Why is the traditional relationship between alts and bitcoin not holding?
What a day — and what a weekend lies ahead. As we’ve seen, weekends are usually tough days for the markets so keep an eye on your charts and our latest Telegram news-only channel as it never sleeps. To begin, we are still bearish — and bitcoin can finally head to to £4.1k ($5.7k) this weekend. However, the space is far from a “multi-year bear trend”.
The volatility and opportunities in this space are too tasty for bigger players to neglect — so the claim goes. Other markets like corn have the same daily volume and viability. Nonetheless, we prefer a different kind of crop. Bear in mind, we are still trading sideways. The top 100 projects by market cap only moved 0.5% over the past 24 hours. Is something brewing?
In the past, whenever bitcoin traded sideways, alts boomed. That hasn’t been happening for a while now. A possible explanation is that all alternative cryptoasset cycles are a result of large players’ attempts to accumulate more bitcoin — a debatable claim, but also one which is easily evidenced. These players only feel ready to pump some alts after bitcoin performs well. Read the whole analysis here.
Some say that society’s diminished trust in established institutions is fuelling the crypto boom. We’ll focus on pointing a potentially problematic situation that took place yesterday — the India non-ban FUD. Problematic, as both mass and social media prey on our cognitive biases — especially the ones that are important for traders to overcome.
We could also talk about the extreme narrative revolving around Verge’s attack, Coinbase’s announcement hype, and even dive into the concept of ubiquitous forks — can they exist or not? It depends on who you ask. Additionally, crypto funds are raising millions with fragile pitches. There’s lots to cover, however, the news in India were the biggest instigators to mass confusion.
The Royal Bank of India confirmed that banks couldn’t work with entities who deal with cryptoassets — a common tactic to brake (and break) the space. It may be perceived as an ineffective tactic since it’s been going on for some time without causing any harm.
These are the kind of news that scare away the remaining weak-hands that are still holding. To conclude with a silver lining, could this fuel the necessary capitulation before the expected market reversal? For that to commence, we might still need to wait until mid-April, due to the U.S. income-tax filling deadline. Will we finally see a bottom by April 15th?
Yesterday was Satoshi Nakamoto’s birthday. The anonymous creator(s) of Bitcoin, who chose the symbolic date — April 5th, 1975 — to resemble the 1933, U.S. citizens’ ‘gold handover’. Conversely, in 1975, gold ownership was allowed again.
There are no more major crypto conferences today or this weekend. This may be a good sign, as the “number of conferences is the lagging indicator of a bubble”. Well, except for TFE in Washington D.C. — on blockchain technology and the future of economy. Follow here.
Tomorrow you can enjoy your Saturday by catching up on all the major events that took crypto by storm in this first quarter of 2018. Brave New Coin’s Josh Olszewicz writes about regulation, technology, the bearish market, and what can lie ahead.
Daniel Jeffries is a popular author, Crypto Twitter user, and a wordsmith. He has written several highly applauded Medium articles on cryptoassets and blockchain. His latest — Five Keys to Crypto Evolution — tackles the concept of ‘how crypto can win the battle for the future’.
Jay Clayton is the Chairman of the U.S. SEC. At Princeton University yesterday, he rejected the idea, which stated that all ICOs are fraudulent by saying they are “absolutely not”. Additionally, he argued that almost all utility tokens are securities and are thus subject to regulation.
The Cryptoconomy Podcast is a daily show that reads out loud popular crypto articles for your convenience and provides interesting commentary on the space. Nick Szabo’s blog posts from 2007 and Chris Dixons’ ‘why decentralisation matters,’ are a couple we suggest that will bring music to your ears!