Welcome to this week’s Crypto market update on The Daily Chain. We are collaborating with NKB Group – a full-service investment bank focused on blockchain technology. These updates will include the top news stories of the week, charts, data and more.
Over the past week, bitcoin’s price has rallied significantly above the $8k resistance against the US Dollar. The pair even surged above a new 2019 high approaching $8,360. Later, there was a sharp downside correction, but none of the spot exchanges were looking at much below $7k except Bitstamp which was getting driven hard by a $2k sell wall and dumped out to $6.1k, just enough to drive the average down and fill the CME gap at $6.2k. A fall of more than 25% was bought instantly and BTC is currently hovering around $8k resistance. The rest of the top-30 market performed quite significantly, with gains ranging from 10% up to 50% in some cases.
Top News Stories of the Week
Amazon Files Proof-of-Work Patent Using Cryptography
Amazon has filed a US patent for a PoW system as a tool against DoS (denial of service) attacks which uses cryptography to generate Merkle trees, and which is used by other PoW chains such as Bitcoin to verify the content of large data structures.
CME’s Bitcoin Futures Record Daily Volume
CME Group, the world’s largest options and futures exchange declared its bitcoin futures product recorded a new all-time record of 33.7K contracts sold in one day — shattering the prior records of 22.5K and 18.3K set on Apr 4th and Feb 19th, respectively. Considering each contract is equal to 5 bitcoins, the total notional value of 33.7K contracts equates to more than $1 billion in total value traded, and more than 168K worth of bitcoins.
Whole Foods Now Accepts Bitcoin
Amazon-owned retails Whole Foods now accepts Bitcoin and three other digital assets via its partnership with payments start-up Flexa and crypto exchange Gemini.
Coinbase Negotiates Acquisition of Xapo’s Bitcoin Custody Business
Leading US crypto exchange Coinbase is reportedly in negotiations with Hong Kongbased BTC custodial firm Xapo ($5.5bn AUM) for potential acquisition worth $50m in cash. Speaking at Consensus 2019, Coinbase’s CEO Brian Armstrong has confirmed, that his firm Coinbase Custody (launched 1 year ago) now has $1bn in AUM, growing by $150m monthly.
Microsoft is Building ID Verification Platform on Bitcoin
Microsoft is leveraging blockchain technology to create a trustless digital identity scheme in a project called ION. ION is an open-source, Layer 2 network built out of the public key infrastructure protocol Sidetree. The idea is that instead of logging into Facebook, email or any other application with a username, users can use a digital decentralized ID (DID) instead.
Grayscale Sees 40% Increase of Investment Inflow in Q1
The largest crypto asset manager ($1.2bn+ AUM), saw more than a 40% QoQ increase in product inflows, from $30.1 million in Q4 to $42.7 million in Q1, mostly fuelled by offshore hedge funds looking for BTC exposure. In contrast to the prior 12 months, 99% of inflows into Grayscale products went into its Bitcoin Trust, compared to 76% of inflows over the prior year.
ICO Market is Down 97% in Q1 2019
The ICO market has shrunk dramatically in terms of its size, where the whole market is down by around 97% in Q1 2019, with respect to the amount of capital raised.
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