Japanese consulting firm Nomura Research Institute, which is an affiliate of financial services giant Nomura Holdings, has launched a tradable cryptocurrency index in partnership with cryptocurrency investment solution provider Intelligence Unit. The index, which is meant for financial institutions, will track a basket of cryptocurrencies and can be traded in US dollars and yen. Though several financial companies have launched services for institutional investors, the inflow of money into the crypto space has been slow. Bitcoin options trading on Intercontinental Exchange’s digital asset platform Bakkt has been lackluster with nil volume reported for the past few days. Daily cryptocurrency market …

Investors are rushing into various safe haven assets as the coronavirus death toll in China rises and the virus spreads in various Asian countries, the US, parts of Europe and Australia. Usually, the initial reaction to any crisis is to dump all asset classes but gradually, the investors start to differentiate between asset classes as they analyze the effect the crisis can have on them. After the initial sell-off in Bitcoin and other cryptocurrencies due to the coronavirus scare, the crypto markets have stabilized and are rising once again. The total market capitalization of the crypto universe has risen from …

The coronavirus outbreak that started in China has gradually spread to a number of countries across the world. This is creating panic among investors as the death toll continues to rise. As a result, global equity markets and crude tumbled last week. Though cryptocurrencies also gave up some ground, they are currently attempting a relief rally and most major cryptocurrencies are trading in the green. Previously, such unforeseen events did not offer large investors a cost-effective way to hedge their crypto portfolio. However, with the recent launch of Bitcoin options, institutional investors can now protect their portfolios using various options …

The International Monetary Fund chief economist Gita Gopinath said in a panel discussion at the annual World Economic Forum (WEF) in Davos that Facebook’s Libra was a major trigger that made people reconsider the status of the dollar as the reserve currency of the world. Brazil's Economy Minister Paulo Guedes, who was also a part of the panel, said that “the Libra episode is just evoking a future digital currency.” In order to help policymakers understand the central bank digital currency (CBDC) better, the WEF in collaboration with some of the world's major central banks and experts from over 40 …

Recently Hiromi Yamaoka, the former head of payments and settlements at the Bank of Japan, said that Facebook’s Libra has forced central banks to research and consider issuing central bank digital currencies (CBDC). Currently China is leading the race in developing a CBDC but it appears that other nations are now attempting to play catch up. In a press release, the Bank of England said that the central banks of Canada, the United Kingdom, Japan, the European Union, Sweden and Switzerland have joined hands with the Bank for International Settlements (BIS) to form a working group tasked with researching CBDCs. …

The total market capitalization of the crypto space rallied from about $184 billion on Jan. 3 to a high of $250 billion on Jan. 19. That is a 35% gain within a short span of time. Usually, fast-paced rallies do not last long, hence, for the long-term health of the markets, it is better to have rallies with intermittent corrections. Bitcoin has been following the Stock-to-Flow model fairly accurately. The model’s creator, an analyst known as PlanB, believes that the price of Bitcoin is likely to average around $8,200 until the halving event in May of this year. Thereafter, the …

Most major cryptocurrencies have started the new year on a positive note. However, in the past 24 hours, the crypto markets are witnessing a sea of red. This shows that the rally has hit a roadblock, which could result in a minor correction or consolidation for the next few days. Such a move will be healthy for the crypto markets because it will shake out the weaker hands. The next dip will also give an idea about the cryptocurrencies that have bottomed out and have started a new uptrend. Acclaimed veteran trader Peter Brandt believes that Bitcoin has bottomed out …

The total crypto market capitalization has risen from about $190.5 billion at the start of the year to over $243 billion. That is a rise of about 27.55% within 17 days. This shows that the bulls are back in action. Another interesting thing to note is that the rally is led by altcoins, which are outperforming Bitcoin (BTC) by a huge margin. This shows that the current rally is more broad-based, announcing the arrival of altseason. Digital asset management firm Grayscale Investments reported that $225.5 million in investments flowed into its products in Q4 2019. That took the total investment …

The crypto space is making a comeback and the rally is being led by altcoins. While several altcoins might participate in the initial rally, we believe that the market will start differentiating between each cryptocurrency based on its fundamentals. Hence, traders should avoid buying the non-performers expecting a repeat of the previous bull market when every altcoin staged a parabolic rally. When compared against altcoins, Bitcoin (BTC) has been an underperformer over the past few days. Its dominance rate, which had risen above 69% on Jan. 8, dipped below 66% on Jan 15. On Jan. 14 Bitwise Asset Management withdrew …

Bitcoin has seen an uptick in volumes in the new year. A report by cryptocurrency market research firm Arcane Research shows that 7-day average daily trading volume has surged 126% in a week. Along with Bitcoin trading volume, the CME Bitcoin futures contract has also seen increased activity. The Bitcoin futures open interest has skyrocketed to a seven month high, which is only behind the peak seen at the end of June. A pick up in volume and open interest with rising prices or even if prices remain range-bound is usually a sign of accumulation by the stronger hands. This …

The CME Group will launch its Bitcoin options contract on Jan. 13. The analysts at JPMorgan Chase & Co. have spotted a 69% increase in open interest from year-end in CME’s existing Bitcoin futures contracts. They also noted that the number of large open-interest holders has picked up. This shows an increase in institutional interest before the launch of options trading. Nevertheless, as Bitcoin price action has been mixed during previous launches of such services, it is difficult to predict the move based on this event alone. Halving, however, is an important event and analysts at market research firm Fundstrat …

Safe haven assets were dumped on Jan. 8, on reports that the US-Iran conflict might not escalate to an all out war. Cryptocurrencies, which had surged alongside gold and oil with also retreated from two-month high. However, the positive sign is that most major cryptocurrencies have held their immediate support levels, which indicates buying on dips. This shows that the sentiment has changed from sell on rallies to buy on dips. With the news-based rally out of the way, the focus will again shift to the fundamentals. A new law governing cryptographic password management came into force in China on …