Crypto Week Ahead: Deutsche Bank-Taurus Partnership Lends Relative Stability To Coin Prices

Over the past seven days, Bitcoin (BTC) price achieved a high of $26,813.97.

Crypto prices have been on the recovery path over the past week. Given that there’s no major crypto event on the horizon in the coming week, it could be speculated that the coins will continue to remain stable or trade sideways over the coming days. The recent ease in price volatility is a result of Deutsche Bank forming a partnership with Swiss crypto security firm Taurus. However, Binance.US trading has taken a hit, and it remains to be seen how that lends to overall market sentiment.

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile in nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their own research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (September 11), the overall crypto market cap stood at $1.03 trillion. BTC price stood at around $25,700, ETH price stood at around $1,600.

A week later, the overall market cap rose $1.06 trillion.

DeFi's total volume stands at $2.11 billion, at 11.23 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $16.50 billion, at 88.04 percent of the total 24-hour market volume. As per CoinMarketCap, the overall market fear and greed index stood at ‘Fear’, at 38 points (out of 100).

BTC dominance, at the time of writing, stood at 49 percent.

Over the past seven days, Bitcoin achieved a high of $26,813.97 (on September 16) and a low of $25,007.16 (September 12).

Ethereum, on the other hand, saw a high of $1,650.72 (September 16) and a low of $1,541.73 (September 12).

Crypto Events To Note

In a positive development, Deutsche Bank, the largest financial institution in Germany, has formed a partnership with Taurus, a Swiss startup that specialises in crypto security and tokenisation. This collaboration comes after Deutsche Bank's efforts to obtain a crypto custody license from the Federal Financial Supervisory Authority (BaFin), which is the regulatory authority for finance in Germany. 

Taurus focuses on delivering high-quality infrastructure for various crypto-related services, including crypto issuance, custody management, and trading. Their expertise covers cryptocurrencies, tokenised assets, and nonfungible tokens (NFTs).

For several years, Deutsche Bank has been closely observing developments in the crypto industry and has expressed its intent to offer crypto custody and trading services to its clientele. In June 2023, the bank took a significant step towards this goal by applying for a digital asset custody license from BaFin, the financial regulatory body in Germany.

On a slightly worrisome note, Trading activity on Binance.US hit unprecedented lows in September, reflecting the significant challenges faced by the crypto exchange. According to data from Amberdata on The Tie Terminal, on September 16, the trading volume on Binance.US was reported to be $5.09 million.

The lowest point for trading activity during the month occurred on September 9, when the total trading volume was $2.97 million. This shows a sharp decline compared to September 17, 2022, when the trading volume was approximately $230 million.

Binance.US, an extension of the global crypto exchange Binance operating in the United States, has been under heightened scrutiny. Legal troubles emerged on June 5 when the Securities and Exchange Commission (SEC) filed a lawsuit against both Binance and Binance.US. The charges pertain to unregistered securities offerings, wash trading, and other violations. The SEC alleged that Binance.US failed to register as a broker-dealer and neglected to register the offer and sale of its staking-as-a-service programme.

Lastly, Dubai-based cryptocurrency exchange JPEX has criticised both regulators and external market participants, attributing a liquidity crisis to their actions. This crisis has compelled the platform to raise withdrawal fees and suspend specific activities temporarily.

In a blog post dated September 17, JPEX expressed dissatisfaction with what they viewed as unjust treatment from particular Hong Kong-based entities. They stated that this treatment, coupled with negative publicity, caused third-party market makers to intentionally lock funds.

According to JPEX, these entities requested additional information during negotiations, curbing their liquidity and significantly escalating daily operational expenses, thereby creating operational challenges.

As a response to the liquidity crisis, JPEX declared the delisting of all operations associated with its Earn product by September 18. Henceforth, users will no longer be able to initiate new Earn orders, and existing ones will be honoured until the specified product end date.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, “Bitcoin traded above the $26,000 mark over the weekend. This positive movement could be driven by a significant development involving Deutsche Bank, Germany's largest lender, which unveiled its partnership with Taurus, a Swiss cryptocurrency startup renowned for its expertise in digital asset custody and tokenisation services. This week, Market participants anticipate the Federal Open Market Committee meeting scheduled for September 20, as it can influence market dynamics. Trends on Santiment, a crypto analytics firm, revealed that investors are now choosing to retain BTC and ETC instead of trading them on exchanges and that the supply of Tether’s USDT is at its highest since March 2023, indicating a positive market outlook. Over the weekend, Bitcoin breached the major resistance level at $26,220 and now needs to breach the $27,400 resistance level to continue its upward trajectory. Meanwhile, Ethereum maintained its position above $1,600.”

WazirX Vice President Rajagopal Menon offered his take, “Bitcoin (BTC) traded around $26,300, up 2 percent from last week. Despite starting with losses due to FTX's potential asset sale, the market resisted rapid declines. The ongoing trend is rapid reversals of even small price gains, driven by various sellers capitalising on rallies. Positive news about Franklin Templeton's spot BTC ETF and Deutsche Bank's digital asset initiatives may provide support, potentially rendering Monday's breakdown as a false signal.”

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.