Crypto Market Forecast: 17th June
Bitcoin prices hit new 2019 highs as the bull roared back into the market and prices comfortably crossed the $9000 mark. In other news, the impressive list of supporters for Facebook's new blockchain projects is exciting many across the wider ecosystem
The crypto markets bounced back strongly this week following an unsteady start to June. Benchmark asset BTC led the market, rising an impressive ~17%. BTC comfortably crossed the significant $9000 price level on Monday before pulling back slightly as the week closed. It currently trades at ~$8,988. The number two and three digital assets on Brave New Coin’s market cap table, ETH and XRP, rose 14% and 9% respectively, with most large-cap alt coins performing strongly alongside Bitcoin. The total crypto market cap rose ~15% in the last week.
Bitcoin’s steady rise towards the $9000 price level through the course of the week was complimented by impressive fundamental activity across the network. The Bitcoin hash rate hit new all-time highs in the last week, while the daily active Bitcoin addresses metric is rising towards 1 million addresses. A higher hash rate means greater protection for a proof-of-work network against malicious attacks. It also suggests improving market sentiment, as rising prices incentivize miners to return to the network.
An increase in active addresses is generally a sign of a blockchain’s growing network effects. A cryptocurrency’s network effects increase when new users join and strengthen the network, making it more valuable for existing users. The most direct network effects are improved liquidity and utility. More daily active users can be indicative of a higher level of merchant or institutional adoption (more places to spend and use BTC) and more counterparties willing to accept BTC for payments or more platforms to access it.
A number of major news announcements hit the ecosystem over the last week. Facebook, as reported by crypto news outlet The Block, has managed to secure support from an impressive list of partners and industry heavyweights for its upcoming cryptocurrency project, Libra. Names include Mastercard and PayPal from the payment services space, eBay from e-commerce, Andreessen Horowitz from venture investing and, Uber from ride-sharing services.
The geo-fencing of US-based traders by major altcoin exchanges has become a topic of concern for many ecosystem participants following the release of an updated terms of service document from major exchange Binance. It says Binance will revoke trading on a number of digital asset markets for US-based users beginning in September. While the effect on the wider ecosystem is likely to be negligible, it means that US traders will lose the ability to trade a number of Binance exclusive altcoins including; LINK, NANO, ONE and VET. Longer term, further restrictions placed on US traders may increase the use of decentralized exchanges.
This week in crypto events
21st June- Market availability changes for US-based Bittrex customers
Long-running altcoin exchange Bittrex closes a number of altcoin markets off to US customers this Friday. US customers will have to withdraw their digital assets from Bittrex before the official deadline on Friday. The closures are the result of Bittrex’s position as a compliant U.S. Digital Asset Trading Platform.
18th June- Periscope and ‘Ask Me Anything’(AMA) with Binance CEO Changpeng Zhao (‘CZ’)
The CEO of leading crypto exchange platform and ecosystem brand, Binance, hosts a livestream on Periscope this Tuesday. Binance continues to frequently drive news stories and market sentiment within the space. The upcoming geo-fencing of US-based customers, the strong price performance of its native token BNB, and the growing usage and adoption of the Binance DEX solution are likely topics for discussion.
It was a strong week of trading for most large-cap altcoins, with double-digit gains for a number of key digital asset markets. Litecoin (LTC) continued its impressive recent price run, rising more than 16% in the last week and picking up steam for its block reward halving set to occur on August 7th. Outside of the top 10, as highlighted by Cryptocurrency Newsfeed, LINK rose ~67% on the back of news that Google would be partnering with Chainlink. LINK currently occupies the 24th position on Brave New Coin’s market cap table.
The Bitcoin community was finally able to embrace the ‘it’s over 9000’ meme this week as Bitcoin hit new 2019 highs of ~$9,358 on Sunday. The $9000 price level remains precarious as BTC prices have continued to hover just above or below it over the last few days of the week.
The number of new shorts and longs opened on Bitcoin derivatives market Bitmex suggests that market sentiment is evenly matched between the bears and the bulls. Current Long/Short percentage on the platform sits at 49% to 51%, suggesting that traders are unsure of the market’s next move.
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