Ethereum

Polkadot

Avalanche

 is currently at 25/100 in the Extreme Fear zone, down 2 points from this time last week. The index reached a high of 29 on Wednesday and a low of 25 today.

Global financial markets closed higher at the end of last week’s trade. Investors appeared to be frontrunning probabilities of the Fed tightening cycle ending in the foreseeable future. Conditions looked to be easing faster than expected and short-term sentiment was bolstered by anticipation of a possible pivot in 2023. As the new week progressed and a robust calendar of economic activity eventuated, the previous week’s strength softened.

According to Jurrien Timmer, Director of Global Macro at Fidelity Investments, “It seems the stock market was rallying on two very big assumptions: the expectation that the yield curve is wrong and that earnings will hold up in 2023, and the expectation that the Fed will quickly return to a neutral policy of 3-3.5% after reaching a terminal rate of 5%. In other words, the market is betting on a soft landing.”

US markets held firm on Monday but declined as the week progressed in response to growing concern of a global economic downturn. The US economy showed signs of strength, adding 263,000 jobs in November, which was down from October, but exceeded expectations overall. The Federal Reserve signaled a 0.5% increase in next week’s rate decision which the market priced in accordingly.

The short-lived relief that markets experienced from easing Covid restrictions in China was quickly counteracted by general concern regarding the implications of higher interest rates and their impact on global economies.

In Australia, the 

 target by 0.25% to 3.1% and increased the interest rate on exchange settlement balances by 0.25% to 3.0%. According to statements by RBA governor, Philip Lowe, “Inflation in Australia is too high, at 6.9% over the year to October. Global factors explain much of this high inflation, but strong domestic demand relative to the ability of the economy to meet that demand is also playing a role. A further increase in inflation is expected over the months ahead, with inflation forecast to peak at around 8% over the year to the December quarter. Inflation is then expected to decline next year due to the ongoing resolution of global supply-side problems, recent declines in some commodity prices and slower growth in demand.”

In the week ahead, the US Federal Reserve, the Bank of England, and the European Central Bank are all scheduled to release rate decisions.

The digital asset majors showed early signs of strength as buyers defended local lows and price action trended to the upside.

Following a turbulent few weeks, Bitcoin gained support and pressed to local range highs, trading above the US$17k level. Similarly, Ether saw increased bids and trended higher, attempting to hold above range highs around US$1.3k. On the desk, cash-heavy positioning rotated into direct exposure as market participants saw opportunity across the board and allocated accordingly. We saw higher volumes of stablecoins rotating into AUD while traders prepared for increased volatility leading into the year's end.

At the time of writing, Bitcoin was down 1.5% on the week, trading at US$16,850 and Ether was down 3.5% at US$1,235.

Bitcoin dominance by market capitalisation traded 0.67% higher, positioning Bitcoin at 40.7% dominance by market cap. With total crypto market cap trading 2.1% lower on the week thus far, we’re now seeing US$797.3 billion in the crypto markets.


Ethereum co-founder, Vitalik Buterin published an article which addressed areas he’s most excited about in the 

.

In his commentary, Buterin covered a variety of key concepts, including cryptocurrency payments, stablecoins, DeFi, digital identity, DAOs, and hybrid applications. When addressing how his thinking has changed over time about the state of Ethereum, he stated, “my excitement about Ethereum is now no longer based in the potential for undiscovered unknowns, but rather in a few specific categories of applications that are proving themselves already and are only getting stronger.”

When it comes to the Ethereum application landscape, Vitalik’s overall view is that the fundamental limitations of the space are becoming more broadly understood. The knowns are falling into place and the unknowns are becoming lesser with time.

Vitalik addressed some of the challenges the ecosystem faces and thinks that answers are already in motion, citing that “many of these applications are being built today, though many of these applications are seeing only limited usage because of the limitations of present-day technology. Blockchains are not scalable, transactions until recently took a fairly long time to reliably get included on the chain, and present-day wallets give users an uncomfortable choice between low convenience and low security. In the longer term, many of these applications will need to overcome the spectre of privacy issues. These are all problems that can be solved, and there is a strong drive to solve them.”



 which highlighted how central bank digital currencies (CBDCs) are gaining traction among financial institutions and financial leaders worldwide. The benefits Ripple emphasized, included efficient and cost-effective payments, ease of cross-border remittances, advancement of financial inclusion, and improved accessibility of loans and other financial services to historically underserved communities.

The report, which surveyed over 1,600 global financial leaders, cited that “more than 70% of respondents surveyed across five global regions believe CBDCs stand to deliver major social change within the next five years, with Asia Pacific ranking the highest at 89%. Specifically, four out of five regions see financial inclusion or greater access to credit as the largest potential breakthrough to be driven by CBDCs.”

Limitations and challenges concerning implementation of CBDCs included consumer education, identity verification, offline access, and security protections. Despite the visible hurdles, potential alternatives and solutions are believed to be available but must encourage interoperability between currencies and need to be scalable.

Overall, CBDCs are garnering serious traction worldwide. The Bank for International Settlements survey showed that nine out of ten banks are exploring CBDCs, an increase of 80% relative to 2021. Further, 85% of leaders at major financial institutions shared the likelihood of their country launching a CBDC in the next four years, 44% believed the technology would enhance national competitiveness, and 43% felt the technology would increase the efficiency of payment systems.




