Weekly Market Performance Report

Transcription

1 Weekly Market Performance Report 2nd July 8th July 2018 Cryptocurrency Market Performance Previous week s overview (25 th June 18 1 st July 18) Cryptocurrency (As on 1st July 18) Week s end price (1 st July) Week s start price (25 th June) % Change Bitcoin (BTC) $6, $6, % Ethereum (ETH) $ $ % Ripple (XRP) $0.46 $0.48-6% Bitcoin Cash (BCH) $ $ % BTC showed a gain of 6% on the 24th June, however, this gain was short lived with all the currencies falling to a range of -6-14% within 4 days (28th June). Toward the end of the week (29th June 1st July), all the major cryptocurrencies namely Bitcoin, Ripple, Ethereum & Bitcoin Cash increased in value in the range of 1%-11%. However, the week ended with the majority of currencies in the red except Bitcoin which showed a gain of 2% on its week s opening price (25th June 18). Current week s overview (2 nd July 18 8 th July 18) Cryptocurrency (As on 8 th July 18) Week s end price (8 th July) Week s start price (2 nd July) % Change Bitcoin (BTC) $6, $6, % Ethereum (ETH) $ $ % Ripple (XRP) $0.49 $0.49 0% Bitcoin Cash (BCH) $ $ % This week s cryptocurrency market has been positive and held off further selling pressure. Total market capitalization is holding just below $280 billion at the time of writing (8th July). After finding its footing last week at the $5,700 level, Bitcoin s price has since started to exhibit some momentum. Bitcoin is hovering around the $6,800 mark at the time of writing. While it is experiencing almost no movement either up or down, it has still managed to keep this week s gains - as it is up around 4 percent since Monday (2nd July). The week started with BTC showing a gain of 4% on previous day s price (1st July). At the time of writing, all the major cryptocurrencies, except Bitcoin Cash, are trading in the green.

2 Possible reasons for market movement The indecisiveness of the markets has been mirrored by a mix of positive and negative news surrounding cryptocurrencies. French government official Jean-Pierre Landau, has called for a hands-off approach to cryptocurrencies, whereas Germany s Ministry of Finance has adopted a more cautious approach, saying that state-issued digital currencies are associated with not well understood risks. On a more positive side, there have been news of two key professionals joining the blockchain industry: 1) The Winklevoss twins Gemini crypto exchange has hired NYSE Chief Information Officer Robert Cornish 2) Facebook has seen it s Director of Engineering Evan Cheng move to the same position at the company s blockchain team Developments over the week in Cryptomarket 1) On 6th July 18, Switzerland's principal stock exchange has announced that it is developing a blockchain-based platform to tokenize traditional securities. In an announcement, the SIX Swiss Exchange said it will build the new initiative dubbed SIX Digital Exchange (SDX) on a distributed ledger, utilizing its technical expertise in operating a large-scale financial infrastructure. 2) On 6th July 18, Chinese technology company Xunlei Limited, known to some as the BitTorrent of China, announced that it has launched a new distributed file system aimed at supporting blockchain platforms. The ThunderChain File System (TCFS), as well as three ThunderChain Request for Comments (TRC) standards will help support blockchain development.. The new file system, in particular, aims to combine features of existing platforms like IPFS and filecoin, while adding new security and flexibility tools. 3) Coinbase has created Coinbase Custody: a service that helps to store institutional funds-solving one of the biggest issues that institutional investors face. Which means big institutions know where and how to store their cryptocurrencies without the fear of their funds being stolen by cyber thieves. 4) Amsterdam-based speed trader Flow Traders NV, one of the largest securities traders in Europe, has entered the cryptocurrency market, as reported on July 5th. The arrival of such giants is a clear indication that the larger players are taking the plunge and these lower levels are unlikely to remain for long.

