Market Wrap-up August 24, 2018
A week does not go by in the world of cryptocurrency without some kind of drama. Examining the events of the past week and observing the trends of the crypto market, our weekly Market Wrap-up aims to keep you informed of the latest happenings in crypto, even if you’re not the type to peek at your Blockfolio on an hourly basis.
The dominant story of this past week has been the SEC’s rejection of nine Bitcoin ETF’s. Since the denial, it has been stated that these rejections are still up for review, but it is likely the denials will be confirmed. Having said that, there is always the possibility that one or two might somehow manage to merely get delayed rather than denied, which would instill hope in the markets. It’s important to note that these ETF’s were all based on Bitcoin futures, not in the actual Bitcoin asset. Therefore, they do not have the same material impact on the market as a fully-backed Bitcoin ETF, like the one proposed by the CBOE in cooperation with VanEck and SoildX, which was not rejected by the SEC, and could still be delayed or approved in the months to come.
Considering this series of rejections was widely perceived as negative news, the markets fared relatively well, with Bitcoin managing to maintain a price above $6000, hovering between $6200-6500 over the past few days. Bitcoin has continued to increase its dominance due to weaker interest in alt coins that are continuing to demonstrate a selling trend back into the more trusted and established Bitcoin currency.
We have also witnessed some interesting events surrounding Tether and BitFinex, with hundreds of millions more Tether being printed over the past week. Normally, this coincides with a rally in the market, but this failed to create any momentum this time around, which could be concerning for the strength of markets over the next few days. It’s possible that this injection of Tether did manage to stave off further declines that may have otherwise been precipitated by the aforementioned negative SEC news.
As Bitcoin continues its steady climb to greater and greater dominance, a few notable projects have managed to outpace the crypto king. NANO has seen a strong week of growth, with its value surging from a low of $1.42 to the current $2.40. Another notable currency that is swimming upstream is CyberMiles, being added to exchanges including Bithumb and HiBTC this week. Zooming out on the charts, CyberMiles has a long way to go to return to all-time highs and could see some interesting movement over the next few days, especially when fully tradable on Bithumb, an exchange that tends to exhibit highly exuberant behavior with new additions, followed by highly volatile dumps, in some cases.
It should be noted that all of these observations are just that — observations I have made about the market over the past week. This is not professional financial advice and is intended only to act as a quick wrap-up of the week’s events for you to enjoy. Please do your own research before doing any investing and never risk more than you can afford to lose.