The Bank of Japan has announced their plans to 

. Alongside key megabanks, regional banks, and private fintech companies, the BOJ’s pilot scheme is scheduled to commence in April of next year.

As early as October 2020, the BOJ was openly vocal regarding their consideration of CBDCs. In spring 2021, the BOJ launched a proof-of-concept phase which sought to gauge the costs and benefits of involvement, stating, “while the Bank currently has no plan to issue CBDC, from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, the Bank will prepare thoroughly, including implementing experiments, to respond to changes in circumstances in an appropriate manner. In the course of CBDC exploration, the Bank considers it important to apply the knowledge of various stakeholders such as the private sector, experts, and relevant public authorities.”

Fast-forward to December 2022 and the BOJ has gone live with their three-phased test in preparation to introduce a digital yen. Currently involved in phase one, the BOJ has tested basic functions such as issuance and distribution and will progress toward security, controls, and peripheral functioning in subsequent phases.

Amidst rapidly changing business environments and growing digital payment options, the BOJ foresees a shift toward cashless economies and proposes the digital yen as having advantages of speed over credit cards, immediate payments, and reduced transaction risks relative to cash.




Alibaba Cloud has expanded support for the Avalanche public blockchain to power their infrastructure services. The integration will enable developers to launch their own validator nodes and will provide access to Alibaba Cloud’s ‘plug-and-play’ infrastructure and products.

According to 

, “Alibaba Cloud, the largest cloud service provider in Asia Pacific, has expanded their line of infrastructure technology and intelligence tools to the Avalanche public blockchain, enabling users to launch validator nodes through the service and access computing, storage, and distribution resources through Alibaba Cloud’s suite of products in Asia.”

Avalanche supports upwards of 1,200 validators and handles more than two million transactions daily. Alibaba Cloud’s 

 describes Avalanche as “the fastest smart contracts platform in the blockchain industry; blazingly fast, low in cost, and eco-friendly” and includes a step-by-step tutorial to deploy an Avalanche node using Alibaba Cloud with the click of a button.



 report for 2022 outlined how digital assets can transform the lives of Australian businesses and consumers. The report suggested that Australia is well positioned to be a leader in responsible digital asset innovation and can add upwards of AU$60 billion per year to the Australian economy by 2030. Further, it was cited that Australia’s leadership in digital assets could contribute upwards of 700-1,000 new start-ups, AU$15-20 billion in additional investment, and AU$10-15 billion in tax revenue by 2030.

As the trend of digitisation increases and the global economy becomes increasingly interconnected, leadership in digital assets “will ensure that Australia maintains sovereignty over its payments and financial system. Leadership in digital assets can allow Australia to diversify its economy and grow an important new local industry.”

To succeed, however, Australia must advance in skills, innovation, and investment where it currently lags its peers in the United States, the United Kingdom, Canada, and Singapore.

Tech Council CEO, Kate Pounder, noted that digital asset technologies can provide benefits to the Australian economy, businesses, and consumers by making transactions safer, better, and easier. Pounder commented that “we want to see Australia capture the economic opportunities of digital assets, but we want to see it done in a responsible way.” She continued, “Australia is already an attractive destination for investment in data centres, but we have an enormous opportunity to position ourselves as a regional hub for green data centres, which can support the sustainable growth of tech activity. Other countries in our region such as Singapore are much more constrained by their land size and renewables capacity, which creates an opportunity for Australia to capture more of this growing market.”


Polkadot (DOT) token is now live and available to trade on BTC Markets. Learn more about Polkadot, its history and use cases via our 


BTC Markets CEO Caroline Bowler addressed Fintech 2022 in a keynote speech regarding ‘The Future of Money’. Her presentation explored how the evolution of money mirrors the evolution of human history.

Our society has become increasingly global, interconnected, and digital. The advancement of money has historically run parallel alongside societal developments and is something we all must keep ‘buying in to’ for it to remain functional. Trends have pointed toward a story of declining cash use and an increase in cash alternatives, moving to an era of programmable money via smart contracts.




Scams are on the rise in Australia, and some of them are targeting BTC Markets clients. We want to remind you of the importance of safe online practices, so you can avoid falling victim to these scams.

The most common scams right now include fake websites and social media posts that attempt to steal your personal information. Scammers may pose as representatives from companies that you interact with such as BTC Markets, and they use these fake sites to trick you into handing over your personal information. These sites often look like real websites with logos and addresses that make them appear like they're legitimate.

You should never give out your personal information or provide credit card information over email or social media messenger chats. We have a dedicated page on how to '

', which we encourage you to read. Being informed and taking simple measures is the best action you can take to protect yourself and your account while online. The Australian government’s ‘

’ website provides the latest information on how to recognise, avoid and report scams.



 The information provided in this email is for general purposes only. It should not be construed as professional financial advice from BTC Markets Pty Ltd. BTC Markets is not a financial adviser, and you should consider seeking independent legal, financial, taxation or other advice to ensure that the information relates to your unique circumstances. BTC Markets is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this information contained with this email.
Prices are accurate as of 10:15 AM AEDT, on 08/12/2022.


