Watch | Brexit wishes come true, can BTC skyrocket?

Guide

At 11 pm on January 31, 2020, local time in Britain (7 am on February 1, Beijing time), the United Kingdom officially broke out of the European Union, putting an end to Britain ’s more than three years of Brexit and ending the 47-year EU Membership status. What impact will Brexit have on digital tokens and blockchain? Will BTC skyrocket all the way?

Summary

Topic: Brexit wishes come true, can BTC skyrocket? On January 29, the European Parliament approved the British "Brexit" agreement. The UK will begin an 11-month "Brexit transition period" from February 1. The UK and Europe need to work in new trade relations, defense cooperation, immigration, Negotiations on border control issues and end of legislation. Britain's departure from the European Union belongs to "agreement on Brexit", and its impact on itself and the global economy is one of the less important in the Bank of England's prediction of various possible scenarios. Despite the "orderly Brexit" of the United Kingdom, the European financial order may still be reshaped, and opportunities will emerge for digital tokens and the blockchain economy.

Quotes: The broader market is steadily rising and the downtrend is reversed . The ChaiNext Digital Asset 100 Index closed at 844.29 points this week, up 10.9%. The ChaiNext Digital Asset 100X Index closed at 2212.14 points, up 11.5%. The total market value of digital tokens this week was US $ 261.98 billion, an increase of US $ 24.59 billion from last week, or an increase of approximately 10.4%; the average daily turnover was US $ 106.15 billion, an increase of 5.0%. The current price of BTC is 9350.5 US dollars, with a weekly increase of 10.7%, and the average daily trading volume is 28.2 billion US dollars. The current price of ETH is $ 180.2, a weekly increase of 10.5%, and the average daily trading volume is $ 10.76 billion. The BTC balance of the exchange was 792,300, a decrease of 0.02 million from last week. The balance of ETH on the exchange was 10.022 million, and the selling pressure in the market was somewhat alleviated. In the BICS industry, the number of payment and settlement projects has grown rapidly.

Output and heat: BTC mining difficulty hits a new high. BTC ’s mining difficulty this week was 15.46T, which was raised by 0.69T this week; the average daily computing power was 111.6EH / s, which was 1.0EH / s higher than last week. ETH mining difficulty this week is 2057.8, which is 69.5 lower than last week, and the average daily computing power is 164.2 TH / S, which is 1.9 TH / S lower than last week.

Industry: The competition for digital token derivatives is fierce. Nasdaq is discussing the launch of BTC futures with partners; Tether is launching a new stable token backed by physical gold; the CFTC chairman said that Ethereum futures will be launched soon; Cambodia will issue a CBDC.

Risk warning: regulatory policy risks, market trend risks

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1 Topic: Brexit wishes come true, can BTC skyrocket?

At 11 pm on January 31, 2020, local time in Britain (7 am on February 1, Beijing time), the United Kingdom officially broke out of the European Union, putting an end to Britain ’s more than three years of Brexit and ending the 47-year EU Membership status. This controversy among public opinion, the intricate and ups and downs of the Brexit drama finally came to an end. On the eve of Brexit, the pound and gold rose, and BTC, which is known as "digital gold", is constantly breaking new highs for the year. What impact will Brexit have on digital tokens and blockchain? Will BTC skyrocket all the way? 1.1 There is no turning back for Brexit, stability is guaranteed during the 11-month transition period

British Prime Minister Johnson issued a statement saying that Brexit is "a freshman in Britain", "for many people, this is an incredible and hopeful moment, and they think that this moment will never come", "not the end, but the starting point ". In many places in the UK, Brexit supporters set off fireworks. The cheerful Brexit leader Faraki said, "This is the greatest moment in the modern history of a great country." "We have passed the irreversible barrier, and we have never Don't go back. "

On the other hand, I hope that the British people who remain in the EU will "mourn" this night with a solemn candlelight vigil. A video was projected on the white cliffs off the coast of Dover, facing the European continent. The video was a WWII veteran's nostalgia for the European Union. The video ended with the stars on the EU flag slowly disappearing, leaving only a star symbolizing Britain. And accompanied by the text: "This is our star, take care of it for us."

On January 29, the European Parliament approved the British "Brexit" agreement. The UK will begin an 11-month "Brexit transition period" from February 1. The UK and Europe need to work in new trade relations, defense cooperation, immigration, Negotiations on border control issues and end of legislation. Britain has embarked on a very different path, withdrawing from a political and legal framework that has been in use for forty years.

