Market Wrap-up November 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.
As American families gather round the Thanksgiving dinner table this weekend, the conversation in many homes will turn to Bitcoin — this time, with a high degree of awkwardness, a bit of disappointment, a dash of mockery, and perhaps some familial resentment thrown into the mix for good measure.
It has not been a good week in the crypto markets, to put it mildly. In fact, anyone who had taken the advice of their family crypto-enthusiast around the dinner table this time last year would now be looking back at their investment with discouragement and, at the least, a resigned sigh of, “Oh well, it was worth a shot”, if not worse.
To be fair, one could have bought Bitcoin last Thanksgiving and come out ahead selling it in late December or early January, but being that most tend to hold on to assets as they skyrocket in value and only think to sell when losing money, the vast majority of casual buyers from last year may feel like they are stuck holding the bag, as it were. And who could blame them? It just seemed at the time that there was no stopping the rocket that was the cryptocurrency market of late 2017.
Many will attempt to attribute a particular narrative to the broad sell-off of this past week, as it is human nature to try and make sense of events that may at first appear to be random or unexplainable. Some will point to the Bitcoin Cash hard fork controversy that may have initiated the sell-off. The fact that the SEC has been cracking down on some ICO’s doesn’t bode particularly well for the fragile ICO market and the likes of Ethereum along with its many questionably-legal securities tokens. Add to this the fact that Bakkt decided to delay their launch by a month (with prices dropping days before this announcement, many wondered if there was some inside knowledge regarding this tidbit of negative news), and you have a nasty combination of bad news that could indeed cause negative movement in the market.
The simple reality is that more people were selling crypto than were buying crypto.
This, however, just feels… bigger. It’s broader, deeper… on a grander scale. Something is in the works here, and it goes beyond any one little news story. Something is happening in the background. Could it be institutional manipulation? Whales causing price drops in the hopes of accumulating? Wall Street reversing the train so they can hop on? Or just a broadening lack of interest and dwindling confidence? Who knows. It’s hard to say with any degree of certitude.
But it doesn’t seem that we have quite reached the point of despair. Not yet, anyway. There’s just too much hope remaining for the market to have reached the level that one might consider things to be disastrous. Sure, a few bullish analysts have toned down the hopeful rhetoric slightly, but it still seems to generally be agreed that true despair won’t be reached until Bitcoin plummets to values below $3000, perhaps even lower, with a battered crypto market cap falling below $100 billion. We’re not quite at the point yet where people just give up and bitterly cast their Ledger hard wallets into a backyard fire in a moment of anguish.
It’s not quite at the bottom yet… but we’re getting there. We might be witnessing blood in the streets any time now.
And you know what they say about blood in the streets….
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.