This Week in Crypto: 8th December 2022

Bitcoin

Litecoin

Each week, we share insights on the latest news and moves to impact the crypto market and the broader macroeconomic landscape. Want these updates delivered straight to your inbox? 

 is currently at 20/100 in the Extreme Fear zone, returning to the same level from this time last week. The index reached a high of 24/100 on Sunday and a low of 20/100 today.

We understand that in the current environment clients are seeking authoritative information regarding how we manage customer assets and our own business.

To provide transparency and further peace of mind to our clients, we are working with an external cryptocurrency auditor to provide proof of reserve reporting, this will be available in the coming weeks.

We appreciate your patience while we work through this, and in the meantime, we have reached out to our external auditors JTP Assurance*, for a statement: 

BTC Markets Pty Ltd does not currently have any external debt or other material loans or liabilities other than ordinary trade payables. JTP Assurance have audited BTC Markets financial statements since June 2020. We have completed our audit for 2021 and are currently in the process of auditing 2022

BTC Markets remains a Blockchain Australia Certified Digital Currency Exchange and is committed to the best practices outlined in the code of conduct, listed 

BTC Markets is the oldest Australian based exchange that fulfils all the following:

Segregates client assets and maintains a 1:1 ratio of client’s assets on our exchange

Provides onshore custody of all client assets

Does not lend out client's assets or offer an earn function

Has stringent KYC/AML processes as well as an ISO certification.

We will continue to work with regulators to develop legislation and compliance measures that protects consumers, whilst ensuring the growth and innovation of blockchain technology.

*JTP Assurance is an independent external auditing firm appointed as the company’s auditor since June 2020.

The events over the past couple of weeks have continued to reverberate across the digital asset space. Market participants have appeared to be in a ‘wait and see’ mode as they attempt to make sense of the broader market implications and additional fallout regarding FTX. 

Bitcoin consolidated around the US$16k-17k range last week but lost a key level of support on Sunday retracing 5.5% when on chain data showed the “

” was moving funds around, causing a sell off. Bitcoin soon rebounded and is now trading at US$16.5k (at time of publication). Both ETH and XRP followed suit initially losing ground over the weekend but are slowly recovering to levels of support. Total crypto market cap pulled back –0.54% this week and is currently at US$794 billion.
 




Where sentiment was temporarily dampened on the short-term, positive momentum and institutional activity has continued in the background. RBA Governor, Philip Lowe stated that “inflation will peak later this year at around 8 per cent, and then decline gradually over the next couple of years to be a little above 3 per cent by the end of 2024." In his speech on ‘

Price Stability, the Supply Side and Prosperity

’ at the 2022 Annual CEDA dinner in Melbourne, he provided an insight into supply side factors that will affect inflation.


In the US, details from the November Federal Open Market Committee (FOMC) meeting were released showing the FED 

 “the need to slow the pace of increase in the target range for the federal funds rate” which saw a positive reaction from the wider markets. Powell’s subsequent 

 indicated, “the ultimate level of interest rates will be higher than previously expected.”



The Australian division of FTX was placed into administration two weeks ago with 

 appointed as Voluntary Administrators for FTX Australia Pty Ltd and FTX Express Pty Ltd. The designation allows Korda Mentha to review company records and determine the most appropriate course of action. 

John J. Ray III was appointed CEO of FTX to administer all liquidation processes concerning the US Chapter 11 bankruptcy proceedings. With over 40 years of legal and restructuring experience, including Enron, Residential Capital, and Nortel, Ray’s statements reiterated the need for corporate governance and controls. 

As an industry, we believe that recent events are not a failure of blockchain and its underlying technology. They do, however, reinforce the need for improved regulation, consumer protections, and adherence to best practices. 

At BTC Markets, our clients’ interests are at the forefront of everything we do. We keep your assets secure and provide you with peace of mind when transacting on our exchange.

Australian Bitcoin miners Arkon Energy secures AUD$28 million in expansion funding.

 has generated AUD$28 million in capital to fund an expansion of its Bitcoin mining operations and acquire the Norwegian data centre, Hydrokraft. Arkon Energy is a Sydney-based start-up that utilises low-cost renewable energy to mine Bitcoin. 

The firm 

 an initial AUD$2.6 million in pre-seed round funding in February 2022 and has sustained its business operations despite a depreciating crypto market. Other competitors in the US have not been as fortunate. 

 has faced delisting on the NASDAQ.

A point of difference for Arkon Energy is their focus on renewable energy. In a recent statement, 

 commented, “The Hydrokraft purchase is part of an ambitious plan to create a vertically integrated green Bitcoin mining platform that has power sovereignty, benefits from geographic diversification, and a robust balance sheet.”



Patents have been approved for crypto focused ‘JP Morgan Wallet.’

America's largest bank, JP Morgan Chase has been granted a patent for their cryptocurrency wallet, ‘JP Morgan Wallet.’ The filing was approved on November 15th and made public on November 21st. The patent addresses an extensive range of 

, including cryptocurrency payment processing, electronic transfer of virtual currencies via online communities, and various credit transaction services. 

JP Morgan has exhibited sustained interest in Web3, the metaverse, and digital asset innovations. They were the first bank to host an experience in Decentraland, and in January 

 a paper forecasting the metaverse as an annual US$1 trillion-dollar market opportunity.
 

