The CryptoCorner April 10th 2018 "Bottoms Up?"
Big news this week Bloomberg reporting that NY based Soros Fund management has received internal approval to trade virtual coins. We know the capital gains are too much for even the great Soros to pass up. Why not right? Money is money, digital, metal, etc…One thing we are certain that this announcement is no leak rather we know bigwigs always talk their book after they have the position, so the next few weeks price action will be very interesting.
Also out this week is CCN reports that another elite titan family, the Rockefeller family and their venture capital arm are delving into the cryptocurrency space. In a joint venture with Venrock and Coinfund, the firm plans on helping entrepreneurs with blockchain based businesses. Word on the street is the Rocks have nearly $1Trn in net worth…a far cry from grandpa Rock “The Snakeoil Salesman”
Will Bitcoin bounce, technically we are near the lows and from our trading lens, Bitcoin is bullish as long as new lows aren’t made and that is if you are a short term player. Longer term, we will consistently be a buyer as we know fiat is not the answer and digital money is the future and Bitcoin continues to be the winner.
Other news out this week was that the WSJ reported that Coinbase has contacted US regulators about registering as a licensed brokerage and electronic trading venue. Seeing the approval of the SEC in order to offer digital tokens. Obviously this is about increasing revenues and considering the backing and the oversight as well as the privacy deal that Coinbase no doubt cut with regulators means most likely approval is coming down the road.
In another story word out of Monero core developers they are seeking upgrades, we’ve read 2 rationales for the reason, that is to increase minimum ring size to 7 from 6 and to drop a spanner in the works of ASIC miners, whom are most likely gaining a larger mining foothold. They aren’t calling it a Fork persay but it is clearly intended to block ASIC rigs and keep the autonomy of its network. Monero has stated that an upgrade is in order and NO NEW COIN will be created. Will see how this all goes down, should be interesting. Ethereum is also at risk from these new ASIC miners out of Bitmain, which is why we fully understand the quest for a consensus proof of work algorithms which are basically a one miner one vote protocol where as proof of stake is based upon coins earning the majority of rewards.
An attack on a proof of work system is possible given the power of ASIC mining hardware and Bitmain the player knows it full well. Where as the flip side in the proof of stake protocol it would be quite costly based upon the price to acquire coins and thus even if you do, we suppose you just devalued yourself. For those that don’t know what ASIC is it stands for Application Specific Integrated Circuit. Once again this battle goes to show you a lot of things are being tested as the ecosystem grows, but it is in these tests that upgrades and qualified adjustments are made across the entire system.
The difference and one thing that I think sets a decentralized open source system apart is the fact that ideas are openly and almost instantaneously enacted. With a centralized control system, there are too many cogs in the wheel, too many boxes to check to get approval, that is why we are so bullish on Blockchain and Cryptocurrencies.
In other Crypto news, Bithumb SKorea’s largest exchange saw massive profits in 2017. Its parent company BTCKorea is public and in an earnings release reported Bithumbs 171x increase in revenue. Considering the firm no doubt keeps some profits based in Crypto, it will be interesting to see their earnings for 2018 if the price doesn’t recover.
CCN also reports this week that, Gemini adds block trading to their exchange which will allow for single large order or transactions and will be posted with a 10 minute delay. Some traders will say this ruins transparency, but we say, it’s a market function you will have to live with. The fact remains, he who holds the most money controls the power, financial or Crypto markets are no exception.
Ok so let’s get to this weeks settlements. We are thinking long and hard for adding EOS, we spoke of EOS a while back and many call it the Ethereum killer. We will continue to monitor it and most likely we will advance to adding coverage and even add it to our CC Index. Obviously this of course is an ongoing process and coin volatility is a concern, however the dynamics of Cryptocurrencies and their inherent volatility are something we are well accustomed to. Ok without further adieu here are the settles for Friday April 6th 2018.
As you can see the losses continue across the board, albeit at a slower pace than the prior weeks. Bitcoin Cash and NEO are the big losers down 12.7% and 11.2% respectively. Bitcoin down marginally with a 4.6% loss and near massive $6k support. Short term traders will most likely be buyer vs that level and quick to bail on any attempts below. Longer term you know where we stand. As for our CryptoCorner Index, it settled the week at $2537.28 down $129.31 or 4.8%:
As for the top wallets only the largest wallet sold on the week dropping 16458 BTC but continuing to be valued over $1.1 Billion dollars. The next 3 wallets were unchanged and the 5thspot added 5901 BTC on the week, pushing the 100k BTC total.
We will continue to monitor the top wallets as to any indication of big moves and correlations to market movements.
We aren’t going to post to many technical charts but we will put up Bitcoin and EOS as of today 4 11 18. Bottoms up is the question?
As far as EOS, its put in a nice base and we feel $7.95 is a big level nearby:
We hope you enjoyed this week’s CryptoCorner, we look forward to continuing the ever expanding blockchain and cryptocurrency world. We strive to not waste your time and rather point out things that we deem important in the continually evolving space and we hope that point stands out. We understand the plethora of updates that exist and we are glad you have chosen to stick with us. Please forward this to your family, your friends and have them sign up for the letter and please go read our other weekly global macro letter that is updated each week at our blog www.econemotions.com and don’t forget to hit the subscribe button! Cheers!
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