Frank Holmes
Crypto SWOT: Bitcoin formed a "death cross" last week. Will the price continue to fall?
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Featuring views and opinions written by market professionals, not staff journalists.
Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was TOMI, rising 30.13%.
- Brevan Howard Asset Management is predicting a potential boom in digital assets similar to what the internet has seen in the past couple of decades and is looking to make “disproportionate returns,” according to an article published by Bloomberg.
- What's good for equity investors appears to be beneficial again for cryptocurrency enthusiasts, with Bitcoin rebuilding its correlation with technology stocks. After a breakdown in the directional relationship between the two asset classes in June, Bitcoin is back to mirroring the price moves of the surging Nasdaq 100 Index, writes Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was APE, down 16.64%.
- Binance.US CEO Brian Shroder has left the crypto trading platform and has been replaced on an interim basis by the company's Chief Legal Officer. The company is eliminating about one third of its workforce, writes Bloomberg.
- Bitcoin's 50-day moving average crossed below its 200-day moving average this week, forming what is known as a “death cross” in the technical world. This is a bearish technical indicator and points to Bitcoin prices potentially heading lower.
Opportunities
- Former Goldman Sachs Group managing director Javier Rodriguez is joining XBTO, the crypto investment firm that's the jersey sponsor for football superstar Lionel Messi's new team Inter Miami. His role will include overseeing XBTO's expansion into new products and asset management strategies, writes Bloomberg.
- Kasikorn Bank, Thailand's second-largest bank by assets, has launched a $100 million fund to invest in Web3 and artificial intelligence startups. The fund has been set up by KBank's tech arm, according to Bloomberg.
- Deutsche Bank AG is one step closer to launching a digital assets custody service after finalizing a deal with Swiss crypto technology firm Taurus SA. The bank will use the startup's technology for providing custody and tokenization services, the two firms said as reported by Bloomberg.
Threats
- Singapore's central bank imposed nine-year prohibition orders on Su Zhu and Kyle Davies for transgressions at their collapsed crypto hedge fund Three Arrows. The orders from the city's financial watchdog took effect Wednesday and ban both men from any regulated activity, according to Bloomberg.
- The CFTC's enforcement director called unregulated decentralized finance exchanges an “obvious threat” in recent remarks following the agency's charges against a trio of Defi protocols last week, writes Bloomberg.
- Coinbase Global's volumes and the price of Bitcoin could be decoupling, according to Mizuho's Dan Doley, pushing the underperform-rated analyst to question if the stock's 128% rally this year is sustainable, reports Bloomberg.
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