It’s safe in the cryptos 🔑
Market Report: 24th April 2019 — Subscribe to our newsletter.👈
OUR TWO SATOSHIS
The daily view from our desk
Imagine waking up from a vegetative state after 28 years to see people clamouring over this hat. You’d be more concerned about the rise of the far right (or left) but at least people know how to taunt them. For some, freedom isn’t all it’s meant to be, as this fugitive found out after turning himself in after being on the run for 10 years.
“THE BEARS ARE ALREADY HERE”
WHAT IF THOSE WHO WERE THOUGHT
TO BE REKT WERE JUST ASLEEP?
Yesterday’s newsletter was prescient. The uncertainty associated with bitcoin’s fragile $5.65k (£4.35k) value is having an outsized impact in the market. Over the past 24 hours, while BTC depreciated a meagre 0.9%, the top 100 projects are down 6.8% on average — even ether lost 5.6%! Moreover, the changed relationship between the original cryptoasset and alts — which we anticipated on April 1st and that Luke Martin just visualised — means these will fall if BTC jumps.
Meanwhile, the alts dump has halted. But note that Ripple’s XRP — one of the five large cap alts that failed to appreciate this year — revisited last December and February lows. On USD terms that is; because against BTC it might have been the short of 2019! This scenario is exciting bears. Some are even claiming April’s rise was a bull trap. Horn Hairs shows how in July 2015 a similar scenario played out — where BTC fell 38% after failing to break a strong resistance — so check it out!
“IT’S SAFE IN THE CRYPTOS”
“WHEN THE TIME COMES, YOU’LL BE DOWN IN THE CRYPTS. THEY’RE THE SAFEST PLACE TO BE”
All this renewed bullish sentiment warrants reflection. The $1k pump bitcoin experienced on April 2nd has left many perplexed and new explanations continue to be put forward. Longhash argued Chinese investors bought stablecoins over-the-counter to buy cheap corn. Last week, CoinMetrics.io also analysed the move and concluded a single actor pumped BTC on purpose during a time of low-liquidity — and even if that wasn’t the case their animations are worth checking out.
On the same hand, a new report by the CryptoIntegrity team, a cool “non-commercial project aimed at fraud detection and forensics in the crypto markets”, deep-dived on the liquidity issue. After analysing the order books of the top cryptoasset exchanges, they just posited the April 2nd lift started with a trade on Bitfinex — instead of on HitBTC, as CoinMetrics.io suggested.
A representative even claimed “The more probable hypothesis is that a trader, or a group of traders, which are possibly affiliated with crypto exchange(s), has pumped the price in order to increase volatility and draw attention to crypto trading”. Which brings memories of good-old Tether pumps to our mind. Oh, when will the infamous Bitfinex’ed Twitter account return to stir the waters!
WHAT YOU CAN’T MISS TODAY
DON’T LEAVE FOR THE WEEKEND WHAT YOU SHOULD READ TODAY
▪ Lightning Labs launched its Lightning Network app on Bitcoin’s mainnet. It’s still under testing but no longer beta. Check out all the details here.
▪ Wired tells the story of how millions of dollars were stolen from Ethereum wallets that had weak private keys. A great reminder to up your security!
▪ NYT’s popular blockchain reporter, Nathaniel Popper, asks if “after the bust, bitcoins are more like tulip mania or the internet”? Tl;dr: it’s too early to tell.
▪ Tezos, whose XTZ token is up 3x over the past quarter, is finally attracting significant attention. Charlie Wiser, from a Tezos-affiliated group, explains why.
▪ Lastly, if you missed CryptoIntegrity’s article from the sections above, make sure you learn more about “true liquidity and price discovery in crypto space”.
QUOTE OF THE DAY
DID THE INCENTIVES CREATE THE MOTIVATION OR THE MOTIVATION THE INCENTIVES?
“Perhaps the biggest thing that cryptocurrencies have going for them is that serious people still want to fix the flaws. The value of digital tokens — however volatile they may be — has created incentives for people to work on them.”
- By Nathaniel Popper