Market report

ANOTHER BUMP IN THE WALL

London Block Exchange

1st March 2017

Only 10 projects are in the green amid a ‘no-trade zone’ sentiment

ANOTHER BUMP IN THE WALL

Only 10 projects are in the green amid a ‘no-trade zone’ sentiment

Most traders feel like we are in a ‘no-trade zone’ these days. Even the historically active Twitter version of the ‘Wolf of Wall Street’ — who is not actually Jordan Belfort — declared he wasn’t trading yesterday’s chop, as the top 100 projects dropped 5% on average.

The overall drop in prices — with the total market cap diminishing 7% — seems to be related to bitcoin failing to break above £8k ($11k). However, some are predicting that the bulls will continue to pump the prices in case this falling wedge fractal plays out successfully — which it seems like it will, at least when looking at shorter timeframes.

Especially considering the fact that CFTC, the US regulator for futures, has just lifted a ban on crypto trading among employees — as long as they don’t invest in futures regulated by CFTC themselves, margin trade, or pursue inside information. Watch out for liquidations!

WALL STREET’S COMFORTABLY NUMB

Established players are starting to feel unsettled by the rise of cryptoassets

Wall Street was trying to avoid cryptoassets by playing the ‘blockchain is more important than the underlying incentives which sustain it’ card. Especially since Blythe Masters — an ex-JP Morgan executive, notorious for creating some of the credit default swaps which fuelled the last financial crisis — joined DAH in 2014 and started selling blockchain solutions to banks.

But it seems the incumbents have at least formally accepted the risks of cryptoassets — with JP Morgan itself acknowledging that cryptocurrencies are a ‘risk factor’ to traditional finance in its 2017 annual report. This is the ultimate disruption alert and a further bullish sign for the space.

Nevertheless, we must keep highlighting the bears who predict bitcoin’s price to be around £2.2k ($3k) by June. We don’t follow such ‘artistic analysis’, as it seems cryptoassets haven’t reached their ‘Windows 95 moment’ yet and institutions who started investing in cryptocurrencies, tokens and start-ups over the last year have strong incentives to keep propping up bitcoin’s price using “only a fraction of the value of their investments”!

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

As mentioned yesterday, IOTA is attracting some criticism. Here’s a good summary on the issue and on why “cryptographers urge people to abandon IOTA”.

The Crypto Virtual Summit starts today and lasts until March 4th. Check the line-up of speakers and get your free ticket here — but be mindful of any ‘secrets revealed’.

The US SEC has been sending subpoenas to several people and companies behind the latest ICO craze, requesting information on the crowdsales and their investors!

WHAT TO READ TODAY

An insight a day could give you more profits to play

Upfront Summit 2018 had some funny moments, but also interesting talks like this one on ‘The Economics of Cryptocurrencies’, Here is the direct link to the slides.

The above presentation was made by Tom Lee — co-founder of Fundstrat, a Wall Street fund — who just predicted crypto markets should recover by the end of March!

If you are still wary of crypto market volatility after yesterday’s newsletter, read Bitmex’s CEO coverage of VIX’s futures crash.

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