August 26, 2018 Market Update

August 26, 2018 Market Update

 

 

During the past seven days the digital assets market staged a small rally adding 8% to the total market cap, which now sits at 226 billion dollars. The cryptocurrency market added more than 20bb to its valuation with Bitcoin leading the way, rallying 8%. The Bitcoin Market share, or dominance factor was unchanged and it currently 52.7%.

 

Digital Asset Market, One Week chart courtesy of Coinmarketcap.com

 

Digital asset market minus Bitcoin, One week, chart courtesy of coinmarketcap.com

 

 

The story of the week was in US equities and not cryptocurrencies, as the NASDAQ set an all time high this week crossing the 8000 mark for the first time.

NASDAQ 100 Futures, One Year, chart courtesy of CQG

 

Even Gold managed to rally a few dollars as the Dollar Index Future decreased a few pips

Gold Futures, One month, chart courtesy of CQG

 

 

Dollar Index Futures, One Year, Charts courtesy of CQG

 

It would appear looking at these asset classes that the capital flows are making their way back into many different asset classes.

 

Please note the Dollar Index, as the media continues to push the story of Digital assets as commodities and they are priced in Dollars, to help build a negative correlation between crypto and the DX (Dollar Index).

 

The key support and resistance bands in the broader digital commodity markets are 190 billion on the downside and 250 billion on the upside, with the pivot point, (area which many funds flip from long to short and vice versa,) is right near the last trade of 225 billion.

The Bitcoin ETF remains a story in digital asset portfolio managers and traders eyes, but as I have said before, it is coming, the votes are in, and we are in a time where the banks, who will be issuers, are still accumulating.  We may continue to see a rise in BTC and BTC dominance until the announcement is made official, but this is only the tip on the iceberg.  There will not be one ETF, nor two, but four within the first month.  The desire of the managed money is actually a diversified cryptocurrency ETF.  Do not be surprised if all of the Coinbase currencies are some of the first on this list.  This diversified ETF will start with 5 or 10, then over the next year they will work their way into the top 50 and 100 projects eventually leading to a similar set up as the NASDAQ 100, Dow Jones 30 and S&P 500.  I cannot publicly comment on the times and or coins, but call it a strong “feeling.”

With not a lot of new stories in the cryptocurrency world this week, I will keep the blog short and sweet.

I will continue to watch key pairings, such as BTC – ETH, BTC – LTC, and BTC – DOGE

I am also watching the market caps of certain projects as there are some diamonds in the rough in my eyes.

Projects that have continued to make progress in the cryptocurrency bear market of 2018 are assets which are very interesting to me.

It would have been very easy for many projects to simply close up the proverbial doors this year and say they tried, but there a numerous names which have stayed the course and been very impressive.  Along the lines of venture capital, I would not be surprised if one day we end up seeing large entities just buying out certain blockchain projects and taking them private at what some would call large multiples.  I have learned to look at the new wave of crypto as businesses and not just coins, which has helped me in my valuations.

 

 

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