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4 Bitcoin (BTC) Trend Since 2nd July 18, the price of Bitcoin has remained relatively stable in the mid-$6,000 region, recording slight volatility in the range of $6,300 to $6,700 region. But, throughout the five days (2nd July - 6th July), Bitcoin has also struggled to initiate a major movement on both the upside and the downside, primarily due to the low daily volume of BTC. Bitcoin price formed a strong support base near $6,450 and jumped higher against the US Dollar. Bitcoin price is gaining momentum above $6,600 against the US Dollar. BTC/USD could accelerate gains above $7,000 to target the $7,250 level. Bitcoin reached an intra-week high of $6,856 on July 7th. Bitcoin price has increased over the week and is trading marginally below $6,900 at the time of writing (8th July 18). BTC price surged from $6, at the the beginning of week (2nd July 18 ) and reached $6, by 8th July, a increase of 3% over the week.

5 Ripple (XRP) Trend The price of Ripple (XRP) has remained stable over the week and is now trading in the range of $ $0.49. The market cap now stands at $19,332mn. The total week s performance settled at breakeven. The price remained stable throughout the week with no major fall in price. Ripple (XRP) is expanding its presence in the global cryptocurrency market. The third biggest coin by market cap is reaching new investors on at least five crypto exchanges. On 7th July 18, XRP debuted on Independent Reserve, Australia s first officially regulated crypto exchange.

6 Ethereum (ETH) Trend ETH increased this week and traded at around the $460 - $500 mark this week. The ETH price against the US dollar has surged over the week. ETH price traded higher recently and broke the $470 resistance zone against the US Dollar. The match is presumably going to move over the $490 and $500 obstacle level to get upside moment. The total week s performance settled at 4%. The price was $ on 2nd July and gradually increased to $ towards the end of the week (8th July).

7 Bitcoin Cash (BCH) Trend Bitcoin Cash was hit hard on Monday, up over by 6% than what it was on 1 st July, as the price firmly moves above $750 mark. The Bitcoin Cash price found support around $700 and recovered against the US Dollar. BCH/USD could accelerate gains above the $780 level in the near term. It was a tough early week for BCH, with the price falling significantly. The total week s performance settled at -1%. The price fell from $ on 2nd July to an intra-week low of on 6th July, a fall of almost 6%. However, the digital coin gathered itself up and surged to $ at the time of writing. The total market capitalization of Bitcoin Cash is close to $13,252mn at the time of writing. Bitcoin Cash (BCH) that is also dubbed as Bitcoin s best fork so far is busy working on its platform innovation. On completion, this on-going project could help BCH survive Bitcoin s current relentless fall. Bitcoin Cash undoubtedly has untapped potential to rise above the rest of the altcoins and change the course of crypto history by becoming the first forked digital asset that s more profitable than its core project.

8 Top Ten Cryptocurrencies (1 st July 8 th July) Cryptocurrency Week s price ($) (8 th July) Week s Price ($) (1 st July) % change Market Cap ($mn) (8 th July) Market Cap ($mn) (1 st July) % change Bitcoin (BTC) 6, , % 117, , % Ethereum (ETH) % 49,633 45, % Ripple (XRP) % 19,166 18, % Bitcoin Cash (BCH) % 13,290 12, % EOS (EOS) % 8,109 7, % Litecoin (LTC) % 4,904 4, % Stellar (XLM) % 3,933 3, % Cardano (ADA) % 3,887 3, % IOTA (MIOTA) % 3,146 2, % TETHER (USDT) % 2,625 2, % The market cap of cryptocurrencies is a product of the volume of the currency and its price. The top 10 cryptocurrencies comprise almost 81% of the total market cap of cryptomarket at the time of writing. Over the week, the market cap of top 10 cryptos increased from $210,915mn on 1st July to $225,774mn on 8 th June, an increase of almost 8%.

