10th DECEMBER 2019
This week we cover:
- MICROSOFT AZURE SUPPORTING CRYPTO
- ACTIVE BITCOIN ADDRESSES HITS ANOTHER ATH
- RUSSIA ON SWIFT ACCESS AND A “DECLARATION OF WAR”?
- GREYSCALE REPORT INTERESTING STATS ON MILLENIALS
- BRAVE INCREASES ACTIVE USERS BY 89%
- DEUTSCHE BANK GOES PRO CRYPTO
- GREAT NORTH DATA FILES FOR BANKRUPTCY
- FEAR, GREED AND MENTALITY
- BTC & ETH TECHNICAL ANALYSIS
MICROSOFT AZURE SUPPORTING CRYPTO
Cloud-based service Microsoft Azure announced this week new tokenization and blockchain data management services. Their goal is to “simplify the definition, creation and management of compliant tokens built to industry standards”. The official announcement promises customers “end-to-end experience of easily creating and managing tokens for physical or digital assets … in addition to managing blockchain network itself via Azure Blockchain Service”.
Microsoft also announced a blockchain data manager, a new Azure service “designed to allow its users to capture blockchain ledger data, transform and decrypt it if it is encrypted and deliver it to multiple sources” it’s ultimate aim is to simplify integration of existing applications with data that sits on a blockchain ledger.
ACTIVE BITCOIN ADDRESSES HITS ANOTHER ATH
This week, Alex Thorn (@intangiblecoins) tweeted about the number of active Bitcoin addresses with a balance greater than nil, hitting a new All Time High (ATH). The last ATH was reached in January 2018, right at the peak of the last Bitcoin cycle. And while this figure includes many users who may have multiple addresses, that’s exactly how Satoshi intended it:
The recent ATH is a good identifier for the bullishness of the space and confirms the amount of active users is increasing.
RUSSIA ON SWIFT ACCESS AND A “DECLARATION OF WAR”?
In 2015, the USA and Russia found themselves at a stalemate over an incident in the Kerch Strait which ended with two dozen Ukraine sailors detained by Russia. The sailors were later released in a prisoner swap, helping to diffuse tensions. But at the time American diplomat Kurt Volker had “floated the possibility of Washington blocking Russian banks from SWIFT”, saying that it had “big costs for Russia, but big costs for allies as well”. This week, Russian Prime Minister Dmitry Medvedev reignited the conversation, letting off a warning shot at Washington by saying if they were to implement a SWIFT ban on Russia “this would in fact be a declaration of war…” he went on to say that Russia’s response would be “without limits”.
This resurfaces at a time where global financial tensions are heightened and many indicators are pointing towards a recession. And let’s not forget about Russia advancing its new internet designed to protect it from the rest of the world. It’s a troubling time, and highlights the benefits of a currency, like Bitcoin, that is truly decentralised and is able to be transferred globally as a store of value as well as being decoupled from government interference (unlike SWIFT).
Credit to ZeroHedge for the full article, translations and quotes.
GREYSCALE REPORT INTERESTING STATS ON MILLENIALS
Charles Schwab released their SDBA Indicators Report this week, “an industry-leading benchmark on retirement plan participant investment activity within self-directed brokerage accounts (SDBAs)”. Relating to the US only, it’s a quick glance to see where each generation is investing their 401(k) aka retirement savings.
The report noted “Gen X made up approximately 42% of SDBA participants, followed by Baby Boomers (39%) and Millennials (13%).”
Confirming what we have already been seeing in the media, Millennials are moving towards cryptocurrency, and chose Greyscale Bitcoin Trust as their 5th largest equity holding, besting companies including Microsoft and Netflix. Millennials also are more inclined to prefer Tesla, sitting in 3rd place, compared to other generations. Gen X also included Tesla, at 6th place, coming in below more traditional companies like Microsoft and Berkshire Hathaway. Gen X and Baby Boomers didn’t have Greyscale in their top 10 at all.
When you look at some of the iconic names below, it reinforces that crypto is only just starting to make waves in a space previously reserved for companies run almost exclusively by old white dudes. As crypto starts to get a bigger slice of the pie, we’ll see more coverage and more appreciation in various assets within the crypto space. This is only the beginning.
