Many events unfolded in the past week which need to be timestamped and placed as dates of importance for those with interest or exposure in the cryptocurrency markets.
The Digital Asset Market shed 3.8% over the past week
Since March 18th the Cryptocurrency Market is up 27%
Remember March 18, 2018. This date will be mentioned along with many data points as I continue this writing today, as well as in the future.
As a refresher, these are the other major dates of importance since I began my writings for PAC:
December 17, 2017: The first day of trade for CME Bitcoin Futures, Also the all time high in BTC price.
January 7, 2018 : Digital Commodity Market All Time High in Price, 875 billion Dollars.
February 6, 2018: This year’s low price for the cryptocurrency market, 276 billion dollars.
March 18, 2018: A retest of the year low in the cryptocurrency market, 276 billion dollars. Also, Daily trading volume hit a year low at 12 billion dollars.
Overall, the past week the cryptocurrency market did shed 4.4%, but has had a sharp rebound off the Sunday evening lows. Also, of note, G20 comments, released late Sunday evening, appeared to be not nearly as negative as some were led to believe and put a nice spring bottom in the market, just as it retested the yearly market cap low.
The G20 meeting date was no surprise, anyone who has Google could look on a calendar and make note, but the way it unfolded over the weekend, you have to start looking at probabilities. On Friday March 16, just as most US markets are closing for the week, the crypto market was 331 billion dollars. Over the weekend, the market proceeded to go lower and Sunday March 18, right around 6pm EST, the market touches the 2018 low at 276 billion just as US Futures markets re open for trade.
24 hour trading volume for the digital commodity asset class reached a year low, 10.8 bb, March 17 – 18. Just hours later the yearly low in the total market cap for the cryptocurrency space was traded, and wouldn’t you know by the time US equities open at 9:30 am EST trading volume was back up to 19 billion dollars, and it had recouped almost all of the losses incurred over the weekend.
Major Market Recaps for the past week:
US Equities: Down 2.4%
VIX: Up 15%
US 10’s: Unched
ED Rates: Relatively Flat but did make a new multiyear high
Digital Commodity: Down 3.8%
Gold: Down .4%
Many investors and traders in this space are of the belief that regulation is bad for markets. I am not one of those people. If people raise money for an idea and stick to the business plan, (whitepaper,) and fulfill the promises, whether that investment increases or decreases, that is for the market to decide. Those who should worry are the firms/coins, who raised outside capital and simply took advantage of the public and had no real plans to do anything they spoke or wrote about.
Regulation will help mitigate and help eliminate the fraud and deception by those who do not have investors best interest on their mind. ICO’s basically created a market for companies and coins to raise capital with minimal regulation as compared to a bond offering or an equity IPO. Some of the white papers I read months ago had 12 month plans of being, “A top 10 on Coin Market Cap.”
Seriously, its great to want to be among the best, but what is the plan, they had no plan listed.