Traditional market review for the past week from our partners. Can a breakdown on CoinMarketCap become a forecast for the future?
Last week was the week of correction. Everyone is already so used to cryptomarket declines that no one was really surprised by the Bitcoin fall by 15%, down to the $7000 markpoint. This is the price Bitcoin was trading at on Sunday evening. For the fifth time this year, market total cap is close to $250 billion.
On Friday, August 3, we saw a sharp spike in rates on CoinMarketCap. It was explained by the price calculation error on Tether. Some cryptocurrencies demonstrated a temporary growth by 800-1000%; and some platforms showed the Bitcoin rate above $70000. Some cryptobloggers commented that it was a glimpse at the future.
Meanwhile, for the riskiest traders, BitMEX launched Ethereum futures with 50x margin. BitMEX is one of the most liquid platforms providing market players a possibility to hedge major positions. South Korean cryptoexchange UPBit came out clean in an audit report from the Seoul accounting firm Yoojin. UPBit assets are claimed to exceed customers’ deposits by 27%. It means that in case of emergency, the company can fully compensate customers’ losses. We also expect some good news on cryptoexchange self-regulation from Japan where leading platforms were prescribed to eliminate a number of failures like (first and foremost) better money laundering prevention measures.
Let’s finish with the usual exchange updates and get to the important news on cryptocurrency practical use. We hope that Vitalik Buterin proves himself right as he recently said: «I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores».
The other day, the leading crypto payment processor Bitpay announced the increase in popularity of cryptocurrency payments. BitPay did $1,2 billion in Bitcoin payments in 2018. According to the BitPay CEO Sonny Singh, Bitcoin is getting more popular and is used not only for speculations and trading, but also for purchasing goods and services.
Ar announcement concerns the NYSE operator Intercontinental Exchange. The company announced that it planned to form a new company, Bakkt, which intends to create an open and regulated, global ecosystem for digital assets. The Bakkt ecosystem is expected to include federally regulated markets and warehousing along with merchant and consumer applications. The new company is already working with a number of organizations including Boston Consulting Group, Microsoft and Starbucks.
It would be appropriate to quote Maria Smith here, Starbucks partnership and payment strategy VP: «As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks».
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