Brazil’s largest bank offers clients crypto custody.

The largest commercial bank in Latin America has started offering crypto custody to their clients. Brazilian bank, Banco Itaú which has US$400 billion assets under management 

 their crypto custody project will be going live in Q2 2023. The bank will provide custody services over two phases, initially to existing customers and then to third parties.

Brazil has been 

 for its usage of cryptocurrencies, ranking 7th in Chainalysis’ 

. Banco Itaú is yet to confirm which digital assets will be included in the custody program. In July 2022, Banco Itaú introduced an asset tokenisation platform which enabled clients to trade tokenised traditional finance products on the banks exchange.

Similar projects have been implemented, such as the Monetary Authority of Singapore (MAS) who conducted ‘Project Guardian’ in November 2022. The project involved JP Morgan, DSB and other major banking players trading tokenised assets on a public blockchain. More information regarding this event can be found 

We are excited to announce that BTC Markets has rolled out the new brand assets on our website and mobile app. After years of focusing on developing and delivering a world class trading experience and exceptional customer service to our clients, we are now taking the next step in the evolutionary phase of our business by uplifting the look and feel of our brand.

Over the past few months, our team have fully dedicated themselves to detailed research, planning and implementation of new brand colours, fonts and messaging that aligns with our brand mission and vision. Although we are changing our look, the core values that drives our company and culture will remain as steadfast as ever.

To streamline our online review process and ensure we are responding to your feedback efficiently, BTC Markets has partnered with Trust Pilot to introduce an online review program over the next few weeks.

Shortly, you may receive an email invitation from noreply.invitations@trustpilotmail.com asking you to rate your experience with BTC Markets and provide feedback. We encourage you to be as honest and transparent as possible, as all feedback helps us to improve the quality of our products and services to you.

In the past, we have told you not to click on unsolicited emails, so we wanted to prepare you for the Trust Pilot email that maybe coming to your inbox. Below is an example of what the email will look like.

As always, if you have any questions, please reach out to our Client Support Team via this 

 or in the Support section of our website.

Scams are on the rise in Australia, and some of them are targeting BTC Markets clients. We want to remind you of the importance of safe online practices, so that you can avoid falling victim to these scams. The most common scams right now include fake websites and social media posts that attempt to steal your personal information. Scammers may pose as representatives from companies that you interact with such as BTC Markets, and they use these fake sites to trick you into handing over your personal information. These sites often look like real websites with logos and addresses that make them appear like they're legitimate.
 
You should never give out your personal information or provide credit card information over email or social media messenger chats. We have a dedicated page on how to '

’ website provides the latest information on how to recognise, avoid and report scams. 

The information provided in this email is for general purposes only. It should not be construed as professional financial advice from BTC Markets Pty Ltd. BTC Markets is not a financial adviser, and you should consider seeking independent legal, financial, taxation or other advice to ensure that the information relates to your unique circumstances. BTC Markets is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this information contained with this email. Prices are accurate as of 10:15 AM AEDT, on 24/11/2022. 

This Week in Crypto: 24th November 2022

Solana

Bitcoin Fear and Greed Index is currently at 32/100 in the 'Fear' zone up 9 points from this time last week. The index reached a high of 33/100 on Wednesday and a low of 20/100 on Saturday. 

Welcome everyone to the first edition of ‘CEO's Corner’ where each month I hope to shed some light on what we're focusing on at BTC Markets to make your experience the best it can be.

Firstly, on Tuesday night, the federal government handed down their mini budget which outlined steps for improving the productive capacity of our economy. As an Australian based cryptocurrency exchange, this outcome closely aligns with our business objectives and with those of the local digital assets industry.

According to research from Ernst & Young, our sector currently contributes $2.1 billion to the Australian economy and their 2021 report states that under the right policy settings, this contribution could grow to $68.4 billion by 2030 (or, about 2.6% of the national economy).

As an industry, we have consistently sought out opportunities to collaborate with government on defining a proportionate regulatory environment for our sector. The token-mapping exercise as recommended by the 2021 Senate report is a vital stepping-stone towards regulatory clarity and one, we support. However, we need ongoing intellectual investment from government to drive and accelerate responsible regulatory outcomes without stifling growth and innovation.

In our 2020 submission to the Senate committee, BTC Markets stated that regulation sets the tone. It builds the culture, facilitates the flow of capital and manifesting of skills in our workforce. It is needed to construct the right safeguards, and demonstrate industry preparedness, in protecting all investor clients. It also provides surety as to the direction for investment and jobs growth.

International partners such as the European Union are embracing this opportunity with their recent legislation. We believe it is imperative that we move with the times or risk losing both our competitive edge and the digital economy. Our goal is to work with the government to keep innovation and consumer protections at the very heart of our industry.

Talking about consumer protections, we’re delighted to once again be the only Australian based crypto exchange to be included in Digital Asset Research’s (DAR) list of ‘

’. 450 exchanges across the world are reviewed each quarter with the aim to eliminate any exchanges not considered ‘appropriate’ for determining an accurate market price. The DAR vetting process applies ‘institutional-level diligence to digital asset markets’ and their goal, is to provide reliable crypto data in an environment where cryptocurrencies trade across hundreds of lightly regulated or unregulated exchanges. With only 21 exchanges meeting their stringent criteria, this again confirms our commitment to provide the fastest and most transparent trading platform and prices to our clients.

