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As Crypto Winter Lingers On, Institutions & Startups Prepare For Spring

As Crypto Winter Lingers On, Institutions & Startups Prepare For Spring
By Decentrl.Agency • Issue #9 • View online

Market Watch:
Not much has moved since our last market watch, typical of the low volatility throws in the last stages of a bear market. Interest in trading Bitcoin has dried up, and the price action we’ve been left with is a slow bleed out.
XBT/USD
XBT/USD
Bitcoin has drifted below our tentative ~$3400 support. It looks all but set to fall from here to re-test the break out level from mid December. If this support near $3200 holds, a double bottom set up can develop. Else, we look to $2800 and $2500 as our supports on a break of new lows.
Bitcoin is technically bearish. For traders, a long position is counter trend and therefore higher risk. “Knife catching” can be quite profitable, but for those with less risk appetite, it is a better idea to wait until the trend shifts. Currently ~$3520 is identified as a key horizontal resistance to break before we can anticipate further bullish price action.
Ethereum is behaving quite similarly to Bitcoin. Continuously rejected by trendline resistance for the past several weeks, it’s currently on its last legs.
ETH/USD
ETH/USD
Below, we see the low volume gap described in previous market watch near $99, it’s not unlikely this price will be filled. There is a set of three different supports that ETH may catch and hold before a fall to new lows.
In the event we do see new lows, ETH may dive as far as the $50 range.
News:
Facebook makes its first acquisition in blockchain by hiring the team behind Chainspace, a blockchain startup focused on decentralized smart contracts and founded by researchers from University College London. This is not the first step the social media giant has made toward blockchain; Facebook executive David Marcus, former President of PayPal, has headed Facebook’s blockchain group since last year.
Winklevoss Exchange Gemini has been gaining a reputation for shutting down accounts trying to bulk redeem their stablecoin, the GUSD. Two OTC trading desks, one based in Latin America and the other in the U.S., tried to redeem millions in GUSD for fiat and the former was warned by Gemini staff that doing so would harm the stablecoin. The U.S. based desk was able to redeem his GUSD, but not without their account being shut down within days, leaving many worried that Gemini’s perceived attempt to maintain stablecoin market share is not a good omen for their GUSD holdings.
In an effort to transparently evaluate worker conditions, New America, ConsenSys, and Harvard T.H. Chan School of Public Health developed a blockchain-based working condition evaluation system over the course of two years. Based on H.T.H.C.S.P.H.’s Sustainability and Health Initiative for NetPositive Enterprise (SHINE), the scalable, anonymous survey that will track workers’ well-being will be piloted in three factories in Mexico on 5,000 employees. “For the last 25 years, work in supply chains has been monitored mainly by audits. We know from research and serious traumatic events that this system alone is not effective. A distributed system of inquiry on the blockchain that goes right to the source [workers] offers a new solution,” said Dr. Eileen McNeely, Director of SHINE at the H.T.H.C.S.P.H.
New York based market making trading firm Genesis Capital reported that it had originated over $1 billion in loans over the last 10 months, over 500 million of which were in digital assets like Ethereum and Bitcoin, with a 100% increase in Q4 2018. “November and December were the most active months to date as we saw new hedge funds and trading firms utilizing ‘spot’ borrow,” said the firm.
The faltering Venezuelan government was recently thrown further off-kilter by U.S. leadership successfully lobbying the U.K. to deny Venezuela’s attempt to withdraw $1.2 billion in gold from the Bank of England.
Digital asset custodian BitGo has launched “Wrapped Bitcoin”, an ERC20 token backed 1:1 with Bitcoin. WBTC enters the markets with 26 partners, 15 DOA members, and its reserves can be verified through block explorers. There are currently 72.4214 WBTC.
During the U.S. government shutdown, CBOE Global Markets withdrew their application for the much anticipated VanEck Bitcoin ETF, which would have been automatically approved if the shutdown continued. Quickly announcing that they would refile once the SEC was back at work, they did so at the end of January, but not without adding another 40 pages to the application.
Decentrl Co-Founder & Blockchain For Good’s Founder Cecile Baird will be a panelist at Berkeley’s “Blockchain For Social Impact” Feb. 6th, speaking on how we can build a Web 3.0 to re-engineer the internet with blockchain technology according to our new understanding of how society and technology interacts with it.
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Decentrl.Agency

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