Your Cryptocurrency Newsletter for 28 July, 2020

If you are interested in cryptocurrencies, this newsletter is for you. [img] [img]( [FeedBinary Newsletter]( [Chainalysis Launches ‘Market Intel’ for Cryptocurrency Insights]( Leveraging its various data repositories, the new website caters to asset managers and regulators. Blockchain intelligence platform Chainalysis has launched a new data-driven portal that offers comprehensive tracking of cryptocurrencies worldwide under the ‘Market Intel’ brand name. Leveraging its various data repositories, the new website, which caters to asset managers and regulators, will be publishing live data and insights on cryptocurrency use, and “the health and growth of cryptocurrency markets.” Chainalysis’s team of data scientists and programmers are leveraging a wide range of quantitative data sources, including cryptocurrency exchanges and blockchain data sources, clarify and present the view of the cryptocurrency and blockchain ecosystem. Chainalysis’ compliance software can help both crypto firms and law enforcement agencies detect suspicious activity in order to battle any related criminal activity. It uses pattern recognition, algorithms, and millions of open source references to “identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity,” the company says. The company says it believes that providing data insights into cryptocurrency activity will help government agencies, exchanges, and financial institutions to fuel the industry’s growth. “Chainalysis was founded on the belief that financial institutions and governments need a trusted data platform to become comfortable with cryptocurrency and ultimately enable its mainstream adoption. By providing metrics and context for cryptocurrency activity, we’re empowering asset managers and regulators to leverage the transparency of blockchains to make data-driven decisions about why and how to invest in cryptocurrencies and ensure the markets function safely and efficiently,” said Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis. “Cryptocurrency is poised to become a mainstream asset class, but asset managers and regulators need data and insight into what’s actually happening in the markets to meaningfully invest and effectively oversee the space,” said Philip Gradwell, Chief Economist, Chainalysis. Chainalysis has recently raised an additional $13 million to expand the company’s Series B round to $49 million. Behind the latest cash injection were Ribbit Capital and Sound Ventures. It has initially nabbed a $30 million investment in February 2019, led by venture firm Accel, a growth-stage venture capital firm, then raised a further $6 million from two major Japanese investors in April. The 75-person startup, which has offices in New York, Washington DC, and Copenhagen, provides financial institutions, cryptocurrency exchanges and law enforcement with a platform to detect and investigate cryptocurrency money laundering, fraud, and compliance violations. Chainalysis is also selling its bitcoin-tracing technology and compliance software to banks and brokers to monitor and link digital identities to cryptocurrencies. “There is a clear gap when it comes to robust institutional grade data analysis and market insights. In a recent survey of institutional investors, Fidelity Digital Assets found that the third-ranked obstacle to investment, after price volatility and market manipulation concerns, is a lack of data to provide insight into the health and growth of digital assets and networks,” said Chris Tyrer, Head of Fidelity Digital Assets Europe. [Read More Newsletter]( [Read Full Story]( ------------------ [The King Is Back: Altcoins Retrace As Bitcoin Jumps To Almost $11,000]( For the first time in approximately a year, Bitcoin neared $11,000 on leading cryptocurrency exchanges. According to data from CoinGecko, the asset is up 10.1% in the past 24 hours — the best one-day performance in many months. The recent strength in the Bitcoin market can be juxtaposed to the relatively poor performance of altcoins—that’s to say, cryptocurrencies that aren’t BTC. Data from CoinGecko indicates that most altcoins are up against the dollar over the past 24 hours but down against Bitcoin. Take XRP as an example: the fourth-largest cryptocurrency has gained 3.2% against the dollar in the past day, though is down 5.9% against Bitcoin. Or consider Chainlink—one of the crypto market’s hottest properties over recent months—which is actually down 4.0% in the past 24 hours. This is not surprising: when Bitcoin trends, altcoins have been known to underperform. Luke Martin, a cryptocurrency trader featured on CNN, commented: “This is the first serious alt pullback we’ve had in a while but some things never change: $BTC rips -> alts retrace.” With Bitcoin breaking past crucial resistance levels identified by Wall Street and crypto analysts alike, altcoins may continue to underperform until BTC settles down. Prior to this latest leg higher in the price of Bitcoin, altcoins were in control of the cryptocurrency market. From June 1 to the local highs for altcoins on July 26, Bitcoin dominance—the percentage of the cryptocurrency market comprised of BTC—fell from 66.5% to 61.6%. This is a large move for a market with an aggregate market capitalization in the hundreds of billions. Mohit Sorou[t](, a founding partner of Bitazu Capital, said that the strength in altcoins was a byproduct of Bitcoin’s lack of volatility during most of June and in the first half of July: “Most altcoin cycles are centered around Bitcoin volatility. When it dries up, no one wants to trade BTC. This leads to a large uptick in speculation on alts, driving their prices up—typically alts with strong narratives & large scale memetic behavior get the most volumes.” This was best exemplified by coins pertaining to decentralized finance (”DeFi”), which experienced parabolic performances throughout June and July. This was due to an uptick in innovation in this market sector, coupled with liquidity mining incentives that promoted what has been dubbed “yield farming.” With Bitcoin now volatile as it experiences a major breakout, altcoins are relatively underperforming. As the chart above indicates, BTC dominance has surged two percent in the past 36 hours. Author of “An Altcoin Trader’s Handbook,” Nik Patel, said after Bitcoin rallied to $11,000 that he wouldn’t be surprised to see Bitcoin dominance continue to trend higher: “Wouldn’t surprise me to see dominance now rise until BTC all-time highs (pending a confirmed Weekly breakout above $10,600) > break $20k and alts find another bottom (like Nov/Dec 2016) > they rally concurrently like March-June 2017.” A Bitcoin-Centric Market In the ongoing macroeconomic environment, many traders agree that Bitcoin is the cryptocurrency to watch. Paul Tudor Jones, a billionaire hedge fund manager, commented in a May research note that he thinks Bitcoin has won the “crypto war of 2017 as the clear winner with a market cap 10x that of its closest competitor.” The investor added that in a world with the “most unorthodox economic policies in modern history,” Bitcoin becomes the “fastest horse in the race.” This is a sentiment that his been corroborated by Bloomberg Intelligence senior commodities analyst Mike McGlone, who wrote in a July research note that market factors are naturally favoring Bitcoin’s growth over that of altcoins: “Too much supply and ease of entry should continue to weigh on most alt–coins, still in an extended hangover from the parabolic gains to the 2017-18 peak. It’s the increasing differentiation, maturation and more widespread adoption that favors Bitcoin, which is becoming more of a gold-like store of value.” [Read Full Newsletter Here]( [Read Full Story]( ------------------ [fb](  [tw]( ------------------ You received this email because you operate or create content for a website/service and based on your website it seemed like this could be important information to you and your users. Want to change how you receive these emails? [Update your preferences]( or [Unsubscribe](