Market report


London Block Exchange

6th February 2017

It will take a significant move for bulls to gain momentum again.


It will take a significant move for bulls to gain momentum again.

As we wrote yesterday, the crypto markets could face trouble if bitcoin broke down the key £5.7k ($8k) support level. That was confirmed right after the newsletter was sent out to our Premium members and, by 09:00 GMT, the markets had continued their decline.

So, after 12 hours of sideways trading, the total market cap continued to drop from its January 8th top, broke the long-term 2017 bullish trend line and is now sitting below £205 ($290B) — a 30% drop from yesterday and a level not seen since November 30th!

It might seem like we’re repeating ourselves, but it’s important to point out that either £4.3k ($6k) was the dip or, whenever we approach that psychological round number support again —a widely documented effect — it’s time to look closely at bitcoin’s charts for direction.


Prepare for the worst and capitalize on all possible scenarios

Out of the 100 top cryptoassets, only XPLAY — number 82 on the list — is up and that may just be due to a pump and dump scheme. To give a snapshot of the current free fall, ether is sitting at an average price of £415 ($580) and Ripple’s XRP is at £0.4 ($0.6).

To compare these numbers with bitcoin’s 69% drop from its all-time high — ether has dropped 59% below its all-time high, XRP 84%, bitcoin cash 82%, litecoin 71% and Tron’s TRX has plummeted a whopping 91%! You can use the OnChainFX website’s handy feature to compare it for yourself here!

Overall, however, as long a project has solid fundamentals — e.g. a wide community of developers, a robust network and institutional interest — then the current bearish momentum will eventually fade away and the good ideas will resume their adoption.

Remember that crypto markets also move much faster than equities. As Naval Ravikant, founder of AngelList and a popular personality in the crypto world, just said: “crypto went from the ‘Netscape Moment’ to the ‘Dotcom Bubble’ to the ‘Crash of 2000’ in months”!

The stock market has also just had one of the worst days in the recent months — losing its 2018 gains in minutes — and some say the equities bubble is due for a long awaited correction. On an optimistic note, it’s possible investors are selling that top to buy bitcoin!


Filter the noise and stay ahead of the pack

The Tether controversy has shaken the markets. But Ari David Paul, CEO of BlockTower Capital, says the claims have been weakened by this dip!

The Chairman of the U.S. Securities and Exchange Commission, Jay Clayton, is testifying before the United States Senate later today on ‘virtual currencies’ regulation! Here’s the full statement and here’s a good summary. Bullish news!

The popular Ledger wallet manufacturer has just discovered a new vulnerability. Here’s an overview and all the details on how you can protect yourself!


An insight a day could give you more profits to play

Some good risk management insights and lessons to take forward for the upcoming crypto bull run — “we are moving from speculation to implementation”!

Some thorough analysis on the story of Ripple — from the clashes between founders to the technology behind the famous project — the token does not share “any interesting characteristics with other crypto tokens like Bitcoin and Ethereum”!

Some insight into the blockchain projects that are trying to defeat Airbnb, Uber and other platform companies — “they just need users first”!

  • Bears
  • XRP
  • tether
  • Ledger
  • Blockchain