Continuing the trend in the previous weeks, the market was moving sideways during the last week. Bitcoin stayed between $6,300 and $6,500 and total cryptocurrency market cap stayed between $208 and $211 billion the entire time.
Meanwhile, the stock market exhibited a lot of volatility with the S&P500 dropping by 4% over the week. This makes the cryptocurrency market outperforming the stock market in terms of performance as well as volatility. Not such a bad place to be in.
The Tether FUD has subsided and USDT is trading at only a 0.2% discount. Bitcoin premium at Bitfinex is also lower than $100. With more and more stable coins backed by reputable companies coming in, the impact of Tether will be less significant as time goes on, which is a good direction.
While the overall market remaining flat, there were certain small cap altcoins that took off. It looks like some traders are ready to jump back into the market. We wouldn’t be surprised if the altcoin market makes a comeback in the near future, especially if Bitcoin remains at the $6,500 level.
One piece of news that we want to touch on is the introduction of Wrapped Bitcoin (WBC) on the Ethereum network.
Basically, how it works is that users send Bitcoin to a trusted custodian, the custodian would lock up the Bitcoin and issue an ERC-20 token (WBTC) to the user on the Ethereum blockchain. This way, every WBTC is fully backed by Bitcoin and redeemable from the custodian.
With the introduction of WBTC, smart contracts and dApps such as DEX, prediction markets, and token sales, can be denominated in Bitcoin instead of Ether and this opens up many potential use cases. While a trusted custodian is a potential central point of failure, we believe that it is a worthwhile tradeoff to enable the new use cases.
WBTC (Wrapped Bitcoin) Brings Bitcoin to Ethereum: https://www.businesswire.com/news/home/20181026005011/en/WBTC-Brings-Bitcoin-Ethereum
Singapore State Fund Temasek-backed Vertex invests in cryptocurrency exchange Binance: https://www.reuters.com/article/us-singapore-cryptocurrency-binance/temasek-backed-vertex-invests-in-cryptocurrency-exchange-binance-idUSKCN1MX0B2
Coinbase Adding USDC on Its Platform: https://blog.coinbase.com/coinbase-and-circle-announce-the-launch-of-usdc-a-digital-dollar-2cd6548d237
Chinese Arbitrator Reaffirms That Bitcoin Can Be Held, Privately Transferred as Property: https://cointelegraph.com/news/chinese-arbitrator-reaffirms-that-bitcoin-can-be-held-privately-transferred-as-property
Coinbase Cut Staffers in Customer Support, Compliance, and Fraud Departments: https://finance.yahoo.com/news/exclusive-coinbase-cuts-remote-support-staff-131702732.html
Bitfury Considers Listing for $3 – $5 Billion in Europe’s First Major Crypto IPO: https://cryptoslate.com/bitfury-considers-listing-for-3-5-billion-in-europes-first-major-crypto-ipo/
Visa CEO: Crypto is Not a Big Threat But if Needed, We Will Support it: https://www.ccn.com/visa-ceo-crypto-is-not-a-big-threat-but-if-needed-we-will-support-it/
Thoughts on Stable Coins and Tether: https://crushcrypto.com/thoughts-on-stable-coins-and-tether/
Comprehensive Overview of Cryptocurrency Regulations in Malta: https://crushcrypto.com/cryptocurrency-regulations-in-malta/
Crusher of the Month – AION – October 2018: https://crushcrypto.com/aion-crusher-october-18/
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.