Lastly, BTC Markets will be at the Singapore Fintech Festival November 2nd to 4th, joining the Australian Trade and Investment Commission (Austrade) Team at the Australia Pavilion booth. It’s a great opportunity to be at the forefront of FinTech in the APAC region and we are excited about the fantastic line up of speakers and attendees. If you are at the event, come by booth 5F17 and say hi.



Looking at the daily chart of BTC, we see the further squash of volatility and tightening in price, increasing the probability that we are on the verge of a macro move. Of course, alongside we are hearing that global currencies, such as the British Pound, and the S&P 500 stock index are now more volatile than our fearless leader Bitcoin.


With the USD reaching at least a temporary high, a path of least resistance is now being gifted to many of the world’s "risk" assets, such as BTC and other cryptos. DXY, being the USD's value relative to a basket of other fiat currencies, is the metric of choice for most traders. As this metric is displaying signs of exhaustion and changes in market structure, we see an inversely correlated move taking shape as most crypto assets commence a move off the local lows. The counterpart to this is with such a data heavy week in the US (New Home sales, Unemployment and Consumer Sentiment) will we see the strength and continuation to this move that we need to sustain price? If we are looking at BTC/AUD, daily candle closes above our previous local high of $32,530 is the first step.

In the last few days, we have also seen the predictions for the next US FED interest rate hike to come in at 50bps, compared to the 75bps as originally thought. In concert, the Investor Fear & Greed sentiment indicator has seen a lift from “Extreme Fear” and is now into the 'Neutral' zone, with a read of 55. If this interest rate prediction does play out, and we see a slight reprieve from the US FED, it is another factor of confluence which favours the recent mark up in price.

The crypto market cap is sitting at AUD $1.608 trillion, a 5.58% increase since last week. BTC has settled at AUD $32,069, a 4.84% increase, ETH up 18.24% at AUD $2416.41, and XRP finished at AUD $0.7212, a decrease of 0.52%.

On the desk we continue to see strong volume on XRP - being the clear trade of choice for many over the last week. However, with the current price movements, it's a clear switch in flows over to BTC and ETH, giving XRP a break. Impressive gains for ETH with 5.72% jump in the last 24 hours.

Introducing SOL, the native token for the Solana blockchain

Solana (SOL) is an open source, permissionless blockchain with a focus on decentralisation and scalability. A permissionless blockchain allows anyone to participate in the network, rather than requiring the user to first register or obtain permission from a central authority. The network relies on the use of its native currency SOL for transaction fees and staking.

Solana claims to reduce latency in transaction verification times by up to 10x compared to other blockchains like Ethereum. It uses its own Proof-of-Stake (PoS) protocol called '

 that relies on a system clock for verifying transactions which makes it fast but also potentially less secure than other PoS protocols like Ouroboros (Cardano). A PoS consensus mechanism allows users to earn rewards simply by owning SOL tokens and locking them up for a certain period.

SOL is the first of many major marketcap coins coming to BTC Markets.



An alternative scaling solution launches alpha on Ethereum mainnet

Ethereum transactions could become faster and cheaper in the future with ZK rollups from 

, a layer-2 Ethereum scaling solution. Over the past four years, zkSync has been developing groundbreaking technology on Ethereum’s test net which aims to reduce gas fees and increase transaction speeds by 20x.

ZkSync are rolling out on Ethereum's mainnet through three stages; first is the Baby Alpha stage, second is the Fair Launch Alpha and third is the Full Alpha launch.

The Baby Alpha launch (a version that has passed initial quality assurance, but no documentation or support is available) is on the horizon for October 28th and show the feasibility of operating in a live Ethereum environment. Using smart contracts, ZK rollups bundle together individual transactions from Ethereum's main layer off chain, combines them, then returns them to the mainnet to be processed. This produces greater efficiencies resulting in reduced fees and faster processing times. Unlike other layer-2 rollups (which assume transactions are correct), zkSync technology uses zero-knowledge proofs to confirm the validity of the transaction without disclosing the evidence which supports them.


According to 'The Crypto Times' zkSync should launch its final stage full alpha by the end of 2022, assuming the prior two implementations are successful.

Bank of America says “investors may view Bitcoin as a relative safe haven.”

Bank of America digital asset strategists claims that “investors may view Bitcoin as a relative safe haven as macro uncertainty continues and market bottoms remain to be seen.” 

 has been on a steady rise since mid-August, with the last 40 day moving average of the asset pair growing to 0.50. The S&P 500 and Nasdaq have a higher correlation to gold at 0.69 and 0.72 respectively, although both have come off record highs in previous months. 

Demand for Bitcoin is on the increase despite price consolidation since mid-September which has since range bound behaviour from US $18,000-$21,020. We see this exemplified through 

 reaching a new all-time high recently which indicates increased competition amongst Bitcoin miners. The 

 refers to the total combined computational power that is being used to mine and process transactions on a Proof-of-Work blockchain. The higher the hashrate, the more machines working to discover the next block which in turns secures the network and reduces the possibility of a malicious attack. 