1.2 European financial big shuffle, the blockchain stands out?

The event of Britain's final Brexit spurred less-than-expected stimulus to safe-haven assets such as BTC and gold. The impact of Brexit on digital tokens such as BTC has two aspects. One is that the economic growth of the United Kingdom and the EU member states has fallen, and the devaluation of the currency has caused investors to flood into the digital token market. The regulatory framework for securities and the establishment of a new regulatory system will increase transaction friction costs for UK digital token investors.

Britain's departure from the European Union belongs to "agreement on Brexit", which has less impact on itself and the global economy. The price of the British pound against the US dollar rose by 100 basis points after the announcement of Brexit. The Bank of England has analysed the impact of Brexit on the British economy in two scenarios, including: 1. The UK maintains an economic partnership with the EU; 2. No agreement and no transitional Brexit. The Bank of England believes that Brexit will affect residents' income and consumption, and will be restrained by economic uncertainty and corporate investment. The Bank of England predicts that in the absence of an agreement on Brexit, the UK's gross domestic product (GDP) will fall by 5.5% to 8% compared to the end of 2018, and its impact will be comparable to the economic crisis; while maintaining economic partnership with the EU, UK GDP will change by approximately -0.75% to 1.3% over the next five years.

Despite the "orderly Brexit" of the United Kingdom, the European financial order may still be reshaped, and opportunities will emerge for digital tokens and the blockchain economy.

First, in the process of Brexit, in order to deal with the risk of a no-deal Brexit, most foreign financial institutions that will be established in London will follow the principle of "highest efficiency and lowest cost" and take precautionary measures to transfer risks. According to European Central Bank statistics, as of October 2019, 24 banks, including Citibank, Morgan Stanley, JP Morgan Chase, and Goldman Sachs Group, have transferred related businesses from London to the Eurozone, involving assets of up to 1.3 trillion euros.

Second, European financial regulation may be complicated. Once the United Kingdom has no agreement to leave the European Union, it means that financial supervision and laws between the United Kingdom and the European Union will undergo major changes, and the continuity of a large number of financial business contracts will be affected. Major European cities may start a new round of competition for financial centers, and financial markets will inevitably fluctuate sharply.

In this context, blockchain technology, with its distributed, high-efficiency, low-cost, and non-tamperable characteristics, will replace traditional financial institutions in the fields of international trade, bond issuance, and corporate financing, and will emerge. BTC, as "digital gold", will attract a portion of institutional investors' hedge funds.

2 Quotes: Steady upward trend, downtrend will reverse

2.1 Overall market: BTC is steadily rising, and the concept of production reduction continues to be strong

The ChaiNext Digital Asset 100 Index closed at 844.29 points this week, up 10.9%. The ChaiNext Digital Asset 100X (no BTC) index closed at 2212.14 points, up 11.5%. BTC is rising steadily, and the downward trend since July 2019 will reverse.

The total market value of digital tokens this week was US $ 261.98 billion, an increase of US $ 24.59 billion from last week, or an increase of approximately 10.4%. The average daily volume of digital tokens this week was 106.15 billion US dollars, up 5.0% from last week, and the average daily turnover rate was 41.5%, an increase of 0.1% from last week. After BTC broke through 9,000 USD, it moved along the moving average line, and the mainstream moving average line was long.

The BTC balance of the exchange this week was 792,300, a decrease of 0.02 million from last week. The exchange's ETH balance was 10.022 million, a small change from last week. The balance of the exchange remained stable, and the selling pressure in the market was somewhat alleviated.
The market value of USDT is USD 4.645 billion, which is USD 10.78 million less than last week. The USDT over-the-counter transaction price rose to 6.98 yuan, a certain premium appeared, and the willingness to enter the OTC market was strong.
2.2 Core Token: Linking BTC Upstream
BTC's current price is 9350.5 US dollars, with a weekly increase of 10.7 % and a monthly increase of 29.9% . The average daily turnover of BTC this week was $ 28.2 billion, with an average daily turnover rate of 17.0%. BTC trading volume and price rebounded at the same time, driving the overall strength of the market. The current price of ETH is $ 180.2, with a weekly increase of 10.5% and a monthly increase of 37.7%. The average daily volume of ETH this week was US $ 10.76 billion, with an average daily turnover rate of 56.4%. Most of the main circulation certificates are relatively strong.

