Market report

PAINFUL PRICES — PROFITABLE PUMPS

London Block Exchange

19th March 2018

Weekend manipulation continues to be one of the key issues of these markets

PAINFUL PRICES — PROFITABLE PUMPS

Weekend manipulation continues to be one of the key issues of these markets

We’ve mentioned the weekend dips, which are popular in cryptoasset markets, as they have occurred over 6 times since the beginning of the year. This Saturday was no exception. It’s good to note that over the past 24 hours prices have increased 8% on average across the top 100 projects. This may be in anticipation of a bullish stance for today’s G20 meetings.

As usual, bitcoin has been leading these swings — and is now back to Friday’s levels, sitting almost at £6k ($8.3k). However, it is important to note that one hour before the clocks struck midnight on Saturday, the time that defines the chart’s daily candles across the world, a possible bull flag pattern turned bearish.

Traders reacted promptly, and a major correction took place, erasing the 6% gains, which were achieved that day. The downtrend continued, and bitcoin decreased 13% between Saturday and Sunday — hitting the painful low of £5.2k ($7.2k). Meanwhile, altcoins suffered the most as they decreased 20% on average. This correction may have been caused by fears that altcoins will “struggle for awareness in the temporary advert-less era”.

IS IT WORTH IT TO FOLLOW PRICES?

An overview of what happened last month and what is coming next

One interesting note about cryptoassets is that their prices act as “content marketing to implant the mind virus” — as the majority of enthusiasts obsess over them. Behaviour as such may pull speculators into the market and create an audience that begins to follow the technologists, which are dedicated to building the infrastructure and its applications.

Hence why covering prices is crucial. Most importantly, hypothesising on what influences them (despite acknowledging the chaotic complexity of the markets and the benefits of trend following). In this regard, we strongly recommend reading this excellent piece by Chainanalysis on “The Great Bitcoin Price Dip: Its Causes and a Way Forward”.

If you are looking to find something else besides regulatory news and continued herd behaviour, let’s consider the following: the ‘Mt. Gox Whale’ says he didn’t influence bitcoin’s market prices, more liquidity is coming to the market soon, and the theory of the current bearish market hasn’t affected the long-term trend still stands — especially if you visualise the 2013 vs 2017 dips in this graph.

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

A British hardware company just announced it will build the largest bitcoin farm in the UK. They are raising £10 million to fund it. However, they state that after two years of inception, they will sell the equipment as well as the 1,280 BTC they’re expecting to mine.

Bitmex’s Research Blog released a new analysis on the USD Tether saga, detailing new evidence to support their previous hypothesis that Puerto Rico’s Noble Bank is Tether’s primary reserve bank.

While we wait for further insights from today and tomorrow’s G20 Finance Ministers meetings, it’s already positive to see the group’s watchdog — led by the governor of the Bank of England, is claiming that cryptoassets “do not pose risks to global financial stability”.

WHAT TO READ TODAY

An insight a day could give you more profits to play

Last Friday we covered two key developments in the space — Bitcoin’s Lightning Network and Ethereum’s Plasma project. Follow the links provided to find out why these two new technologies will change the space for the better.

We don’t usually share podcasts but when we do, we like to share them in pairs. Here’s Chris Burniske — one of the cryptoverse’s most popular investor and author — on “calculating value and risk in crypto investing”, and Albert Wenger, from Union Square Ventures, on technology, cryptocurrencies, and scarcity.

ICOs over the past month have been suffering from the bearish market and regulatory uncertainty. Coindesk reports a “12-month freeze on US token trading is just beginning” and an analyst is arguing that ether “meets any common sense definition of ‘security’”.

  • bitcoin
  • G20
  • Mt. Gox
  • ethereum
  • bitmex
  • coindesk
  • ICO