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 mid-week resurgence of Bitcoin Cash and XRP got the market moving after a slow start. Still bouncing around its recent high, XRP continued to hold value despite the return of concerns regarding the massive holdings of just a few individual entities. The Ripple corporation itself continues to hold around 60% of all XRP and Jed McCaleb, the Ripple and forked Stellar Lumens founder who personally holds billions of dollars in XRP, could single handedly move the valuation of the currency with the click of a button. You want whales? You got ‘em.
Speaking of whales, Bitmain announced the launch of an IPO, immediately causing a frenzy of buying activity on Bitcoin Cash, sending it skyward with an increase of around 20% value compared to USD in a matter of hours. The currency has traditionally settled at around 10% of the value of BTC but had been dwindling further below this marker with recent negativity surrounding forking issues and disagreements between important figures and developers in the BCH community. Bitmain, the monopolistic ASIC miner manufacturer and mining pool operator, is one of the largest hodlers and supporters of BCH, so the announcement of a Bitmain IPO likely caused an enthusiastic response due to the influx of funds that could be used to further develop the platform.
This enthusiasm naturally cooled off somewhat but further fell as concerns regarding Bitmain’s lack of profitability and eventual losses during the crypto winter show danger signs for the road ahead. Bitmain continues to have an excess of unsold inventory and may not see a profitable quarter for some time unless trends change significantly. At the time of this writing, BCH sits comfortably again around 8% of the value of BTC in USD, healthier than it was a week ago, but possibly over-bought at this point. A sell-off over the weekend or on Monday or Tuesday is a likely possibility.
Kept relatively quiet in crypto news, a crucial bug in BTC’s core software was discovered by none other than a Bitcoin Cash developer, reminding the larger community that, despite the frequent spats and in-fighting, this is still a collaborative effort. The bug, revealed on the BTC testnet, allowed for a trick that would result in the duplication of otherwise non-existent Bitcoin. Efforts to patch the bug were quick, but the longer-term implications of possible forking and dead nodes have not yet been resolved. This seemed to have little effect on the market as BTC remained quite stable throughout the week and, if anything, showed a narrowing consolidation that points to a possible incoming breakout.
In other news, Google has decided to partially lift its ban on crypto advertising. With approval in the US and Japan, certain crypto entities such as exchanges, will be permitted to again promote themselves as the next best thing, possibly increasing exposure to the mainstream via Google. Google appears determined to keep the lid on certain less trustworthy entities, learning from the past bull market’s tendency to attract ponzi schemes and to be littered with ICO scams that caused many a naive investor hoping to hit it big to unwittingly lose their shirts instead.
A couple interesting events with smaller projects are taking place soon that may be the cause of some recent bullish behaviour. Reddcoin, the relatively obscure project focused on social media tipping, is launching its REDD-ID platform on September 30 and is currently trending positively in anticipation. Alongside this movement, Electroneum continues to be highly volatile, up 100% on the week, but currently sliding in value. PIVX, a solid privacy-focused coin that is reaching important development stages is also surging today.
All in all, the market is moving steadily in a positive direction, with the total market cap settling around $220 billion and Bitcoin dominance waning slightly to around 51%. If the market can survive the usual weekend / early week slowdown above $200 billion, we could see some positive building of investment in the following 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.