Weekly Analysis for Cryptocurrency Market | Aug. 27 — Sep. 2
This week, affected by tariff-related news, the market fluctuated, but the three major stock indexes of the US stock market all increased. The three major stock indexes also rose in August, and the Nasdaq index hit its biggest monthly increase since January. Mexico and the United States reached a bilateral agreement, but trade concerns reappeared later this week, as the report said that US President Trump is preparing to impose tariffs on another $200 billions of goods imported from China as early as next week. At the same time, the negotiationsbetween Canada and the United States on the North American Free Trade Agreement (NAFTA) ended and the parties failed to reach an agreement.
The stock index showed more volatility this week. The Dow Jones Industrial Average fell 22.1 points, or 0.09%, to 25,964.82 points. The S&P 500 index rose 0.39 points, or 0.01%, to 2,901.52 points. The Nasdaq index closed 21.17 points higher, or 0.26%, to 8,109.54, achieving the biggest monthly increase since January.
On August 27th, the US stock market closed higher on Monday, and all sectors rose. The S&P 500 and Nasdaq index closed record highs for the second consecutive day, as the US and Mexico reached a trade agreement to boost market sentiment. On August 28th, the US stock market closed slightly higher on Tuesday. The S&P 500 and Nasdaq index closed record highs for the third consecutive day, as positive progress in the trade disputes that plagued the market for most of the year led to a rise in the market, which makes it difficult for investors to decide whether to take profits. On August 30th, the US stock market opened lower on Thursday. The S&P 500 and Nasdaq index ended a record high on the 4thconsecutive day, as the optimism about the US-Canada trade negotiations was offset by the worries about the US-China trade dispute.. The market’s general decrease trend intensified in the middle of the afternoon of August 31, asthe Bloomberg reported that US President Trump hopes to impose tariffs on Chinese goods that worth $200 billion as early as next week, much earlier than many expected.


This week, the digital currency has risen steadily. In the case of a stable market, market funds began to flow into individual currencies and sectors. On August 27, the volume of transactions in the cross-chain/sidechain sector surged in particular and the increase exceeded 20%. Besides that, the price of Bitcoin broke the $7,000 mark on the day. On August 28th, Bitcoin oscillated back and forth in the range of 7,000 US dollars to 7110 US dollars. However, the situation was shuffled in the early morning of August 30, and the hard-line offensive results brought Bitcoin back to the $7,000 line. In the case of Bitcoin’s loss of $7,000, the major cryptocurrencies fell across the board. At 2:19 pm on September 2, Bitcoin broke through the $7,300 mark in an empty-wing tug-of-war (the individual exchanges reached a maximum of $7416.9), but the time of maintenance was very short, showing that the resistance of Bitcoin to reach $7,330 is still relatively great.
The situation in Ethereum is still not optimistic, and the price has never exceeded $300. At the beginning of this week, the competitive tokens represented by Ethereum fell by more than 20%, driving many tokens to sneak down the bottom line. Combined with last week’s decline, we can think that this is because the group panic caused by the fall in bitcoin price has led some project parties to sell tokens. The founder of the Bit Times, Huang Tianwei, mentioned several points in the live broadcast, which can explain the recent problems in Ethereum. First, the main value of ETH in the eyes of most people is the ICO based on smart contracts. ICO has recently been refrigerated, and ETH decline is inevitable. Second, after the capital injection in the bear market fell by several orders of magnitude, the project parties were forced to cash out, and the small investors also left the market with the flow.
The plunging of ETH and other tokens is undoubtedly a “token disaster” for most investors, giving people the illusion that winter is coming. However, from another perspective, this will be more conducive to the development of blockchain technology, to shift people’s focus away from the secondary market, and to pay more attention to the benign development of the industry itself.
So when will the long bear Ethereum market that lasts for several weeks go over? Chen Jiu, founder and CEO of ChenJiu Finance and founder of BLCOK VC, said that how long Ethereum can fall depends on when the entire market picks up and the impact of its public chain competitors. Li Chen, CEO of Coin Capital, gave a clearer direction: Ethereum’s decline will continue until the POS goes online cause the operation of POS needs to lock a large number of ETHs.
Hot Spots
On August 27th, after the two Internet giants of Tencent and Alibaba cut off the off-exchange payment channels of digital currency, Baidu also joined the comprehensive blockade of the crypto circle. The lively digital currency, virtual currency discussiongroupswere all banned, and even some unnamed crypto discussion groups disappeared without a trace.
On August 28, Alipay said that it would take appropriate measures to deal with personal accounts that are suspected of virtual currency transactions. On the same day, the US Department of Justice special agent expressed doubts about the prospects of widespread adoption of cryptocurrencies in Western countries, and hoped that the crypto industry would help arrest criminals.
On August 29, the PricewaterhouseCoopers survey shows that 84% of companies are involved in the blockchain and “trust” may be the main obstacles used by the blockchain. On the same day, the United States St. Louis Federal Reserve Bank issued a research paper confirming the legitimacy of Bitcoin as a currency.
On August 30th, Chen Weixing returned to the onlinecar-hailing service to launch the VV Go blockchain application. The blockchain-based online car-hailing platform can share all drivers and passengers’ information in a timely and transparent manner. Once passengers make emergency calls other drivers and police can respond quickly. On the same day, sources said that the Chicago Board Options Exchange (CBOE) will launch Ethereum (ETH) futures at the end of 2018.
On August 31, according to bitcoin.com, Bitpay officially announced that Bitpay will increase bitcoin cash settlement services. On the same day, Morgan Creek Investment Corporation launched a digital asset index fund that will include Bitcoin and Ethereum and exclude ripples and lumens from the portfolio.
On September 1, Japan Lotte today announced the acquisition of the Japanese exchange “min-btc” and entered the cryptocurrency exchange business. The exchange is applying for registration with the Japan Financial Services Agency and has received business improvement orders and is currently one of 16 quasi-exchanges.
On September 2, the econometric model puts the “intrinsic value” of BTC between $1080 and $8778. On the same day, according to the Bitcoin exchange guide, a report released by Ecobank Transnational stated that most African countries allow the use of cryptocurrency but the policy is vague
Policy Trends This Week
The Guangzhou Municipal Administration of Industry and Commerce issued the “Opinions on Deeply Studying and Implementing the Spirit of the Important Speech of General Secretary Xi Jinping to Implement “Four Positions in the Forefront of the Country”and proposed to pilot the “blockchain + commercial service” model in Huangpu District
The Beijing Internet Finance Industry Association issued the “Risk Tips on Preventing Illegal Fund Raising in the Name of “Virtual Currency”, “Block Chain”, “ICO”and Its Variants”.
The Shenzhen Internet Finance Association issued the “Risk Tips on Preventing Illegal Fund Raising in the Name of “Blockchain” and “Virtual Currency”. And called on all member units to consciously resist illegal financial business related to virtual currency and pseudo blockchain.
The National Internet Finance Working Committee issued the “Response on Agreeing to “Working Together to Promote the Chain Reform Action Plan”, agreeing to the blockchain reform. The National Action Committee and the China Communications Industry Association Blockchain Professional Committee work together to promote the “chain reform action plan”.
