Make Kitco Your Homepage

Crypto SWOT: Trading Volume Slowed Across Many Cryptocurrency Trading Platforms This Week

Commentaries & Views

Crypto SWOT: Trading Volume Slowed Across Many Cryptocurrency Trading Platforms This Week

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was MetaDogecolony, rising 1,375%.
  • A group of engineers and traders at crypto prime brokerage SFOX are working on a way to expand access to Bitcoin for banks and big investors through a bespoke derivative, writes Bloomberg. SFOX’s co-founder, George Melika, said his firm is in talks with large banks and market makers including Jane Street to open a market that facilitates the trading of derivatives, the article explains.
  • Senator Ted Cruz has taken advantage of the Canadian Freedom Convoy protests to advocate for Bitcoin, writes InsideBitcoins.com. During the Conservative Political Action Conference (CPAC), Cruz said he is bullish on the digital currency due to its decentralized nature making it immune from government control.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was BFK Warzone, down 98.22%.
  • Advertisements related to cryptocurrency and NFTs in India must state clearly that such products are unregulated in India and can be highly risky, writes Bloomberg. The words “currency”, “securities”, “custodia”, and “depositories” may not be used in advertisements of cryptocurrencies in India.
  • Coinbase Global shareholders are bracing again for quarterly results that may show the lull in cryptocurrency markets, reports Bloomberg, which continues to dampen the enthusiasm of individual investors. In recent months Coinbase scored an impressive Super Bowl ad, drummed up interest in its upcoming NFT marketplace, and avoided a potential hack of its new trading function.


Opportunities

  • FTX has hired Lauren Remington Platt as its head of global luxury partnerships as the company looks toward marketing efforts beyond the sport realm, Bloomberg reports. In her new role, Platt will target major luxury brands that have yet to integrate with cryptocurrencies as a way to focus more on marketing to other consumer segments.
  • Yearn Finance, a DeFi protocol providing yield farming, lending aggregation and other services, launched on another blockchain network-Arbitrum. Arbitrum is the largest Ethereum layer 2 blockchain, with about $3 billion on total value locked and has much lower fees, according to CryptoPotato.
  • Bitcoin increased 2.5%, back to $39,394, after fluctuating between $37,784 and $39,700 this week. Ethereum increased 3.4%, back to $2,727, after prices fluctuated between $2,546 and $2,747, writes Bloomberg.

Threats

  • Cryptocurrencies extended declines as Russia’s attacks on targets across Ukraine sent risk assets reeling, with Bitcoin slumping to a one-month low. The largest token fell as much as 8.5% after Vladimir Putin’s push to demilitarize Ukraine started with a barrage of missile attacks on Thursday, writes Bloomberg.  
  • Bitcoin is falling while gold is rising as investors seek traditional refuges amid the turmoil in Ukraine, undercutting the often-touted argument from advocates that cryptocurrency is now a digital version of the long-time haven asset, writes Bloomberg.  
  • Trading volume has also slowed across many cryptocurrency trading platforms during the rout in global assets triggered by the Ukraine crisis, writes Bloomberg. Bitcoin’s aggregated daily spot trading volume on Coinbase, Bitstamp, FTX, Gemini, ItBits, Kraken and LMAX Digital was around $3 billion, according to data from researchers Skew.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.