Monex Crypto Market Weekly: February 7

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This post is a translation of the weekly cryptocurrency analysis by Block Insight, a wholly owned subsidiary of Monex Group (Tokyo, Japan). Monex is the parent of TradeStation Group.

Summary

  • After initial weakness due to uncertainty surrounding the coronavirus, Bitcoin (BTC) rebounded and rose about 5 percent in the last week.
  • Altcoins such as Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC) saw strong gains.
  • BTC resistance is now $10,000 while support is $9,200.

Market trends this week

Cryptocurrency prices rose across the board this week as money flowed into altcoins like Ethereum (ETHUSD) and Ripple (XRPUSD). Some positive headlines helped drive the rally.

First, news broke that BitMEX users can now buy and sell XRP. Second, XRP announced a partnership with International Money Express (Intermex). The partnership will leverage XRP’s RippleNet to develop faster and more transparent cross-border remittance services between the U.S and Mexico.

Bitcoin SV (BSV) also remained near its recent highs as “halving” approaches in April. Halving, a process that reduces the supply of new tokens, often supports cryptocurrency prices.

The coronavirus outbreak in China showed that cryptocurrencies continue to enjoy a “safe-haven” status. Crypto prices initially rose after the World Health Organization (WHO) declared an emergency. They later fell on news that Beijing’s anti-virus measures were working.

Bitcoin (BTCUSD), hourly chart.
Bitcoin (BTCUSD), hourly chart.

This Week’s Topics

  • Trading fades in Bakkt’s Bitcoin (BTC) options trading as CME continues to see activity. (1/31)
  • Tokyo-based LastRoot changes name to “Ok Wallet.” (1/31)
  • Softbank and Yahoo Japan invest in the smartphone-payment service PayPay. (1/31)
  • Cambodia plans to issue Central Bank Digital Currency before the end of March. (2/1)
  • Blockpunk and Searchfield exhibit technology for proving the authenticity of art including illustrations and T-shirts. (2/1)
  • Payment startup Contour uses blockchain for issuing letters of credit, reducing the time frame from two weeks to less than a day. (2/1)
  • New York-based Metropolitan Commercial Bank’s crypto deposits have dropped 52 percent as competition increases. (2/2)
  • Crypto exchange Bittrex has insured up to $300 million in digital assets in offline (“cold”) storage. (2/2)
  • Arab leaders at the World Economic Forum (WEF) express skepticism about the use of BTC for settling large oil transactions. (2/2)
  • Money transfers on the Ethereum network using stablecoin has now exceeded the native currency. (2/3)
  • A study by DeFi Pulse indicates that distributed applications (dapps) using ETH continue to grow, even as prices fall. Crypto lending is the most popular activity. (2/3)
  • Microsoft (MSFT) has discovered a mining virus hidden in a desktop wallpaper featuring deceased basketball star Kobe Bryant. (2/3)
  • Gaming developer Mobile Factory plans to launch a game letting players use cryptocurrencies. (2/3)
  • Coindesk reports that crypto-lending firms like Genesis and BlockFi are growing more rapidly than traditional banks. (2/4)
  • The Monetary Authority of Singapore (MAS) has allowed tokenized-securities trading companies to operate fully in its jurisdiction. (2/4)
  • The Japan Music Copyright Association (JASRAC) will test registering and sharing music with blockchain technology. (2/4)
  • Sumitomo Mitsui Trust Bank will test using blockchain technology for inheritance procedures. (2/4)
  • Gartner predicts that the use of blockchain smart assets will raise data quality by 50 percent in the next two years. (2/5)

Next Week’s Market Forecast

BTCUSD may test $10,000 in the next week given its strong momentum. Downside support lies at $9,200.

ETHUSD is also testing an old high from last September, between $224 and $225. Investors may want to increase attention on altcoins, which have recently outperformed BTC.

News involving the coronavirus may also impact prices.

Next Week’s Topics

  • 2/10: Digital Asset Summit in London.

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