Cryptocurrencies have been the best-performing assets in the financial market this year. Litecoin, Bitcoin and Ethereum have gained by 138%, 77% and 26% respectively. Gold and S&P 500 in comparison have gained by 16% and 20% respectively this year. The gains seen this year are in contrast to the significant losses that happened in 2018. In October, the price of Bitcoin rose by 10% after the sharp declines experienced in the previous three months.
November will be a significant month for Bitcoin and other cryptocurrencies. The market will scrutinise the documents released by Canaan, as the company prepares for its IPO. Canaan is the second-biggest Bitcoin mining machine maker. The company has already filed papers with the SEC and is offering its size at $400 million. The company attempted going public in Hong Kong in 2018 but was rebuffed by the exchange, which considers crypto IPOs as being premature. In the latest SEC filing, the company said that it lost $48.2 million in the first half of the year.
The market will also focus on China, which is expected to launch its digital currency during the month. The People’s Bank of China (PBOC) has been building a digital currency as it hopes to ease cash transfers. The currency will be a digital version of the yuan. Critics say that the currency will lead to increased surveillance by the Chinese government. The country accelerated development of the currency after Facebook unveiled its desire to launch Libra. In a statement a week ago, President Xi Jinping hailed blockchain and suggested that China should seize the moment. This led to Bitcoin’s price to jump by 15%.
Traders will also focus on Libra, the cryptocurrency project that is being built by Facebook. In October, Libra was in the news as some of its biggest backers like Visa, Mastercard, and PayPal withdrew from the association. These companies are afraid of the spotlight that Libra has gained from global regulators and politicians. European leaders like the French finance minister have warned that they will not allow Libra to take over from the euro. In testimony to Congress, Mark Zuckerberg urged American politicians to support Libra because other countries like China would be winners if Libra was left to die.
The market will also be looking at the crypto-loan market. In a recent article, Bloomberg wrote that the loan market is worth more than $5 billion. The industry began less than two years ago and accelerated in 2018, during the big crash. Holders who were afraid of selling their Bitcoins loaned them out to people with the goal of earning interest. Other people borrowed money and used their coins as collateral. There are concerns that the new market could pose significant risks in the market.
There will be several major crypto events during November. In Athens, enthusiasts will gather for the Decentralized event on October 30 to November 1. This is one of the fastest-growing crypto-related events. Charlotte Day, the creative director of Contentworks will be a speaker at the event. In Mexico City, Meridian, the first Stellar Conference will take place. This event will target people interested in the Stellar industry. Other main events to watch will be Convergence in Spain, The Capital in Singapore, and Indonesia Blockchain Week.
At Contentworks, our team of financial professionals closely follows market movements for FX, Crypto and other tradable instruments. We are proud to serve some of the biggest crypto and fintech companies in the world by delivering high-impact articles, videos, PRs and white papers.
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