ETHW airdrop distributed to eligible recipients

 ETHW to the accounts of all eligible clients (those that held ETH on BTC Markets at the time of the Merge). We have enabled withdrawals for ETHW, however ETHW deposits and trading will not be supported on the exchange. Eligible clients will now see their ETHW balance in their portfolio and will have received an email confirming the airdrop.

Take advantage of our tax partner discounts.

Completed your taxes yet? With the tax deadline for filing individual returns fast approaching, we have secured tax partner 

 to help you organise your crypto documentation. Don’t forget to check out our tax 

When security matters, trade with confidence at BTC Markets.

Your account and asset security are our main priorities. We have institutional-grade security and compliance processes in place including an onshore client service team available to assist you seven days a week. We are 100% Australian-owned, keep your assets on shore, and do not trade against you for our own profit. You can trade with confidence knowing that you have partnered with a fully licensed, compliant, and self-regulated crypto exchange. If you have any questions about how we manage your assets, please feel free to contact us at any time or visit our 

 to learn more about how we keep your account secure.

This Week in Crypto: 27th October 2022

BTC Markets has been supporting the Ethereum chain and its updates since Ethereum commenced in 2015. If you are holding ETH, your assets will remain safe before, during and after the Merge. 

What are BTC Markets doing to support the ETH Merge? 

As the date of the ETH Merge is not fixed, BTC Markets are carefully tracking updates within the crypto community and have the team on standby to support necessary activities at the time of the Merge. 


To manage any instability in the network, BTC Markets will suspend deposits and withdrawals of ETH and ERC-20 tokens for a short time before and after the Merge, which is forecast to occur on the 15th of September 2022. 


It is possible that the ETH Merge will result in a hard fork, leading to the existence of two chains. A snapshot of ETH balances will be taken at the time of the Merge, so that if there is a split, we can effectively distribute the new token to our clients. Further updates will be provided should two viable chains emerge. 


Clients of BTC Markets will still be able to trade ETH and ERC-20 tokens during this period. 


We will keep you up to date via announcements on our social media pages and direct emails. 

What is a hard fork and what does it mean for me? 


There are two possible outcomes should a fork occur following the Merge:

 If the PoS chain is supported by most of the community, and there is little support for a PoW forked chain, only one chain will remain.


 If the Merge is contentious, and there is continued support for the current proof of work consensus mechanism, it is possible that two viable ETH chains will emerge, and a new token will be created. For this reason, BTC Markets will take a snapshot of all ETH holdings at the time of the Merge. We will then credit clients for the new chain, based on the snapshot of ETH at the time of the fork expected to occur on the 15th of September 2022. 

Your ETH private keys will remain secure on BTC Markets during this time. 


 Clients can trade ETH and ERC 20 tokens on the exchange during this period. However, if the chain forks, we cannot guarantee what fork of ETH your trades will ultimately relate to. Please remember, ETH and ERC-20 deposits and withdrawals will be disabled ahead of and during the Merge. 


 If you want to continue to deposit and withdraw your ETH, you may send your tokens to a platform maintaining these services. Please be advised that this action may expose you to a higher level of risk. 

Preparing for Ethereum's Merge as a BTC Markets Client

ETH Merge date is anticipated for 15th September 2022

The network is transitioning from a proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism

The Merge is expected to reduce Ethereum's energy consumption by ~99.95%

Customers do not need to take any action to participate in the Merge

BTC Markets will monitor activity at the time of the Merge and evaluate any possible forks

"The Ethereum network move from proof-of-work to proof-of-stake consensus mechanism has been compared to changing a plane's engine mid-flight. It is hard to work in technology and not be thrilled by this audacious undertaking, so near completion"

After years of planning and development, the Ethereum Mainnet is anticipated to migrate from its existing PoW consensus mechanism to its new PoS validation structure on 15th September 2022. The Merge, announced by 

 will improve the scalability and sustainability of the Ethereum network. In this article, we will explore some of the basic concepts of Ethereum, the significance of this Merge, and the impact it may have on you as a holder of ETH.

Ethereum is a programmable blockchain, which is a software platform that can be re-coded to build new uses for the technology. The network’s digital asset, Ether (ETH), is the second largest by market capitalisation.

Ethereum has a feature called smart contracts. A smart contract automatically executes the terms of an agreed contract, without the need for any third party. It is useful for many industries, including e-commerce, e-gaming, and financial services.

, the “Mainnet is the primary public Ethereum (ETH) production blockchain, where actual-value transactions occur on the distributed ledger. When people and exchanges discuss ETH prices, they're talking about Mainnet ETH.”

The Mainnet currently operates on a PoW consensus mechanism that enables the Ethereum network to agree on things like the order of transactions or account balances. This avoids the possibility of double spending, and ensures that the Ethereum blockchain is very secure.

PoW relates to the underlying process that miners undertake to add valid blocks to the blockchain. As more blocks are added and the blockchain gets longer, the work gets harder. This means miners need to consume larger amounts of computing power to validate new blocks, which in turn is very energy intensive and not very sustainable.

