Crypto market update 2nd week August 2020

We are facing another good week for the cryptocurrencies, especially for the BTC, whose value continued to rise despite the great increase in the last week of July and first week of August. The trend remains upward for most cryptos according to volatility indices and the correlation with the S&P 500 index although a fall close to $10,000 support line is expected before another new rebound.

In the experts’ opinion, the BTC price beyond the barrier of 11,000 (on August 2nd it reaches a peak of 12,000) and its stabilization around this price makes us think that we are facing the initial phase of a long upward phase popularly called "bullish run". Crypto derivatives and ETFs

Source: Mind Capital

This upwards trend of cryptocurrency values is leading to an increase in general interest in them as more and more traditional finance professionals are entering the crypto market, by creating derivative products referred to cryptocurrencies, mainly to Bitcoin and Etherium.

The top crypto-derivative product is "BTC Options" (with better performance than BTC futures and BTC ETFs), and within these options more put options have been sold than call options, indicating the above-mentioned upward trend. This suggests greater optimism about the BTC price expressed by traditional investors who do not invest directly in cryptocurrencies.

Respecting the first altcoin, Etherium was able to reach an all-time high in the last two years, exceeding $400 on August 2, and pulling the classic altcoin market upwards  thanks to decentralized finance - DeFi  and the early arrival the new version ETH 2.0.

Etherium derivatives are also performing well and it is possible that one of Grayscale's ETH ETFs called "Grayscale Etherium Trust" could be the first to be approved by the American SEC.

However, there is a negative counterpart to this upward euphoria in the crypto market, as not only the BTC and ETH are doing very well, but many other altcoins as we have been seeing in the last few weeks.

As a negative counterpart, we can highlight the following cases of hacking that have occurred in recent:

  • The theft of $1.3 million from 2gether, cleaning out their crypto wallets, and leaving balances in fiat currency. The 2gether exchange platform has offered their clients its own token to replace the stolen funds, a clearly insufficient measure after this security breach.
  • Hacking into the twitter accounts of some celebrity profiles, such as Elon Musk, Joe Biden and Bill Gates, through "rasomware" attacks, in which a ransom is demanded using BTC so that their owners can recover their accounts. These types of attacks are unfortunately becoming very usual.
  • Hacking into youtube channels, using phishing techniques against the owners of the channels, in which bitcoin gifts are offered in exchange for deposits of other amounts of bitcoins.
  • Ransomware attack on the multinational travel company CWT, for which they asked for 10 million dollars in BTC to restore the data. In the end, after negotiations, 4.5 million was paid and the hackers offered to show the company how they had managed to kidnap thousands of their computers in order to solve this vulnerability, something that is still surprising.
  • 51% attack against Etherium Classic (ETC) cryptocurrency, which consists of a group of miners who have the majority of the hash rate that manipulate the blockchain to have an additional gain by spending twice the same amount of cryptocurrency, this is called "double spent", which is something that it is intended to avoid in every cryptocurrency.

Regarding the top 5 cryptocurrencies of the last few days we have the following showed in the table below.

Source: Criptonoticias
  • On top of the table above is Zcash (ZEC) which achieved a revaluation of over 23%, perhaps due to a new update (3.1.0) on 5 August to implement new consensus rules for its Zcash Development Fund.
  • Secondly, the altcoin NEM (XEM), reached a maximum of 0.065 dollars, with an average growth of 18% in the last week, possibly because it was listed by the Japan exchange called BitFlyer, so this crypto project and its community can have a great expansion not only in Japan but also in other Asian countries.
  • Thirdly, we have DASH, which has properly upgraded the reward of its miners and launched a Visa card in Mexico, firm to the mission of this crypto to become a real digital money with many technological advantages over the others. It had a growth of 15% due to the above factors and the increase in computing power donated by the community to finance medical research to treat the coronavirus.
  • Fourth, the crypto Grin increased its value almost 14%, reaching a peak of $0.55, possibly because of the technological partnership with the NERVOS ecosystem to make the two networks work together.
  • And in the fifth place we have the crypto Ripple (XRP), thanks to Grayscale's ETFs with investments in Ripple to increase over 13% and also due to the increase in the payment network with Ripple allowing more merchants to accept Ripple as payment. Cumulatively, Ripple sales increased by 1,700% in Q2 2020.

"In summary, this last week we were facing bullish run prices, and crypto and data hacking affecting different platforms as two elements that have characterized the last convulsive and contradictory days of last week in the crypto markets".