Market overview: July 9–15
There were mixed trends on cryptocurrency market last week. Again, Bitcoin couldn’t break the resistance level of $6800 and turned to lower levels. Sunday evening, market trading turnovers are below average; and most altcoins couldn’t get away from valid support levels. Market total cap stabilized at the $250 billion markpoint. Bitcoin has been found in a $1000 price range between $5800 and $6800 for over a month. It might be the so-called saving zone when investors are accumulating the required asset volume. Many traders see the “head and shoulders” pattern on the technical chart which also supports this point. The probability of the trend change could be estimated as average.
The media background is mixed as before. The start of the week was gloomed by the hack of the decentralized exchange Bancor Network. Market reaction was of course extremely negative as security is most often claimed to be the main advantage of decentralized exchanges. But the incident demonstrated that decentralized exchanges have their weak points as well. In this case, the platform’s weakness was used to steal $12 million ETH and $11 million of NPXS and BNT tokens (Bancor internal tokens). Thus, the exchange lost up to $23 million in total. The stolen BNT tokens were frozen with the special tool imbedded into Bancor protocol. The exchange claims that this tool was launched specially for this kind of problems to use it in case of emergency. At the end of the week, Bancor also announced the creation of the crypto supporters union to fight hackers. Based on current information, other cryptocurrency related companies would also join the union, but their names are still kept in secret. Anyway, this initiative deserves a compliment and strong teams’ mutual efforts could really increase the security of the whole industry.
The weeks’ most disputable issue was SEC considering possible launch of Bitcoin-backed ETF. Chicago exchange CBOE filed the application increasing chances for approval. The deadline is set for August 10 with the possible extension until September 24. Buying ETF stocks, investors get the opportunity to invest directly in Bitcoin, no more worries about acquiring and safekeeping cryptocurrency. As long as ‘real’ Bitcoin will be an actual ETF asset, it’s not surprising that many market players have great expectations about SEC approval. On the one hand, the launch of a major regulated ETF can significantly affect the demand and supply balance. On the other hand, the increase in Bitcoin liquidity will lead to further decrease in volatility. Trends by hundreds and thousands percent a year are most likely to become a history.
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