Australian Crypto Roundup: Bitcoin correction sees short-term hodlers take profit

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3 minute read

Weekly Market Update
25 - 29/10/21

Bitcoin dips below AU$ 80,000 as ETF enthusiasm wanes, while Ether holds strong in anticipation of Ethereum 2.0.

  • TLDR - A snapshot of the week
  • BTC is down 0.7% (US$ 61,592 and AU$ 82,122)
  • ETH is up 5.6% (US$ 4,375 and AU$ 5912)
  • Ethereum bursts into new all-time high
  • Crypto mining ETF launches in Australia
  • Aussie businessman takes “crypto fight” to the Big 4
  • Amazon Web sets it sights on first billion blockchain users
  • Billion-dollar hedge funds invests $2.6 billion into crypto

Crypto mining ETF launches in Australia

  • Following the strong debut of the first Bitcoin futures Exchange Traded Fund (ETF) in the US earlier this month, Australian hedge fund Cosmos Asset Management has launched a new digital mining fund on the CHI-X.
  • The Cosmos Digital Miners (DIGA) launched on Thursday 28th of October, with the aim to give Australian investors access to global leaders in digital asset mining and infrastructure
  • Chi-X, a local securities and derivatives exchange, is an alternative and current competitor to the Australian Securities Exchange (ASX)
  • Using their custom designed Index the Global Digital Miners Index, the DIGA includes global listed companies who generate 80% of their revenue from digital asset mining and infrastructure
  • The index is maintained and rebalanced by the S&P Dow Jones Indices, with notable additions to the fund include:
    - Marathon Digital
    - Riot Blockchain
    - Hive Blockchain Technologies
    - Hut 8 Mining Corp
  • Cosmos Asset Management chief executive Dan Annan has expressed benefits of offering the DIGA on an Australian regulated exchange like the CHI-X, stating:
  • “It means investors do not have to directly hold cryptocurrencies and, importantly, provides Australians with the ability to access the potential upside of the next wave of financial market innovation."

Aussie crypto businessman takes de-banking fight to the Big 4 banks

  • Canberra-based bitcoin trader and business owner Allan Flynn is awaiting the verdict of a recent tribunal in the ACT after alleging acts of de-banking by Westpac and ANZ.
  • The case in the ACT Civil and & Administration Tribunal, concerns the decision of one of the country’s biggest banks over their motion to stop doing business with him because he operated a cryptocurrency trading platform - Canberra Bitcoin
  • Flynn claims that while Canberra Bitcoin was operational between July 2017 and December 2019, the company was debanked over 20 times, often without warning.
  • Though two years into a lengthy legal journey, Flynn has optimistic expectations for the final verdict, with ANZ another of Australia’s Big 4 banks, settling with Flynn for the same charges
  • The de-banking of crypto-related business is a pressing issue surrounding the Australian community, as industry leaders have expressed frustration with being unfairly targeted by banks
  • Despite the Australian federal government expressing interest in creating a competitive and sustainable industry for digital assets, the banking sector has stayed resistant
  • The Australia Banking Association has informed the Senate that it is concerned digital currency providers “risk becoming a virtual haven for financial transactions of criminals and terrorists.”
  • As the Australian crypto industry waits eagerly for a final verdict, many hope a positive verdict will help engage the de-banking concerns raised in the Senate Select Committee’s report of the future of the digital asset industry in Australia
  • Amazon aims to onboard the first billion blockchain users
    Amazon Web Services (AWS), the cloud computing department of billionaire Jeff Bezos’ e-commerce company Amazon intends to onboard the first billion blockchain users through their streamlined, user-friendly platform
  • With AWS, Amazon has created a tool for users to create and manage scalable blockchain networks, with the open source frameworks Hyperledger Fabric and Ethereum
  • Senior blockchain architect Emile Baizel at AWS has stated the company hopes a “user-rich experience” offered through the AWS platform will provide a less intimidating path to blockchain development
  • “Currently, there are numerous steps users need to face and having a simplified and well-defined process will help them get into the blockchain game easier”
  • The size of global blockchain is projected to grow to roughly US$ 39.7 billion by 2025, from US$ 3 billion in 2020. Amazon expects this to be fueled by the increased demand for simplified business processes and supply chain management apps powered by blockchain technology
  • With a range of other innovative tech spaces Amazon has invested in, the move into blockchain is expected to enhance the company’s existing impressive standing in e-commerce

Market Sentiment

  • After a mid-week correction following last week’s all-time high, Bitcoin has climbed back above AU$ 80,000 as Ethereum’s impending ETH 2.0 update has kept market sentiment positive.
  • Extreme optimism, leverage, and profit-taking in the market has been pointed to as the possible reasons for BTC’s latest pullback in price
  • Blockchain data has shown short-term holders have started to take profits after the ETF-driven price rally, which could suggest market participants are unsure about bitcoin’s short-term price direction
  • While Bitcoin’s climb back over AU$ 80,000 has squashed the bearish head and shoulders figures on Wenesday’s pullback, Bitcoins price is not yet secure
  • BTC’s price needs to keep moving higher to restore bullish bias in the market, while a renewed drop would raise the risk of a deeper decline
  • The support level for BTC, which is the level most buyers tend to invest, is currently around AU$ 70,700
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Team Luno

On our way to the moon, we write about all things crypto. And don’t forget we’re humans too. Our blog conveys the views of Luno and the many unique opinions and characters within our team. We’ll never provide you with financial advice, and we urge you to conduct your own research before purchasing or trading any cryptocurrencies. It’s a brave new world out there, and the market can be volatile at times, so never trade with funds you can’t afford to lose. Want to let us know how much you love our blog? Tweet us @LunoGlobal.

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