocurrency exchanges and seven issuers claiming they sold billions of dollars of unregistered digital tokens and other securities in violation of U.S. securities laws. The lawsuits name exchanges Binance, Bibox, BitMEX and KuCoin, and issuers Block.one, Tron, Bancor, Civic, Kybercoin, Quantstamp and Status, according to attorneys for the plaintiffs. The suits, filed late Friday in Manhattan federal court, seek to represent classes of cryptocurrency investors.”

China will ‘undoubtedly’ pursue digital Yuan, central bank says

Source: CoinDesk

“China’s central bank has sent one of its strongest signals yet of a commitment to creating a digital version of the yuan. “The People’s Bank of China (PBoC) will undoubtedly further its research and development of the national digital currency with enhanced top-down design,” the bank said in an April 4 notice. The notice is a summary of the 2020 National Currency Gold Silver and Security Work Video and Telephone Conference, convened on Friday by Yifei Fan, the central bank’s vice governor. One of the annual meeting’s goals was to lay out top priorities for the bank in this coming year.”

Token Highlight: Seele (Seeletech)

Seele is a token developed by SeeleTech that describes itself as blockchain 4.0, building on top of previous advances in Bitcoin, Ethereum, and the lightning network. The team’s priorities in building the token are scalability, security, and efficiency. To accomplish this, Seele developed a Matrix-Proof-of-Work consensus algorithm, which forces miners to solve for determinants of matrices constructed with hashes rather than the brute-force hashing methods used by Bitcoin. The algorithm is designed to prevent ASICs and GPUs from dominating the entire network.

Seele completed their ICO in April 2018. Two weeks ago, the team released its Seele Stem subchain beta 1.0, which enables unlimited groups of users to build their own blockchain and interact with the Steele mainnet. As of April 10, SEELE traded at $0.065 with a market capitalization of $45.6 million.

MARKET MOVERS

TOP GAINERS

TOP LOSERS

BITCOIN ANNUAL PERFORMANCE

Source: Yahoo Finance, CoinMarketCap

CRYPTOCURRENCY PRICES

Source: CoinMarketCap

INDICES & COMMODITIES

Source: S&P CapitalIQ

WEEKEND READING: OPINION

The pandemic couldn’t have provided a better environment for crypto

Source: CoinTelegraph

“Had anyone presented the current situation to a crypto enthusiast in December, they likely would have said that they couldn’t have imagined a scenario more conducive to crypto’s macro narrative. That scenario may not be all sunshine and rainbows, though… We may be witnessing a fundamental shift in legacy market sentiment — specifically, the cozy relationship between the government and corporations. The stimulus package revealed that corporations were woefully unprepared for any type of supply/demand shock and had abused low-interest loan rates to buy back their own shares.”

Technical Review

Source: TradingView

Indicators on Bitcoin are bearish heading into the new week after a month-long rally, as BTC broke below the 50-day EMA on Friday. Though RSI seems to signal that there’s still room to rally, MACD convergence paints a bleaker picture, along with weakening momentum signaled by a tumbling ADX. A new high for the month was established at the $7,500 mark, so if resistance is confirmed, this would be a strong indicator of a potential reversal.

QUOTE

“The chief value of money lies in the fact that one lives in a world in which it is overestimated.”

– H.L Mencken

Although the market sentiment is still somewhat bearish, the unprecedented levels of fear and uncertainty from previous weeks have subsided, and so too have the aggressive sell-offs. We hope that the continued perseverance we have seen on a global scale will continue as COVID-19’s economic uncertainty remains. 

We are excited to announce that GDA Capital and Accubits Technologies have formed a joint venture to expand Accubits operations in the United States and launch in Canada. 

Accubits Technologies is a full-service software provider, offering product development services to governments, start-ups, fortune 500 companies, and other commercial businesses. 

​The joint venture allows Accubits to launch a Canadian subsidiary, greatly accelerating the injection of IP, capital, products, and strategic partnerships into new territories.

This corporate structuring allows Accubits Canada to be owned entirely by GDA Capital and Accubits Technologies.

accubits

With GDA’s corporate offices in New York and Toronto, coupled with Accubits offices in Washington, UAE, India, Australia, Indonesia, Switzerland, Singapore, Hong Kong & Norway, this joint venture creates significantly more geographical coverage for both firms. 

CEO of Accubits Technologies Jithin VG commented on the joint venture by saying “Global Digital Assets’ expertise in venture capital, capital markets, trading, blockchain technology, token development, etc is remarkable and that makes me excited about this joint venture. I believe this new initiative will enable both Accubits as well as GDA to better tap into the Canadian market for Blockchain development services.”

A primary reason for choosing Accubits as our strategic development partner is that they are aligned with our corporate values. During this COVID-19 crisis, Accubits has launched the application Break the Chain, to provide governments with better technology to track the spread of the virusBreak the Chain is a blockchain-based tracking network for governments, hospitals and citizens to get access to real-time info on COVID-19 threats near them.

