Market Wrap-up September 01, 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.
It’s been an interesting week of awakenings in the market, with a number of cryptocurrency projects stirring from what seemed like an eternal slumber.
Bitcoin began the week with a quick climb past $7,000 USD and has repeatedly found support and resistance at this level throughout this period, ending the week up about 5% from 7 days ago. It seems that the injection of millions of USDT Tethers may have finally had an effect in propping up the market. A number of bullish announcements and impending positive events may also be boosting trader confidence, such as Square’s filing of a cryptocurrency payment network patent and the growing recognition of ICE’s Bakkt as a positive for the future adoption of Bitcoin in broader markets.
Everyone’s favorite, Dogecoin, has experienced a remarkable run this week, up over 80% from a week ago, most likely due to Yahoo Finance adding the ability to purchase Bitcoin, Litecoin, Ethereum, and Dogecoin on the platform. Much win. A number of altcoins experienced large fluctuations in valuation over the week, often trending against Bitcoin. NANO began the week with a massive upsurge and a number of other coins have been moving positively with increases of more than 30%, including WaltonChain, WanChain, IOTA, ICON, and DASH.
As these projects have been hitting certain milestones or announcing partnerships, it has been apparent that some market movement is diverging from Bitcoin, creating opportunities for swing trades between currencies. The second-most dominant currency, Ethereum, has continued to wallow in a relatively low price range below $300. It is possible that it is over-sold at the moment, but may take some time to recover after the purported ICO sell-offs that occurred over past weeks and months.
The market appears to be more active with more varied price movement between various currencies. Whereas in previous months, most top coins have moved mostly in unison with Bitcoin, one can observe a separation in patterns that has not been seen in quite some time in the markets. It may be that traders are moving away from less proven projects and are moving funds into more prominent entities, causing some unpredictability.
It should also be noted that outside of Bitcoin, Ethereum, and USDT Tethers, volume is quite subdued across the rest of the market, with the majority of trading taking place between Bitcoin and Tethers.
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.