The current price of EOS is $ 4.14 , with a weekly increase of 13.7% and a monthly increase of 59.2% . The daily average volume of EOS this week was US $ 3.41 billion, with an average daily turnover rate of 89.8%. EOS changed hands fully, and there is still room for upside. BCH's current price is $ 375.4, with a weekly increase of 17.5% and a monthly increase of 83.7%. The daily average volume of BCH this week was US $ 3.59 billion, with an average daily turnover rate of 53.6%. BCH, as one of the first batch of tokens to reduce production before BTC, performed strongly.

The main token volatility continued to rise this week, and the market was more active.

2.3 BICS industry: the number of payment and settlement projects has increased
Among the top five BICS (Blockchain Industry Classification Standard) secondary industries in terms of market value, the market share of public services and professional services increased at a higher rate, and the market share of retail e-commerce and healthcare declined obvious.

The BICS secondary industries that saw a significant increase in the number of tokens this week were payment settlement (increased 3) and media content (increased 2).

2.4 Market View: Brexit Increases Digital Token Attraction
After Brexit, the uncertainty of the global economic outlook has further increased, and coupled with the turbulence in the international situation, financial markets are inevitably subject to dramatic fluctuations. In this context, blockchain technology, with its distributed, high-efficiency, low-cost, and non-tamperable characteristics, will replace traditional financial institutions in the fields of international trade, bond issuance, and corporate financing, and will emerge. BTC, as "digital gold", will attract a portion of institutional investors' hedge funds. In the long run, there is a large imagination for high-quality tokens. The halving market will start in 2020, and callbacks are rare opportunities to increase positions. Investors can make asset allocation based on their own circumstances.

3 Output and Heat: BTC Difficulty Hits a New High

BTC mining difficulty reached a new high. BTC ’s mining difficulty this week was 15.46T, which was raised by 0.69T this week; the average daily computing power was 111.6EH / s, which was 1.0EH / s higher than last week. ETH mining difficulty this week is 2057.8, which is 69.5 lower than last week, and the average daily computing power is 164.2 TH / S, which is 1.9 TH / S lower than last week.

This week, Google Trends calculated that the search term for Bitcoin terms was 10, and the search term for Ethereum terms was 8, which was slightly lower than last week.

4 industry news : Digital token derivatives are fierce

4.1 NASDAQ is discussing the launch of BTC futures with its partners. Nasdaq CEO Adena Friedman said in an interview with Bloomberg News that he is currently discussing the launch of BTC futures with an anonymous partner. Two factors may affect the launch of BTC futures products. First, the company wants to ensure that it can bring a product different from its competitors to the market. Secondly, I want to ensure that I have the appropriate risk management foundation to link with digital tokens in the future.

4.2 Tether is launching a new stable token backed by physical gold

Tether is launching a new token, Tether Gold, backed by physical gold. Tether said in a Thursday press release that the new stablecoin represents one troy ounce of physical gold on a specific gold bar. The new stablecoin will be issued on ETH and TRON, issuing ERC-20 and TRC20 tokens, respectively.

4.3 CFTC Chairman Says Ethereum Futures Are Coming Soon

US Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert reiterated in an interview with Bloomberg that Ethereum (ETH) futures are in the pipeline. As early as October last year, Tarbert stated that Ethereum futures may start trading sometime in 2020, and also said that the CFTC is willing to give a green light to new products.

4.4 Cambodia will issue CBDC, has entered the final deployment stage

The National Bank of Cambodia (NBC) plans to launch the Central Bank Digital Currency (CBDC). NBC Director-General Chea Serey said that the Cambodian Central Bank is currently developing the Cambodian National Payment Portal and using it as a blockchain-based peer-to-peer platform, issuing specially designed Digital tokens. The project, called Bakong, was designed by Japanese blockchain company Soramitsu. Soramitsu CEO Makoto Takemiya said that CBDC is just a tokenized version of the US dollar and Cambodian fiat riel in the NBC reserve. Users will be able to set up a Bakong wallet, which will be automatically linked to the user's bank account, allowing easy real-time exchange of fiat currency into CBDC. The project is currently in the final stages of deployment and the possibility of using CBDC for speculation is zero.