THIS WEEK IN CRYPTOCURRENCY
The Markets, they bleed
It’s been a very tough and agonizing week for crypto investors old and new. All markets were bleeding red this past week and it seems nobody was willing to call the bottom yet (At least on twitter). While many analyst don’t believe we’ve entered a bear cycle, many agree more correction is expected. Finding the bottom of any forex, stock or crypto is like catching a knife, so be patient!
The overall cryptocurrency market cap suffered with the Bitcoin dump and dropped a steep 20% in the past week bringin us to a total market capitalization of $322bln. It’s been a rough two weeks for crypto investors but relief seems to be on the way with the unexpected news that the G20 rejects cryptocurrency regulation since it doesn’t pose a risk to global financial stability. Great news right? The markets thought so.
Bitcoin continues it’s retrace from all time highs with a near 60% drop. For all those new investors that bought the highs in December and January, this is a reality check. For those who waited patiently in FIAT for this retrace to find a bottom could be rewarded. Week to week Bitcoin has dropped 17% from $9120 to $8152 as of this post. The bears seem to be in control but with the G20 news the bulls might finally wrest the price away from the bears.
Ehtereum continues to sink dipping below $500, a price point that many dip buyers were waiting for. This represents a steep 30% drop, and to be completely honest I am not sure we have found a solid bottom yet. Even if you bought this dip and the price dropped you still have an excellent entry point. Never forget the wise words of the Oracle of Omaha “The stock market is a device for transferring money from the impatient to the patient. ETH will revover.
Litecoin could not escape the bleeding markets. The LTC retrace continues from it’s all time highs in December. In the past week LTC has experienced a 20% dip in price and is in clear price discovery between $140 and $231. Pretty choppy, huh? Not even news of the lightning network could stop this.
Now that all the depressing price updates are over let’s check out the most interesting news and insights from this week in the crypto space.
What’s new at Crypto is Coming
We’ve had a busy week here at Crypto is Coming starting with Connor’s fantastic piece “The most controversial figure in Bitcoin – Jihan Wu”. If you have never heard of Jihan Wu then you must read this piece, he is a fundamental actor in the Bitcoin mining scene and his influence on bitcoin and altcoins grows daily.
Many of you have heard of Ethereum. Many of you likely own it as well. But do you know what makes ETH so damn interesting? Smartcontract, decentralized apps, and a massive marketcap. Check out this article and learn with us.
Mt. Gox….That damn exchange. If you’ve never heard of “Mt Gox” then sit down, prepare some popcorn and read ahead. Let’s take a walk down memory lane and examine what has definitely been the most influential exchange in cryptocurrency history, for better or worse.
We got some really nice feedback on the Cryptographics we recently produced “Is Bitcoin destroying the planet”. So we decided to continue using this format and created a “A Brief History of Bitcoin” cryptographic. Let us know what you think, and give us some suggestions on what our next Cryptographic should be?
Cryptocurrency news from around the internets
The Financial Stability Board of the G20 recently stated that “crypto-assets do not pose risks to global financial stability at this time“. Queue the dancing bitcoin bulls! No seriously though this is great news and the BTC price acted accordingly. Though “at this time” gives us the impression that crypto is on the regulators field of vision, but not actionable yet. My humble opinion there.
I recently read a fascinating article from The Atlantic about how mining changed one town for the worse. Now we see another city has outright banned the practice of cryptocurrency mining.
Binance is now the second largest centralized cryptocurrency exchange in the world by 24hr volume. But that’s not the news that made waves last week. You will have noticed that we have focused quite a bit here on Crypto is Coming on decentralization and decentralized exchanges because we firmly believe in non-centralized control. This week Binance announced that they will release a public blockchain: The Binance chain.
Keeping on the Binance topic, crypto traders suffered mild cardiac arrest when #FUD swirled about a possible Binance hack. Thankfully no funds were compromised but it was still quite the scare, considering Binance has such strong security. As of the latest update all the inrregular trades have been reversed. This is why Binance is one of the largest exchanges: They are quick to respond and (somewhat) transparent.
The third age of credit is upon us! At least that’s what Tech Crunch says. It’s about time our antiquated Credit system get’s a shakeup. Check out this most excellent article on the subject.
Now that the BTC scaling debate os over (O’ Rly?) the next battleground is shaping up to be about changes to PoW. If you don’t know what proof of work is check out guide: What is Proof of Work? Crypto 101. Understanding PoW is findamental to understanding cryptocurrencies.
Large internet enterprises are jumping on the banning bandwagon. Google is the latest large entity that has banned ICO ads. It’s terrible news for ICOs, but it’s great news to the consumer. Let’s face it there were, and are, loads of fishy ICOs out there and consumers were being scammed. This is a positive development.
Let’s keep on the subject of crypto bans: Reports are that Twitter will be begin to prohibit a range of cryptocurrency ads due to the looming specter of regulatory intervention. Initial coin offerings (ICOs), token sales, and cryptocurrency wallets globally will be affected.
Did you know that a Bitcoin Misery index exists? It kinda reminds me of the Doomsday clock, only not so…you know…”end of the world” like. Anyhow the misery index is described as a proxy for how investors feel about Bitcoin’s “price action”. Think of the Relative Strength Index (RSI) we use to detemine if an asset is overbought or oversold. Currently the BMI is signaling an oversold market which we can interpret as a buy signal.
That’s it for this weeks edition of the Raven’s Dispatch. We hope you enjoyed it. If you have any feedback email us at email@example.com
All the best,
The Crypto is Coming crew
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