With digital identity cards, shared databases for healthcare & governments, and real-time alerts of people with COVID-19 moving in and out of their areas, the platform creates a complete digital footprint of the virus’s impact. If you know of a government or corporate entity that could benefit from this technology please contact us here.

Over the next few weeks, GDA will be working with Accubits to get their technology in front of governments, corporations and health care agencies to help flatten the curve and reduce the impact of the Coronavirus.

If you want to learn more about GDA’s JV with Accubits, or if you have a business opportunity that is aligned with GDA’s service offerings please reach out at info@gda.capital.

Welcome to The Digital Asset Digest, GDA’s official market newsletter! The Digital Asset Digest will be providing curated insights about the crypto and equities market, amongst other macroeconomic trends. While this newsletter will typically provide a holistic overview of the market, we wanted to narrow our focus today. Therefore, the first volume of The Digital Asset Digest will cover COVID-19, and the grip it currently has on the world’s socio-economic fabric.

With all of that being said, we would like to share some unique insights about COVID-19’s impact on the cryptocurrency markets and how we expect the industry to evolve during these tumultuous times. The sell-off in March was certainly aggressive, but there are a few positive identifiers worth addressing.

BITCOIN VS. COVID-19

Figure 1: Bitcoin YTD Performance

Source: CoinMarketCap

1. As the only true “free market” crypto should be praised, not criticized for its bear run.

Cryptocurrency, in the purest sense, is a ‘free market’; trading desks operate all over the world and stay open 24 hours a day, 7 days a week. Given this context, the sell-off could have been much worse.

Let’s contextualize the crypto markets’ performance by comparing it against conventional equities markets such as the S&P 500 index. Unlike crypto markets, equity trading can be halted by circuit breakers after intraday trading deficits of 7% or more. Even with these preventative measures, the S&P 500 was down 12.5% in March.

Figure 2: S&P 500 1-Month Performance*

Source: Yahoo Finance

*Annotations indicate days on which a circuit breaker was triggered

Comparatively, Bitcoin (BTC) the largest cryptocurrency by market capitalization was down [22%] over the same period. Although on the surface, this disparity is high, when considering crypto operates in an unregulated 24/7 market and equities trade in a highly regulated market with 8-hour trading periods, crypto’s sell-off could have been much worse.

Moreover, if we dive deeper, crypto actually has some positive performance metrics worth highlighting:

  • The sell-off is fuelled by what we at GDA are calling strategic necessity. Mining firms and other institutional entities in the crypto space receive a substantial amount of their revenue in cryptocurrency. But like any other business, they have overhead expenses (rent, salary, equipment) to pay in fiat. So this aggressive sell-off is the direct by-product of firms liquidating their crypto assets to protect their businesses as COVID-19 continues to sink its teeth into the world’s socio-economic treads. We know crypto’s institutional players have a fiduciary responsibility to their stakeholders to sell off their assets and protect their business. But what about on the retail side? Our analysts show that retailers’ long-term sentiment is actually quite bullish.
  • A recent study found that Coinbase users bought 67% more than they sold, which shows that the market sees this sell-off as overly reactive, and retailers are trying to increase their position.

Figure 3: Bitcoin vs. S&P 500 March Performance

Source: CoinMarketCap, Yahoo Finance

2. The argument that Bitcoin is no longer a ‘non-correlated’ asset is untrue.

Another conversational note our anaylsts have seen across headlines is that Bitcoin is no longer an uncorrelated asset. This is simply untrue.

Bitcoin and other altcoins have been in a bear trading period, just like the rest of the securities and equities markets. However, this is not indicative of crypto no longer being an uncorrelated asset or a hedge against traditional investments. Instead, crypto’s market performance is a product of one thing, fear. When traditional fear arises, there is only one asset that goes up, cash. When fear takes a grip on society, people lose interest in growing their portfolio and instead focus on purchasing essentials like food and water, which can only be done with cash. So the main catalyst for Bitcoin’s bear run is not because it is suddenly correlated to traditional equity markets. Rather, Bitcoin’s bear run is a product of people liquidating their non-cash assets because of rising levels of fear as people race to purchase essential goods.

In the graph below, analysts have plotted the 30-day rolling correlation between Bitcoin and the S&P 500. The correlation between Bitcoin and the overall equity market is clearly in a constant state of flux and our analysts are unconvinced that the sell-off in cryptocurrency and equity markets this month is indicative of their future relationship.

Figure 4: Bitcoin vs. S&P 500 30-Day Rolling Correlation

Source: Yahoo Finance

Although the socio-economic factors affecting the international economy are obvious, we have seen a more aggressive resistance by the market then what could have been expected. We can only hope that this is a sign of continued perseverance by the global economy against the uncertainty of COVID-19. 

At GDA we encourage everyone to be diligent and follow the market. Although the outlook is grim now, we anticipate some lucrative entry points in the near future.

Until then, practice social distancing, isolate whenever necessary, and stay safe.

Warm regards,

Global Digital Assets

Quote:

“The risk of a wrong decision is preferable to the terror of indecision.”

– Maimonides