Crypto Prices Get Knocked Down...
But they'll get up again, you're never going to keep them down - Market Report: Week 34, 8/29
We’re so sorry that song is now stuck in your head…
Every Wednesday we publish our Industry Report, covering some of the big picture news and recapping our trade opportunities from the last week. To see all of our asset reports - covering BTC, ETH and EOS- and all of our trade opportunities, subscribe now, youe first month is FREE!
In this issue:
What’s new at Tradecipher
Why did the markets get knocked down anyway?
A Cryptocurrency of China’s Own - no, this isn’t about EOS
Trade Opportunity Recap
Crypto Markets are down - here’s why.
In case you’ve been vacationing on Mars over the past week, the cryptocurrency market is down $18B. That’s part of a larger trend; the overall cryptocurrency market cap has dropped a $149B (38%) since the end of June.
So what’s up? Well, the hype train is just stopping over at Reality Station - and prices are going back to their levels before this latest surge (likely in the $8000s).
June was a great month for Crypto. EOS announced The Voice (remember that?), Facebook announced Libra, and it was reported that people in places like Hong Kong were driving up local crypto prices around various government -related fears.
And the hype train kept rolling on!
Speculators bought Bitcoin as an alternative to gold. Speculators bought Bitcoin because - holy carp, Facebook is in and bringing 2.6 Billion people to blockchain! Speculators bought Bitcoin when President Trump started his trade war, and they bought Bitcoin for any other reason they could convince themselves to
Funny thing about that… hype isn’t sustainable. At some point Speculators have to sell. And with no particularly excited new buyers, it was time for the markets to cool off. It’s been a really slow few weeks for crypto news, and when it came time for many of June’s exciting announcements to actually do anything, we got a lot of nothing instead.
Libra is stalled in Congress, The Voice is oddly silent, and so on. So, prices fell - back to where they were before the hype train took off in June.
Which means BTC prices are down for now, which makes it the perfect time to buy for the long term! If you’re not already a member - subscribe to get live updates about the right time to buy BTC
China’s New Cryptocurrency
Citing concerns over capital outflow which is weakening local currency, the People’s Bank of China will be launching a blockchain-based digital currency to compete with cash.
So what happens next?
Well, you’re probably going to hear a lot of dumb internet arguments about what is and what isn’t a cryptocurrency. What you need to know is that government-backed digital currencies are to cash what Bitcoin is to Gold. They’re subject to all of the dangers inherent in sovereign currencies - in fact, governments can hide their fiscal policies more easily than ever and use digital currency to censor real or perceived enemies of state more easily than before. You can’t lose it in your couch though, so that’s a plus.
China’s crypto is a response to its concern over the potential monopoly created by Facebook’s Libra. And it’s probably going to prompt other governments to follow suit.
Realistically, that’s all we know - China will almost definitely use this currency to increase its surveillance of its citizens. Beyond that, if you claim you know anything significant about the impact of this new currency, you’re either a liar, a senior member of the People’s Bank, or Secretary General Xi Jinping - in which case, why are you reading us?!
If you want technical details , Read Binance Research’s excellent report.
Our Trades This Week
Every Week we recap our closed and active trade opportunities from the last seven days so you can see our performance and discuss what we’ve learned.
EOS Cumulative 1.75%
BTC Cumulative 1.25%
ETH 9.84%
Overall our trades returned 3.16% over the past week and were 60% accurate.
We were a little too conservative with our stop loss pricing on our first BTC trade - which would have returned around 10% had we left it open.
That’s it for our Weekly Report! If you enjoyed it and you’re not already a member, subscribe now for about the price of a sandwich each month and get:
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