BRAVE INCREASES ACTIVE USERS BY 89%
Brave Browser has posted an 89% increase in its monthly active user base for 2019, increasing from 5.5 million to 10.4 million. Even more exciting is the number of daily active users which has tripled to 3.3 million.
Cointelegraph stated the increase in awareness and usage for the Brave browser has fostered a “12-time increase in verified publishers” and “Brave reportedly overtook its major competitors like Chrome, Firefox and Opera in Japanese Google Play” for the month of September.
If you’re not already using it or across the Brave Browser features, take some time to check it out. The browser allows users to tip on social media platforms, experience ad-free browsing and also includes the option to participate in ad content and be compensated in Brave’s BAT token.
DEUTSCHE BANK GOES PRO CRYPTO
Deutsche Bank released its “Imagine 2030” report this week, it came with mentions of Crypto and Bitcoin soaring off the back of global financial uncertainty. Deutsche Bank strategist Jim Reid wrote a portion of the report titled “24 ideas for the next decade”, according to news BTC:
“specifically looked to potential risk factors in the “current fiat system,” which he called “fragile” before adding that they “could unravel in the 2020s.” Reid claimed that if this takes place, there will be a “backlash against fiat money and demand for alternative currencies, such as gold or crypto could soar.”
The report itself isn’t the only nod to Crypto, Deutsche Bank is also sponsoring Bitmain’s intent to go public on U.S. markets. According to Blockonomi the “IPO would target a raise of $300 million to $500 million … support of the sale is quite impressive, especially considering that a majority of global banks have expressed anti-Bitcoin sentiment over the years”
It’s a bold statement coming from the 17th largest bank in the world by assets, and one which has come under scrutiny as being unstable itself, facing falling revenues and large redundancies. Watch this space.
GREAT NORTH DATA FILES FOR BANKRUPTCY
Great North Data, a bitcoin mining and AI processing data centre in Canada has filed for Bankruptcy. The company was based in both Newfoundland and Labrador and due to the locations had been receiving support from the federal and provincial governments to stimulate growth in remote area. The first tranche of funding was CA$500k in 2015, which was to be repaid by the company as it grew. As at writing this debt sits at CA$281k, the miners also owe just over CA$300k to the Business Investment corporation – an arm of the provincial governments, which is believed to be tied up in building, land and equipment. The nearby hydro power facility seems to have also been left holding the bag with an outstanding creditor debt of CA$316k.
FEAR, GREED AND MENTALITY
Alternative.me Fear and Greed index continues to sit comfortably in the fearful zone with a reading of 32. It outlines a market that is uncertain. Today we saw some flash crashes in many ALT/BTC pairings, MATIC dropped 75% in an hour, Raven 25% and many others. It signals a market that is being manipulated to take coins from weak hands before any move north. Bitcoin will and has acted very differently, sitting steadily in the $7,000 trading range this week.
Be careful getting caught up in altcoin hype if you are not fully aware of the project. Matic holders saw 100% gains over 10 days leading into an airdrop only to see the project drop 75% in a brutal 1-hour session. Stay safe out there and don’t trade unless you are 100% comfortable with the project and your risk levels.
BTC & ETH TECHNICAL ANALYSIS
The long term lower level trend line continues to act as support for BTC. It is also worth noting that the 500 day MA line (orange) is also acting as a major support line. Previously when BTC breached the 500 MA line bulls were very eager to push it straight back above and they did this with volume too.
Overall BTC is still looking bullish and between $7000 – $7400 USD is looking like a good entry price. If BTC can continue to remain within the trend channel (highlighted in yellow) then we could see BTC breach the 200MA line (in blue) which could cause another bull run.
ETH managed to pass the Istanbul hard fork with no negative price action. The fork appears to have been a “non-event” on price, however, the upcoming ETH 2.0 fork coming in 2020 should not go unnoticed. It is expected anywhere between 60-80% of ETH might become locked up after the ETH 2.0 fork where ETH will switch to Proof Of Stake (POS).
In the medium to short time frame, ETH has had a cross on the 200/500 MA line from the bottom up which could represent positive price action to come. ETH will need to break the trend line and return back into a positive trend line first, however this is looking very possible.
Author: Julian Carruthers
Not financial or investment advice, always do your own research.