October 29, 2018   Market Commentary

October 29, 2018 Market Commentary

As the month of October comes to an end, the digital asset market was one of the least volatile off all major asset classes.  The top story was undoubtedly the NASDAQ and the US Equity indexes.

During the past two weeks, the Digital Asset Market had less than a four billion dollar range which is just under a two percent change.

 

Bitcoin – October 2018 chart

(courtesy of Barchart.com)

 

Total cryptocurrency market capitalization

(courtesy of Coinmarketcap.com)

This would have seemed unfathomable to me and many others last year, but these are the markets of today.

 

NASDAQ 100 Futures – October 15 – October 29

This index has dropped 11% in just two weeks

 

he NASDAQ 100 Futures – October 2018

Has sold  off 13% in the month of October.

 

 

Gold Futures – October 2018

Gold has risen 5.4% during the month of October.

With BTC and the entire digital asset class acting rather tame so far this month, this in my opinion is bullish for the blockchain industry.

But…

There are three spreads I watch very closely to help gauge the health and strength of the digital asset markets.  DOGE, LTC and ETH. I look at these three as they are the primary non Bitcoin pairings for $PAC.

 

DOGE – 3 month chart

(courtesy of Coinmarketcap.com)

This spread has given up some gains in October, but DOGE-BTC has weathered  the BTC dominance storm well.

 

LTC-BTC – 3 month chart  

(courtesy of Coinmarketcap.com)

This spread needs to hold the major support levels set in September.  Since LTC is listed on Coinbase, which in my opinion, is as good as cash, just as Bitcoin is.  Obviously the market feels differently, but this is one I will be watching very closely.

 

ETH-BTC – 1 Month chart

(courtesy of Coinmarketcap.com)

 

ETH-BTC – 3 month chart

(courtesy of Coinmarketcap.com)

Ethereum has had exceptionally low volatility vs Bitcoin during October.  The low set in September of .027 will still be key support. This in my opinion is the most important spread to watch regarding the overall cryptocurrency market.  ETH is a proxy for many of the ICO’s of 2017 and 2018 and a rally here will show renewed support in the blockchain funding.

 

 

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