CRYPTO GOLD WEEKLY UPDATE (Feb. 19)

CRYPTO GOLD WEEKLY UPDATE
Week of Monday February 19, 2018

Markets Performance:

  • Last week, cryptoassets were the best performing asset class with the cryptocurrency flagbearer, Bitcoin (USD) snapping a 5-week losing streak, finishing the week at $10,178.71, up +17.1% from the previous Friday’s close of $8,689.84.
  • Ethereum’s Ether (USD) rose +10.4% during the week period, moving up nearly ~$100 from $852.38 to $941.08, while the broader CAMCrypto30 index (top 30-cryptocurrencies by market capitalization), outperformed with an +18.4% gain.
  • Fading regulatory fears out of South Korea, which accounts for a large bulk of cryptocurrency trading, helped further calm the recently distressed cryptoasset market, which saw Bitcoin’s (USD) price plummet -70% from an all-time high of nearly ~$20,000 (12/17/17) back down to ~$6,000 (2/6/18).
  • Following the worst two weeks for the S&P 500 since August 2011, legacy markets also found footing during last week’s trading session, with both the S&P 500 and tech-heavy Nasdaq up +4.3% and 5.3%, respectively.
  • Inflation is beginning to come into focus for legacy markets with increased deficit concerns continuing to send both the dollar and treasuries lower, with inflation-hedged assets like gold and other commodities seeing further capital inflows.

2.19.18 Crypto Data

Recent Trading History / Current Trading Range:

  • As a cryptoasset benchmark, the price of Bitcoin (USD) is off -49% from its December 17th high of $19,783.21, but still posts a staggering +1,125% gain over the last twelve months (LTM) versus only +16% from the S&P 500.
  • After hitting a 4-month low of $5,922 on 2/6/18 (off -70% from its all-time highs), Bitcoin (USD) has recovered roughly +70%.
  • On the technical front, however, Bitcoin (USD) is currently facing an 9-week bear cyclical trend, stuck within a downward trading channel (blue-dotted lines).
  • The $12,000 price level will be a key technical threshold to watch with Bitcoin (USD) looking to recover further, as both a long-term resistance level and downward trading channel band are challenged.

2.19.18 BTC Chart

Crypto Market Drivers:
(*Level of Importance in Descending Order / Bold & Hyperlinks – Major Weekly News)

SHORT-TERM (ST) DRIVERS:

LONG-TERM (LT) DRIVERS:

  • Decentralization / Disintermediation Trend
  • Technology Adoption (i.e. permissioned / non-permissioned networks, individuals, industries, government, etc.).
  • Speculation and Investment
  • Financialization (i.e. futures, ETFs, etc.)
  • Volatility in Legacy Financial Markets (or lack thereof)
  • Blockchain Technology Advances and Vulnerabilities (i.e. scaling, security, etc.)
  • Non-Blockchain Technology Advances and Vulnerabilities (i.e. DAGs, non-Proof of Work consensus algorithms)
  • Regulatory (i.e. China, South Korea, United States, etc.)
  • Tax Implications
  • Decentralized Governance (i.e. technology upgrades, forking, incentivization structure, etc.)
  • Geopolitics / Macroeconomic Forces (i.e. risk-on / risk-off)

Major Events This Week:

  • Major cryptocurrency and blockchain events out of France, Switzerland, India, Germany, Italy, U.K., and the U.S. are set to dominate cryptocurrency headlines once again in the coming trading week.

Wild Crypto Story of the Week:

Glossary:

  • DAG – “Directed Acyclic Graph” is non-blockchain form of distributed ledger technology (DLT) using a consensus algorithm without the use of mining (Proof-of-Work). DAG-based DLTs look to improve upon blockchain limitations, particularly with respect to scaling and speed. IoT Chain (ITC), IOTA, Byteball, and Hashgraph are DAG-based projects currently leading the non-blockchain market.

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