Weekly Market Performance Report

Size: px

Start display at page:

Download "Weekly Market Performance Report"

Kelley Rice
5 years ago
Views:

1 Weekly Market Performance Report 8th October 14th October 2018 Cryptocurrency Market Performance Previous week s overview (1 st Oct 18 7 th Oct 18) Cryptocurrency (As on 7 th Oct 18) Week s end price (7 th Oct) Week s start price (1 st Oct) % Change Bitcoin (BTC) 6, % Ethereum (ETH) % Ripple (XRP) % Bitcoin Cash (BCH) % After ending September with some impressive performances ( XRP climbed by roughly 200% in the span of just a few days late in the month), many of the top digital currencies by market cap spent the first few days of the new month trading generally sideways. After a slight dip in the middle of the week, industry leader bitcoin recovered in the final days of the week and was trading just under $6,600. Ethereum, the second-largest token by market cap, declined slightly over the week but posted small gains to help recover those losses from Friday into Saturday. According to data from Coinmarketcap, each of the other cryptocurrencies in the top 10 by total market cap had seen a marginal dip in value heading into the weekend Current week s overview (8 th Oct th Oct 18) Cryptocurrency (As on 14 th Oct 18) Week s end price (14 th Oct) Week s start price (8 th Oct) % Change Bitcoin (BTC) 6, , % Ethereum (ETH) % Ripple (XRP) % Bitcoin Cash (BCH) % This week all the major cryptos ended the week in red. In the middle of the week, many of the top digital currencies in the world saw their values plunge dramatically. Among the most popular digital currencies, ethereum and ripple (XRP) led the dive, according to data by Coinmarketcap. Even in spite of having recovered slightly from midweek lows, ethereum was hovering just marginally below $200 and XRP was below $0.42 per token as of this writing.

2 Bitcoin also fell in the turbulent period in the middle of the week, although it stabilized before losing an equivalent percentage of its value. Nonetheless, with a price of $6,274 as of this writing, BTC has fallen below the mid-$6,000s price point it has experienced for several weeks. Possible reasons for market movement This week s fall may be linked to the massive stock market declines which began later in the week. Still, a drop in cryptocurrency prices aligning with a fall in the stock market is somewhat unusual. In the past, digital tokens have often been perceived as "safe haven" investment options in the case of stock market declines. More recently, though, BTC and other cryptocurrencies have tended to see their prices rise and fall in greater alignment with the movements of the broader stock market. Developments over the week in Cryptomarket 1) Kenya s government plans to deploy blockchain technology to manage a government housing project of 500,000 units 2) Former chairman of the U.S. Commodity Futures Trading Commission (CFTC), Gary Gensler said that most tokens sold through Initial Coin Offerings (ICOs) should be classified as securities. 3) Gary Cohn, a former chief economic adviser to U.S. Pres. Donald Trump has joined the board of advisers of blockchain-related tech company Spring Lab

3 Bitcoin (BTC) Trend This week, bitcoin price saw a solid increase in selling pressure around the $6,600 zone against the US Dollar. As a result, there was a nasty decline and the BTC/USD pair fell below the $6,400 and $6,200 support levels. The price traded towards the $6,100 level and formed a low at $6,093. Later, the price started an upside correction and moved above the $6,200 resistance. BTC was trading at $6,652 at the beginning of week (8th Oct 18) and reached $6,290 by 14th October, a fall of 6% over the week. On 14th October 18, the average number of transactions per day stands at million and volume is $3 billion at the time of writing

4 Source: CoinMarketCap

5 Ripple (XRP) Trend This week, XRP saw a sharp downside move below the $ level in Ripple price against the US Dollar. The XRP/USD pair spiked towards $ before correcting higher. However, the correction was limited and the price declined further below $ and $ It traded close to the $ level and formed a low at $ The price is currently correcting higher, but it is still well below $ and the 100 hourly simple moving average. XRP ended the week in red with price decreasing from $0.49 on 8th Oct 18 to $0.40 on 14th October, a decrease of 18%. On 14th October 18, the per day number of transaction of XRP stands at million and volume is $289 million at the time of writing Source: CoinMarketCap

6 Ethereum (ETH) Trend This week, there was a sharp downside move from the $234 resistance zone in ETH price against the US Dollar. The ETH/USD pair tumbled and broke the $206 and $200 support levels. It tested the $ support and formed a low at $ The price later started an upside correction above $190, but it is still way below the 100 simple moving average (4-hours) The total week s performance settled at %. The price was $ on 8th October and it gradually decreased to $ towards the end of the week (14th October). On 14th Oct 18, the per day number of transaction of ETH stands at million and volume is $1.17 billion at the time of writing. Source: CoinMarketCap

