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Weekly Crypto Brief 19th November

Weekly Comment:

After the comment last week that Crypto-currency markets were quiet and range-bound, the same cannot be said of the last seven days, albeit with movement in generally the wrong direction!

Whilst ongoing Brexit talk dominated the wider headlines, impacting both currency and equity markets, the price of Bitcoin fell more than 10% on Wednesday to its lowest levels in over a year (Oct’17)  This move also sent shockwaves through the wider crypto market with a predominantly downward day reported on all Top 10 Cryptocurrencies by market cap as well as the majority of all other Alt-coins.

The strange thing that followed was a distinct lack of reasoning for the move, with newswires unusually quiet, but in recent days a few theories have emerged as to what triggered the big sell off:

1. Technical Break-Out:  As we reported ourselves- BTC had been trading in an ever tighter range for a prolonged period of time and it was inevitable at some point that a break would come.  The move did indeed come as the $6,000 level was breached and then as “stops” in the market were hit, the move exacerbated itself.

2. BItcoin Cash Hard Fork:  On Thursday, Bitcoin Cash was due to Hard Fork and split into two currencies.  Hard Forks have taken place every six months in order to upgrade and improve the protocol, however this was the first time that consensus could not be met and so feeling was that this could be the beginning of two emerging factions that could impact future developments.

3. A Reduced Market Interest in Cryptocurrencies:  Bitcoin has spent the majority of 2018 in the doldrums and critics are now starting to question the overall interest in the industry. As the year has progressed volumes have fallen away and some are arguing that the adoption of cryptocurrencies has stalled.

4. A move lower in Tether:  There was initial speculation that Stablecoin Tether (which has already come under scrutiny for being “fraudulent”) was once again coming under pressure from the market and that this in turn triggered the BTC sell-off.  This was however deemed to be false when price action of both moves was overlaid to see that the BTC move had in fact started some time before the Tether sell-off.

The next week is going to be pretty important for crypto and more specifically Bitcoin as some analysts feel that there is still more pain to come, however many already in the space are still looking to HODL and feel that an upswing will be imminent and that sellers will exhaust themselves.  The wild upside benchmark levels that were called by crypto-evangelists may well have been reigned in somewhat, however, some are still calling levels in excess of $10,000 before year end which would indicate a pretty strong recovery!  Fingers crossed!

Have a great week.

Past Week Talking Points:

  • Chipmaker Invidia has seen its market cap fall by over $23 billion dollars as the CEO states that the “crypto hangover has lasted longer than expected”.  The disappointing earning reports on Thursday was attributed to a fall in demand for their product that assists in Cryptocurrency Mining
  • The Canadian House Finance Committee has suggested that Cryptocurrencies should become regulated shortly in order to prevent money laundering
  • Thailand’s Democratic Party, the main party to the opposition has become the first major political party in the world to carry out primary elections entirely on a Blockchain
  • Larry Fink, CEO of BlackRock has stated the asset management company would not be launching an Exchange Traded Fund (ETF) until such digital assets are “legitimate”. This is clearly in stark contrast to Fidelity Investments who launched a digital assets trading service last month
BTC Price:  $5,363

Last 7 Days: -15.99% 1month:  -16.96%    12months: -30.49%

BTC Commentary:

See above weekly comment!

BTC Volume:  
12th November:  $4,181,951,197 (BTC price of $6,409)
19th November:  $4,603,066,720 (BTC price of $5,363)
10.06% increase in trading volume in the last 7 days

Last 7 Days Big Market Movers:

Nasdacoin                                    NSD    UP 233%      Price: $2.75
Animation Vision Cash                 AVH    UP 110%      Price: $0.0012
Factom                                         FCT     UP 78.50%   Price: $7.83

ETH Price: $157.85

Last 7 Days: -24.83%  1month: -21.90% 12months: -56.59%

Along with the overall market melee related to the Bitcoin sell off, Ethereum continued to have a dreadful year with the price breaking down through more levels of support of $200 level and below.  To add insult to injury for the second time this year we have also seen XRP (Ripple) boost into the number two spot by market cap, albeit this time the move appears that it could remain in place for a longer period of time given that the last occurrence was for less than a day. As things stand- Ethereum’s market cap stands at just over $16billion whereas XRP now stands at $19billion.

Market Cap. Dominance:

BTC: 53.5%
XRP: 11.12%
ETH: 9.39%
Other ALT-Coins: 25.99%