The Beacon Chain is Ethereum's new PoS blockchain, and has been described by 

 as the “spine that supports the entire Ethereum 2.0 system”. Like Mainnet, the Beacon Chain is the consensus mechanism of the network, responsible for creating new blocks, validating them, and rewarding validators with ETH for keeping the network secure.

It was deployed in December 2020 and has been running parallel to Ethereum’s Mainnet, confirming on-chain data, but through the PoS consensus mechanism. Running the chain separately, allowing for the identification of bugs or development issues prior to the Merge.

Being a PoS network, the Beacon Chain uses less energy than the PoW protocol (~99.95% less), as transactions and blocks can be approved quicker without the need to solve complex equations. Blocks on a PoS chain are said to be ‘forged’ as opposed to ‘mined’.

The Beacon Chain has been in operation for 19 months, testing its integrations through the various networks that Ethereum has deployed. Most recently they completed a Merge on the Goreli testnet on August 12th, 2022 - the largest of Ethereum’s test networks. This signalled the final hurdle before a Mainnet migration can occur, which is anticipated to take place on the 15th of September 2022.

Around 15th September 2022 (at TTD 58750000000000000000000), data held on the Mainnet (the existing PoW consensus protocol on Ethereum) will be merged with the Beacon Chain, and the new PoS consensus will become the engine for block production on Ethereum. After the Merge has successfully taken place, mining will no longer be the means of producing valid blocks on the network, and all future block validation will be processed through PoS.

No history is lost from the blockchain. As Mainnet gets merged with the Beacon Chain, so too will the entire transactional history of Ethereum.

The move to a PoS consensus mechanism will provide the Ethereum network with heightened security, reduce energy consumption (by 99.95%* due to less computational power) and provide greater scalability opportunities not currently available under PoW e.g. sharding; a feature that makes data transfers and accessibility faster and more efficient for layer 2 rollups. Caroline Bowler stated, "The Merge is said to be the first of five major improvements to the Ethereum network. Vitalik Buterin is quoted as saying this will move the network from 40% to 55% completed".

PoS also allows ETH holders to earn crypto rewards through staking. Ethereum staking rewards are earned by setting up an individual node or delegating your ETH to a pool. By participating in staking, you assist in the validation of the Ethereum blockchain, further securing the network. The Ethereum network offers ETH as a reward for doing this.

Setting up your own pool requires 32 ETH, but if that’s not feasible, you can join a staking pool. More information on staking can be found on 

.

Unfortunately, due to the Australian regulatory requirement to hold a managed investment scheme license, BTC Markets is not currently able to support pooled staking for any asset. We will continue to monitor the regulatory landscape while we investigate alternative earning opportunities for our customers.

Will the Merge Impact Ethereum Token Holders? 

As a holder of Ethereum, there is nothing you need to do with your funds or wallet ahead of the Merge. There is no upgrade to an “ETH2” token, and any funds held before the Merge will still be accessible after it is complete.

It’s important to remain vigilant as scammers may attempt to target users unaware of how the Merge will be executed. Do not engage with notifications asking you to redeem, swap, or send ETH for “ETH2”, or any offers from others to act on your behalf to prepare you for the Merge.

There is some community speculation of a new Ethereum token due to a hard (contentious) fork following the Merge. BTC Markets will monitor activity at the time of the Merge and if a hard fork occurs, evaluate the impact on the network. To manage network risk, BTC Markets will suspend ETH and all ERC_20 token deposits and withdrawals a couple of hours before the Merge. This freeze will remain in place until the Merge is complete and the network is stable. We will keep our customers informed via our social media channels (

) during the event.

A small number of exchanges have listed ETHS and ETHW tokens as pre-emptive tokens in the event a hard fork occurs, and two chains emerge as viable. However, these pre-emptive tokens are not endorsed by the Ethereum Foundation.

Please always check reputable sources, such as Ethereum.org, for official releases and guidance.

What does the Industry Expect to Happen to Ethereum Post-Merge? 

, Ethereum could become worthy of institutional investments and adoption post-Merge. The report suggests that crypto could go the way of futures and exchange-traded funds as companies look to diversify their holdings into the crypto landscape.

BTC Markets is excited about what the upcoming Merge will do for the Ethereum blockchain and the impact it will have on the broader crypto ecosystem. 

If you have any further questions, please contact our 

The Ethereum Merge is Coming

Decentralised transactions are one of the many benefits of cryptocurrency. Users can make secure, reliable transactions from user-friendly crypto wallets. The result is a payment system that is revolutionising the payment landscape.

But what about Ethereum? What are the unique crypto advantages of Ethereum? Why is this cryptocurrency network so well suited to 

Ethereum operates a decentralised network and is immune from any external or third-party control. This means there is no maintenance downtime, no risk of interference, and no danger of fraud. All of these things are a few of reasons why so many use 

Constant development of the Ethereum blockchain

One of the cons of Ethereum is that transactions are not immediate. However, neither is Solana, 

, or other cryptocurrencies. When developing new currencies, the time taken to settle a transaction is one of the most important factors. Currently, Ethereum is able to handle double the number of transitions than its market-leading rival, Bitcoin.

