The big talking point of last week was the large sell off in cryptos along with the simultaneous drop in global equity markets.

Interestingly, the media (never ones to overuse hyperbole) decided that this drop in crypto represented a “crash”. However, for those of us more familiar with the space, a “crash” would have to be quite dramatic. The reality was that the immediate move represented a 4% fall in the price of BTC, something that could be described until very recently as daily crypto market volatility.

The important thing, though, is that fast forward five days from the move lower and BTC has already rebounded up and away from its low whereas equity markets continue to languish in the turmoil brought on from last week. There is still some general concern in the market about general liquidity with volumes remaining subdued but then again this whole year of 2018 which promised so much has on the whole been disappointing.

Nevertheless, technology and the markets evolve so quickly now that who’s to say what is around the corner. There is a chance that the end of 2018 remains as it has been to date, but there is also the chance that the end to the year is strong and the bull market resumes.

BTC Price:  $6,649

Last 7 Days: +0.87%

1 month:  +2.18%

12months: +14.8%

BTC commentary:

The last seven days was full of the usual volatility that we have become used to with Bitcoin, however last week’s plummeting price was interesting as it appeared to correlate with a worldwide drop in equity markets. BTC low point came at a price of $6,236 holding nicely above our suggested support of $6,140 and $6,000 as muted in our past commentary.

After the low, BTC has steadily rallied as has the daily volume whereas interestingly the equity markets have continued to sell off.

BTC volume:

7th October: $3,279,075,388 (BTC price of $6,588)

15th October: $3,857,632,711 (BTC price of $6,649)

17.6% increase in trading volume in the last 7 days

ETH price: $217

Last 7 Days: -4.8%

1 month: +0.94%

12 months: -36.8%

ETH commentary:

For the most part, not a huge deal has changed for Ethereum in the past seven days.  The short-term trend has been sideways with a longer term downtrend visible and there still remains a real possibility that the brief spell XRP spent in the number two spot by market cap, becoming a more permanent fixture if the positivity for XRP continues.

ETH bottomed out last week at a price of $189.40 which brought it incredibly close to the low in early September ($171.13) although subsequent price improvement has been marginal to say the least, particularly in comparison to other cryptocurrencies. (Previous low for ETH was $149.80 in July 2017.)

Last 7 days big market movers:

Moeda Loyalty Points        MDA    UP 259%    Price: $2.50

Vitae                                VITAE    UP 191%    Price: $3.26

Clubcoin                           CLUB    UP 135%    Price: $1.51

Market cap. dominance:

BTC: 54%

ETH: 10%

Other Altcoins: 36%

Past week talking points:

• The IMF states that rapid growth of Bitcoin and crypto markets will impact the global financial system
• Despite the dismal performance of the market in 2018, 20% of hedge funds launched this year have been crypto-focussed according to San-Francisco based Crypto Fund Research
• Self proclaimed stablecoin Tether continues to draw speculation on its motives and activities after a 6% move in its peg over the weekend
• Research published by a group of European scientists has concluded that Bitcoin markets are experiencing a phase of accelerated maturity which will allow them soon to become viable alternatives to any traditional financial market
• Tron continues to gain momentum after CEO and founder of the Tron Foundation muted a major partnership between Tron and a billion dollar valuation magnate

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.