7 Bitcoin Cash (BCH) Trend This week, we saw a major downside move below the $520 and $500 supports in bitcoin cash price against the US Dollar. The BCH/USD pair declined heavily and broke the $450 support. There was also a close below the $450 level and the 100 simple moving average (4-hours). It traded close to the $ support area and formed a low at $421. Later, the price started an upside correction and moved above the $430 level. The total week s performance settled at -17.0%. The price decreased from $ on 8th Oct to $ with a total market cap of $7,798 million at the time of writing (14th Oct 18) On 14th October 18, the per day number of transaction of BCH stands at million and volume is $242 million at the time of writing (14th Oct) Source: CoinMarketCap

8 Top Ten Cryptocurrencies (7 th October - 14 th October) Cryptocurrency Week s price ($) (14th Oct) Week s price ($) (7th Oct) % change Market Cap ($mn) (14 th Oct) Market Cap ($mn) (7 th Oct) % change Bitcoin (BTC) 6, , % 108, , % Ethereum (ETH) % 20,479 23, % Ripple (XRP) % 16,741 18, % Bitcoin Cash (BCH) % 7,798 8, % EOS (EOS) % 4,759 5, % Stellar (XLM) % 4,057 4, % Litecoin (LTC) % 3,141 3, % TETHER (USDT) % 2,674 2, % Cardano (ADA) % 1,894 2, % Monero (XMR) % 1,684 1, % Source: CoinMarketCap The market cap of cryptocurrencies is a product of the volume of the currency and its price. The top 10 cryptocurrencies comprise almost 85% of the total market cap of cryptomarket at the time of writing. Over the week, the market cap of top 10 cryptos decreased from $185 billion on 7th October to $172 billion on 14 th Oct, a decrease of almost 7.00%.

9 Conclusion Last week, Bitcoin had remained relatively stable in the $6,400 to $6,600 range, struggling to sustain its daily trading volume across major crypto exchanges. This week BTC broke that support and moved down $6,500 level and was trading at 6,290 at the time of writing. Given the low volume of Bitcoin and the weakening $6,500 support, in the short-term, it is highly likely for BTC to record a minor decline in value based on technical indicators and its price trend since mid-september. There has been no sign of a bounce back to previous levels as total market capitalization this week hovered just above $200 billion The crypto market has just entered into another tough period when a lot of coins started losing its value this week. However, the stability of Bitcoin and the unpredictable nature of the digital asset leaves a breakout of the $6,800 resistance level still a possibility. Ethereum (ETH), second cryptocurrency by market cap, is down, around 15.0% percent over the week. Ripple (XRP), the third largest cryptocurrency by market cap, has seen much more dramatic price movement this week with a fall of almost 18% over the week. Last moth, XRP showed an increase of 68% over the month. New research published in a renowned scientific journal speculates that the Bitcoin markets are rapidly maturing, which could be positive news for investors. The journal called Chaos: An Interdisciplinary Journal of Nonlinear Science highlights some interesting features regarding the rapidly evolving cryptocurrency markets in a report titled Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations, and multiscaling effects, and lays out a scientific case for why Bitcoin could be a good investment. The report is authored by researchers at the Henryk Niewodniczanski Institute of Nuclear Physics (IFJ PAN) of the Polish Academy of Sciences in Krakow. The report explains that although Bitcoin and cryptocurrency are widely viewed as speculative investments that don t inspire public trust, digital assets could be a better form of currency than previously thought by analysts and the public. The adoption of blockchain technology is slowly taking shape across a multitude of industries. At the forefront of the amalgamation of payment systems and logistics is US tech giant International Business Machines Corporation (IBM), which has established itself as a leader in terms of blockchain-based products and offerings. Several other players like Sony and others are showing interest in blockchain technology and are vouching to invest into it as they see a huge underlying potential. Having said that, it would be good to see how this industry unfolds and evolve in the coming years.

10 . Disclaimer: This publication is provided by Invsta in good faith for general information purposes only. Information has been prepared from sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Information, analysis or views contained herein reflect a judgement at the date of publication and are subject to change without notice. This is not intended to constitute advice to any person. This does not constitute advice of a legal, accounting, tax or other nature to any persons. You should consult your tax adviser in order to understand the impact of investment decisions on your tax position. Past performance is not indicative of future results, and no representation or warranty, express or implied, is made regarding future performance. Cryptocurrencies are a highly volatile, high risk investment in which the value can change significantly. Before making any investment you should consider your own risk tolerance level and personal financial situation.

Monthly Market Performance Report

Monthly Market Performance Report October 2018 Cryptocurrency Market Performance First week s overview (1 st October 18 7 th October 18) Cryptocurrency (As on 7 th Oct 18) Week s end price (7 th Oct) Week