Ethereum is moving to a proof of stake consensus mechanism that will allow it to process a higher number of transactions faster per second and significantly reduce carbon emissions caused by miners validating the network under its current proof of work framework. Through the continued innovation and development of the Ethereum blockchain, Eth has become the second biggest cryptocurrency by market cap.

 is a little different to competing networks such as 

. It is based on a smart contract system that can support a wide range of different transactions and decentralised applications. This means Ethereum can be used to pay for a wide range of different assets via the blockchain — rather than simply being limited to Ether-for-Dollar trades.

This leads to significant Ethereum potential, which opens doors for a growing number of transactions in the future. Users can harness smart contracts to complete transactions for everything from NFTs to real estate property over the blockchain, making Ethereum a far more interesting proposition than Bitcoin.

 features include a smart contracts system that developers can harness as they create their own inter-connected networks and platforms. This means the potential of Ethereum is only going to increase in the future.

This is great news for investors looking for key Ethereum advantages as they make payments. With more integrations and support for a diverse range of different coins and value sources, Ethereum represents an exciting environment for payments.

Remaining aware of the pros and cons of Ethereum

While there are many benefits of Ethereum as a payment and transaction platform, users still need to be aware that there are pros and cons. Ethereum is already widely used for transactions across the world, but this does not mean the network does not have its own negative aspects. Take a look at some of the points you need to remain aware of.

Ethereum transactions are not instantaneous

Ethereum still uses a proof of work consensus mechanism to validate transactions. During periods of high demand, this period can be as long as a few hours or even a few days. The transaction network is still reliable but cannot provide the instant transactions that bank customers are accustomed to.


This proof of work model may be replaced in the future by 

 operations. This will make transactions far faster, improving the experience for all users. It will also make the network more sustainable, reducing the amount of energy required to mine transactions.

You will need to pay to make transactions on the Ethereum network. To process a transaction, you are required to pay a ‘gas fee’ that is used to reward miners for validating transactions and supporting the Ethereum blockchain.


Unlike Bitcoin, where a small percentage of the transaction value is used to provide the reward, Ethereum requires a fixed fee for transactions. As a result, users who want to pay with Ethereum will need to anticipate the cost of gas fees in their transaction.

The price of Ethereum is volatile, just like the prices of all cryptocurrencies. Whether you are working with Bitcoin, 

 or XRP, there is the potential for the crypto value to fluctuate quickly, and this can be problematic.

 you use to complete your transaction could change quickly. In other words, it's possible that a $100 value of Ether could be worth substantially more or less than it was a day or month prior.

Invest in Ethereum and make payments using BTC Markets

, you can buy and sell crypto on the open market. You can use your own crypto wallet to make payments and transactions via the platform and harness the power of Ether as a genuine alternative currency. Get started today, and set up your 

 via our intuitively designed website. To learn more about how BTC Markets works, reach out to our team directly.

Grow your understanding of Ethereum and Ether transactions by browsing some of the most 

How many transactions are processed on the Ethereum network each day?

Ethereum continues to grow rapidly as a payment platform, handling as many as 1.1 million transactions per day in July of 2021. This is an interesting development for Ethereum, as this figure is actually far in excess of the daily transactions handled by the platform's major rival, Bitcoin. Transactions on the Bitcoin network reached only 250,000 for the same month.

While Bitcoin is still far more valuable than Ether crypto tokens, evidence suggests that users prefer Ethereum for making transactions. This brings Ethereum closer to the intended objective of the cryptocurrency project from its beginning — to become a viable alternative form of currency that can support transactions.

[Reference: https://www.statista.com/statistics/730838/number-of-daily-cryptocurrency-transactions-by-type/]

Where can I view my Ethereum transactions?

You can view your transactions in your crypto wallet. 

 provides wallet storage features, where you can store your Ether tokens and other forms of cryptocurrency in a safe and secure environment. You can also use this feature to make transactions across the Ethereum network and manage your recently processed transactions.

Our wallet is designed to be easy and intuitive to use. You will be able to open and view a list of your Ethereum transactions, keeping track of incomings and outgoings across the network.

You can track the Ethereum transactions you have made in your crypto wallet provided by BTC Markets. As mentioned above, you can use your wallet to find a list of transactions you have already made, helping you to keep track of your activity and your balance in Ether or in any other form of crypto held in the multi-coin wallet.

You cannot track Ethereum transactions that have not been finalised, however. As the Ethereum network relies upon a proof of work model to write transactions into the blockchain, there is a latency period while transactions are being processed. The procedure is completely decentralised, and there is no risk of tampering or third-party interference — a key advantage of the blockchain and an important cryptocurrency benefit. Once the transaction has been completed, confirmed and written into the blockchain, you will be able to see this in your crypto wallet.

Many users across the world are already working with Ethereum to make transactions. In fact, far more people utilise Ethereum to send and receive funds than other high-profile cryptocurrencies, such as Bitcoin. This provides peace of mind to anyone who is considering whether to use Ethereum as a payment network.

Further peace of mind can be drawn from the fact that many banks and financial institutions have also put their faith in Ethereum. Institutions such as J.P. Morgan are already using a form of Ethereum to operate a payment network based on the crypto's smart contracts. This is an example of how Ethereum transactions are rapidly becoming part of the mainstream payment landscape.

BTC Markets Blog

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Preparing for Ethereum's Merge as a BTC Markets Client

The Ethereum Merge is Coming

Advantages Of Paying With Ethereum