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 epic Tether tale has continued for yet another week with a massive burn of $500 million worth of USDT tokens, with Bitfinex essentially cashing out back into USD currency and destroying the tokens. Some have speculated that the burn is performed in order to prod the token to return to its once-USD-pegged value. The fact that yet another stablecoin is entering the market via Coinbase, simply called USD coin, likely isn’t helping matters for the beleaguered currency.
The Coinbase USDC will offer traders a stablecoin to trade on the popular American-based platform and add yet another “bank-like” feature to Coinbase offerings, including the ability of Coinbase to freeze USDC assets and censor accounts. This isn’t exactly what the cypherpunks of yesteryear were envisioning when they imagined crypto spreading to the masses.
Along the same regulatory vein, more anticipation is building about the increased possibility of the SEC approving a Bitcoin ETF in the United States due to numerous conditions being met since the last delay. In particular, Bitcoin has proven to become much more stable since the inception of regulated Bitcoin futures on the CBOE and CME exchanges. In recent weeks, the once highly volatile currency has proven to be more stable than even traditional stock and bond markets. With progress from bodies like the Intercontinental Exchange, NASDAQ, and other establishment financial entities like VISA appearing to be more serious about seeing crypto as a legitimate asset, the possibility of large-scale institutional involvement is appearing to be more and more inevitable with every passing day.
In terms of market excitement, few had as dramatic of a week as Ravencoin, surging at some points to nearly 100% of its previous week’s price before falling off mildly, only to return to a continuing positive trend — not a terribly common pattern after such massive pumps. With the upcoming mainnet launch of asset issuance at the end of the month, the sustained positive movement should last for at least a few more days, but it might be wise to set some stop limits in case of a rapid dump prior to the launch. The volume for trading on Ravencoin shows considerable support for the newfound higher price plateau, but this could fade quickly with a sell-off after launch.
On the other hand, a few coins have seen large pumps, but have lacked volume to support a sustained drive. Coins such as Veritaseum, Nexo, and Revain have seen strong growth in price, but are lacking significant volume and could be vulnerable to prices falling off a cliff in the near future.
Speaking of falling off a cliff, Electroneum has continued its plummet, along with Dogecoin, 0X, and CyberMiles. Beware of low-volume blips on some of these currencies as spikes in prices are relatively easy to achieve with little investment. 0X was bound to come down from its high as the excitement of the Coinbase launch has since worn off. Similarly, Decred saw an explosive reaction to being listed on Binance, only to rapidly return to its more modest price and volume within a few days.
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.