Heading into the closing days of the month, it is a good time to take stock and look at the big picture view of the market. The crypto heavy weight, Bitcoin is largely unchanged despite the wild price swings that market participants were forced to endure over the course of August, but the rest of the top 10 coins are largely down anywhere from 10% to 20%. The biggest underperformer is Litecoin (LTC), down over 25%, as profit taking following the block reward halving in early August continues to take its toll on the cryptocurrency. At the start of the year, Litecoin’s hashrate was around 170T, then it rose all the way to 520T by mid-July, but since then, the hashrate has fallen to 320T. This alone suggests that the downslide could continue, especially if the market sentiment fails to recover and in turn support the broader market. In the DeFi market, the outflows from Maker look to be stabilising, the total value locked stands at around $260mln — having peaked at around $500mln and Compound continues to show growth — with over $100mln now locked. The contango delta has narrowed significantly from the levels observed earlier this summer, and though the pressure on retail lenders in the centralised arena may have subsided, it remains to be seen how long some of the ICO backed firms will be able to continue to provide such high rates for their users.
In other news Craig Wright must turn over half of his bitcoin holdings and intellectual property to the estate of Dave Kleiman, a judge ruled Monday. The ruling applies to holdings and IP from before 2014. Magistrate Judge Bruce Reinhart recommended that plaintiffs be awarded 50% of the Bitcoin that Wright held prior to Dec. 31, 2013, as well as 50% of the intellectual property that Wright owned prior to Dec. 31, 2013, according to an individual familiar with the case. And so the saga continues...
Elsewhere, Swiss financial authority FINMA has issued the first “banking and securities licenses” to two blockchain companies, SEBA Crypto AG and Sygnum AG. These are the first companies registered in Switzerland as broker-dealers with a specific blockchain focus. Over in Brazil, the Central Bank of Brazil has moved to classify bought or sold cryptocurrency assets according to International Monetary Fund (IMF) guidelines. Under the IMF standards, traded cryptocurrencies will be classified as non-financial products and as such, will be accounted as goods on the central bank’s balance sheet. A central bank balance sheet, just like a regular bank’s balance sheet, summarizes its financial position and is made up of assets, equity and liabilities.
Thank you for reading,
The BeQuant’s Analytics team