Goldman in and out comments sink the market. Winklevoss brothers secure a patent for Storage of Math based assets. Coinbase learns the art of financial ETF from Blackrock, may soon make an application. Satis Group brings a bullish view on Bitcoin, although is not really happy with XRP. IBM brings Stellar in use to Launch Cross-Border Payment Systems. Garlinghouse and Arrington clear out the FUD around XRP, call government intervention a roadblock. Internationally Uzbekistan Legitimizes Cryptocurrency and Iran Accepts Cryptocurrency Mining as Industry.
A week that created a havoc on the crypto street because of the confusion around Goldman’s crypto trading operations. Nothing mattered actually much beyond this as the prices swung from positive to negative and back positive. After months of speculation and hints, Goldman Sachs appeared to put to rest the idea of its launching a cryptocurrency trade desk in the foreseeable future earlier this week. However, a senior-level Goldman executive, Martin Chavez, later indicated that the report of the bank’s plans to shift away from a crypto desk was “fake news.” If the original bit of Goldman news was what sent cryptocurrencies spiraling for the rest of the week, the “fake news” claim does not seem to have caused a resurgence in value. While the clarity of Goldman operations finally came in, The Winklevoss brother continued to gather intellectual property rights with patents on new blockchain applications.
Late in the week, news broke that the U.S Patent and Trademark Office had awarded the brothers a patent under the title “Systems and methods for storing digital math-based assets using a secure portal.” The patent describes a means of securing a network of computers which can then generate digital asset accounts to store cryptocurrencies securely.
No week can go without the news of Bitcoin ETF, not is this week. Business Insider reported this week that Coinbase spoke with Blackrock to get some advice on their alleged crypto-ETF. If you’re hoping for a partnership announcement, you shouldn’t get too excited. The talks seem to just be the case of big brother Blackrock helping out little brother Coinbase navigate the complicated ETF process. With nine ETF pseudo-rejections so far, it’s evident Coinbase wants to do it right with their first swing at the plate. From the research front, Bloomberg Research recently published a report by Satis Group, and the findings should make you smile. Well, depending on which coins you support. The report lists positive forecasts for Bitcoin, Monero, and Decree which are expected to reach $96k, $18k, and $535, respectively, within five years.
If you’re a Bitcoin Cash or XRP supporter, you may want to stop reading here. Satis Group predicts price points of $268 for BCH and just $0.01 for XRP over the same time period. Stellar expands its use case as IBM is continuing their plunge into blockchain with Stellar. This time with a complete cross-border payment system, dubbed World-Wire. World Wire aims to reduce the settlement times of worldwide transfers from days to a matter of minutes. How? Hitching onto the back of the Stellar protocol (R’uh R’oh Ripple).
World Wire now joins the long list of blockchain products that IBM offer or is planning on offering over the next couple of years. Garlinghouse and Arrington appeared on Techcrunch’s conference to clear the FUD around XRP decentralization and security. The even shared their views on America’s place in the big crypto race. According to them, unclear government regulation as the major roadblock to U.S. innovation and investment. Other stopping points include the tax burdens and difficulty of getting a U.S. visa. Thanks, SEC.
In a significant development, around the world, the President of Uzbekistan, Shavkat Mirziyoyev, has now signed a decree that permits the existence of cryptocurrency exchanges and other activity surrounding the industry. According to a news portal, Unhashed, the decree gives an account of the policy details pertaining to cryptocurrencies. It has also laid out a host of requirements that exchanges must have to follow in order to operate in the country.
As per decree crypto activity won’t be regulated by current legislation surrounding securities and that it will instead be regulated by specific acts put into place for digital assets. The exchange license will be granted to foreign entities only if they meet certain criteria, mentioned in the decree. From the mining front, Iran Government Accepts Cryptocurrency Mining as Industry. According to Iranian news daily IBENA, Secretary of Iran’s Supreme Council of Cyberspace has now stated that cryptocurrencies mining like Bitcoin has been accepted as an industry in the government and all related organizations to the mining such as ministry of communications and IT, central bank, ministry of industry, mining and trade, ministry of energy, as well as ministry of economic affairs and finance have agreed it, but the final policy for legislating it hasn’t been declared yet.
Goldman Sachs confusion was clearly seen across the street and it was a bloodbath in the true sense as the market cap for major cryptocurrencies was cleared in hours including that of the Bitcoin. The prices hit the high point of USD 7,388.43 and the lowest point of USD 6,197.52 during the week. Apart from the outliers of BitMEX and BitForex that had volumes of 26.68% and 17.67% respectively, the exchanges that were more active, in volumes, with BTC across various pairs this week were, Binance (3.05%), Bithumb (2.80%) and OKEx (2.00%)
As bears return t the street, the bring along bear predictions. Dan Roberts of Yahoo Finance said that the Bitcoin prices could rise in the future but it would never go back to $20,000. He stated:
“It is unfair for people to expect it to reach that $20,000 mark, there is strong evidence on how the market had been manipulated by a lot of investors who had huge holdings thus resulting in the prices to increase drastically.”
Ethereum wasn’t speared as the cookie of the crypto market crumbled. Furthermore, Buterin turned bearish on his own creation. It took a nosedive of 35% getting it into the oversold territory. Ethereum price, on the top, this week were at USD 295.59 and were at lows of USD 193.26 expanding its range on the downside. The markets that were more active, in volumes, with ETH across various pairs this week were OKEx (2.94%), Huobi (2.73%) and Binance (2.29%) again BitForex being an outlier 41.76%
In an interview with Bloomberg at an Ethereum and blockchain conference in Hong Kong, Buterin said that
“The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once.”What this means is that “there isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.”
This took Short Positions on Ethereum Reach All-Time High on Bitfinex.
XRP too saw Brad Galinghouse and Arrington clearing FUD around the coin but that wasn’t enough as the coin crumbled under the bear sentiment taking it down 20% this week. On the top, this week the prices of XRP were at USD 0.343684 and towards the bottom, it quoted USD 0.273789. The exchanges that were more active, in volumes, with XRP across various pairs this week were Bitbank (14.23%), HitBTC (11.13%) and Binance (6.31%)
Chris Larsen, the executive chairman and co-founder of Ripple, has recently revealed that the company now has over one hundred production contracts signed, sealed and ready to implement. The news was revealed at the Crypto Finance Conference, which took place recently in Half Moon Bay, California. Larson spoke in front of a backdrop which depicted several of the 100+ companies which have signed contracts with Ripple.
The other movers and shakers
The Other coins that made to the top and bottom this week according to Coin Market Cap (accessed on Sept 9 at 10:30 pm IST) were.
- Webcoin – Showing a rise of 352.52%
- BitcoinDark – Showing a rise of 236.05%
- Karatgold Coin – Showing a rise of 161.32%
- ETERNAL TOKEN – Showing a drop of 67.28%
- BetterBetting – Showing a drop of 60.32%
- EPLUS Coin – Showing a drop of 57.89%
What do you think would be the sentiment of the crypto markets next week? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.