9 New coins on the block (2 nd July 8 th July) In this modern age where the number of cryptocurrencies in existence is well over 1,500, with new ones being frequently developed, it seems like we hear about a new virtual currency every day and as cryptocurrency users looking to invest in a new cryptocurrency, we often get to the point where we are not sure when we should invest and what s the best option to put our money in the market. However, below is a list of new coins launched this week: Cryptocurrency Launched date Price ($) 24h Volume ($mn) Cryptocurrency Launched date Price ($) Karatgold Coin (KBC) 6th July $ OTCBTC Token (OTB) 3rd July $ Essentia (ESS) 6th July $ Wowbit (WWB) 3rd July $ Qurito (QURO) 6th July $ Cardstack (CARD) 3rd July $ h Volume ($mn) FCoin Token (FT) 6th July - - KanadeCoin (KNDC) 3rd July $ SEER (SEER) 6th July $ Bob's Repair (BOB) 3rd July $ POPCHAIN (PCH) 6th July $ CarBlock (CAR) 3rd July $ FansTime (FTI) 6th July $ ZINC (ZINC) 3rd July $ Coni (CONI) 6th July $ Dorado (DOR) 2nd July $ Project Pai (PAI) 5th July $ TaTaTu (TTU) 2nd July $ Thrive Token (THRT) 5th July $ Egretia (EGT) 2nd July $ GoNetwork (GOT) 5th July $ chain (ZCN) 2nd July $ Clipper Coin (CCCX) 5th July $ Mainframe (MFT) 5th July $ On.Live (ONL) 5th July $ Forty Seven Bank (FSBT) 5th July $

10 Conclusion This week has been neutral for the market. All the major cryptos ended in green except Bitcoin cash which witnessed a fall of -1% over the week (2nd July - 8th July). Bitcoin rallied at the beginning of July, giving a positive jolt to the digital coin market that had lost about half of its value since early May. This week, there was a downside correction below the $6,700 support in Bitcoin price against the US Dollar. The BTC/USD pair traded below the $6,500 support level, but further declines were protected. The $6,400-$6,450 support zone acted as a support and prevented declines. A support base was formed and the price jumped above the $6,600 and $6,700 resistance levels. Bitcoin has gained some momentum and is trading in the range of around the $6,900 mark at the time of writing. Since the last two weeks, Bitcoin ended the week in the green and has surged by 8% in the month of July, giving a sense of stability to the cryptomarket. However, if cryptocurrencies witness a flood of institutional investing, then the resistance levels will be easily crossed. While the retail investors are largely staying away in fear of a further fall, the professional traders are using the current downtrend as an opportunity to enter the crypto market cheaply. Amateur investors, on the other hand, want to make quick profits. Once the price starts falling, these investors tend to panic sell. The combination of market manipulation and panic selling may be a reason behind the current market trend. One might argue that the market is going through its long-term growth correction, but there is a chance it could be in for a deeper fall. The market could swing either way. Nevertheless, cryptocurrency is here to stay. While most of the current coins might disappear in the years to come, a few of these startups hold the potential to disrupt the entire financial system. Some analysts are very bullish on this market and say it is still in the nascent stage with very few investors. Once the cryptocurrency market goes mainstream, the market cap will grow and so will the prices of coins. However, given the volatility of the cryptocurrency market, the price movement of cryptocurrencies can change drastically based on market conditions. As such, it is important to actively observe the market to find any irregularity and change in trading conditions.

11 Disclaimer: This publication is provided by Invsta in good faith for general information purposes only. Information has been prepared from sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Information, analysis or views contained herein reflect a judgement at the date of publication and are subject to change without notice. This is not intended to constitute advice to any person. This does not constitute advice of a legal, accounting, tax or other nature to any persons. You should consult your tax adviser in order to understand the impact of investment decisions on your tax position. Past performance is not indicative of future results, and no representation or warranty, express or implied, is made regarding future performance. Cryptocurrencies are a highly volatile, high risk investment in which the value can change significantly. Before making any investment you should consider your own risk tolerance level and personal financial situation.