Market report

DO YOU KNOW WHAT IS HAPPENING TODAY?

London Block Exchange

26th January 2017

A debate is taking place about the market’s direction this afternoon

DO YOU KNOW WHAT IS HAPPENING TODAY?

A debate is taking place about the market’s direction this afternoon

Trading for the January 2018 contracts of CME’s bitcoin futures terminates today at 16:00 GMT. Will we see a major dip and bounce as when CBOE’s contract expired last week, or is this going to be a non-event as its low trading volume suggests?

Crypto investors have been divided on the impact of this affair. On one side, there are those who say “not so fast” — there are few incentives to manipulate the market ( a maximum of ‘only’ £30 million per contract holder) and it’s costly to achieve said manipulation.

On the other hand, numerous media reports over the past few months have highlighted the willingness of hedge funds in shorting bitcoin, so it’s not a completely farfetched possibility. There does seem to be a correlation between bitcoin’s price and key futures market events.

Meanwhile, bitcoin’s price has been decreasing since 03:00 GMT, after hitting £8.2k ($11.7k) on the major exchanges. This represents a double top at this price level since Monday — a potential bearish sign — and this development is supposedly evidence of manipulation, according to this complex theory.

Even if such a hypothesis is wrong, many people are expecting an impact, which can escalate any small movements into panic sells. Follow Twitter to analyse traders’ sentiment — Litecoin’s founder Charlie Lee created a nice thread — and stay alert!

WHAT CAN HAPPEN NEXT THEN?

After a week of sideways trading, what can we expect this weekend?

Average prices for cryptoassets are at exactly the same level they were on Monday — some impatient traders are saying this asset class has become as boring as traditional stocks! Others are using this time wisely to better their trading techniques and learn more about the fundamentals.

Yesterday we recommended utilising the market’s temporary tranquillity to learn more about it and analyse your previous trading patterns. As a more direct approach, you can also try to outsmart other investors — which is notoriously very difficult — with help from the latest technical forecasts.

It’s Friday though, so let’s look at another route. You can subtly tell others we are in a bubble by painting your fingernails with different cryptoassets’ logos like Katy Perry did, or follow John McAfee’s trading recommendations (or potentially scams! for a bit of adrenaline!

As a safer alternative to dabbling further in the market, you can refine your crypto joke collection, including classics such as how “Bitfinex are on the brink of providing the fifth bailout for Bitcoin”! On a serious note though, move slowly, protect your profits and keep a watchful eye on the markets!

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

Rumours are leaking out that China will announce plans for a centralized cryptocurrency, with an aim to replace the M0 money supply, i.e. coins and notes in circulation!

The UK Government has launched a £19 million fund to invest in emerging technology, including distributed ledger projects. Check out the details here!

Robinhood, a popular trading app famous for its zero commissions policy, is launching bitcoin and ether trading! “Extremely bullish news”!

WHAT TO READ TODAY

An insight a day could give you more profits to play

If you have been struggling to follow the Tether and Bitfinex saga, here’s a report quantifying the ‘effect of Tether’. No need to be Bitperplex’ed!

If you have been struggling with the fact that the cryptosphere is even more dominated by men than the technology sector in general, here’s “why women can be the future of cryptocurrency”!

If you have been struggling to understand why South Koreans are so addicted to crypto, here is the “crypto craze explained by Seoul’s largest investor”!

  • CBOE
  • Litecoin
  • Charlie Lee
  • Scams
  • Tether
  • China