GOin Market Watch #3, insights for digital assets investors.

Alice de GOin
Feb 8 · 7 min read

Every Week, GOin gives the keys to understand trends in the Crypto Market to investors.

GLOBAL MARKET OVERVIEW

Period from February 4th 2018 to February 3rd 2019 — GMT close

Another bearish week for crypto assets that drives the global market capitalization down to USD 113.5 bn, close to its lowest level over the past year. Trading volumes are however increasing at a daily average of USD 17.4 bn over the period, compared to a daily average of USD 15.9 bn over the past year.

We consider that the crypto asset market is still undergoing a sound consolidation phase, in the wait for reinforced regulatory measures and additional regulatory-compliant intermediaries and financial instruments that could favor institutional investments.

In the news:

  • SEC filings of Bitcoin ETF applications by Bitwise/NYSE and VanEck/SolidX/CBO
  • FCA-compliant Crypto Facilities is acquired by Kraken
  • Binance partners with Simplex for the purchase of crypto assets with credit/debit cards

1-year evolution of global market capitalization

Source: www.coinmarketcap.com, GOin
  • Global market capitalization has decreased by 70.9% over the past year, and by 3.9% over the past week
  • Over the past week, BTC has once again been more resilient than the market (3.3% decrease in market capitalization), holding its predominant position with a 53% market share.
  • On the same period, XRP has outperformed the market (-2.3%) while ETH has clearly underperformed (-5.1%)

1-year evolution of global traded volumes

Source: www.coinmarketcap.com, GOin
  • Weekly traded volumes have decreased by 32.7% over the past year and are still highly volatile
  • Over the past week, average daily traded volumes have increased by 11.7%, driven by a 54.8% rise in XRP’s average daily traded volumes
  • BTC and ETH average daily traded volumes have increased by 8.6% and 8.8%, respectively

1-year evolution of 60-day volatility

Source: www.coinmarketcap.com, GOin

ZOOM ON TOP 50 SAMPLE

The Top 50 sample is determined every week according to the following methodology:

1) Ranking of crypto assets by market capitalization

2) Elimination of crypto assets that:

  • Have less than 3 months of trading history
  • Are stable coins
  • Are subject to publicly known issues — trading or storage failures, fraud suspicions, technical flaws in the underlying technologies

The complete list of currently eliminated crypto assets can be found here: https://www.goin-invest.com/index/fuseki/.

3) The remaining 50 largest market capitalizations are selected for analysis

7-day performance in USD

Period from January 27th 2019 to February 3rd 2019 — GMT close

Source: www.coinmarketcap.com, GOin
  • Poor week with a -7.2% median performance essentially due to a sharp drop on January 28th (-6.1% median daily performance)
  • Only 3 performing assets, including last week’s least performing, REP
  • HOT has eventually undergone a market correction (-24.2%) that mitigates its year-to-date outstanding performance (+152.5%)
  • As for NPXS, last week’s outstanding performance (+44.1%) has been mitigated by this week’s poor performance (-21.9%)

7-day traded volumes

Period from January 27th 2019 to February 3rd 2019 — GMT close

Source: www.coinmarketcap.com, GOin
  • Increase of weekly traded volumes by 11.7% compared to last week
  • Steady top 5 that represents 60.7% of global traded volumes and 86.9% of traded volumes on the top 50 sample
  • The top 5 drives the weekly increase with a growth of 19.8%

Average daily traded volumes/market capitalizations

Period from January 27th 2019 to February 3rd 2019 — GMT close

Source: www.coinmarketcap.com, GOin
  • The top 5 is quite stable with QTUM, ZEC, LTC and EOS remain at the top positions
  • Increased volumes combined with lower market capitalizations lead to a slight increase of the ratio (median value from 4.9% to 5.3% and average value from 10.7% to 12.4%)

7-day annualized volatility

Source: www.coinmarketcap.com, GOin
  • Increased volatility compared to last week, partly due to Monday 28th’s sudden drop (median value from 42% to 65%)
  • Reduction of the gap between the highest and the lowest levels (338% difference between the most and the least volatile last week, 128% this week)
  • HOT and REP are the most volatile crypto assets among the top 50 sample

90-day correlation to BTC

As of February 3rd 2019 — GMT close

Source: www.coinmarketcap.com, GOin
  • Correlation to BTC is still extremely strong despite a slight downward trend: -0.016 in median value and -0.032 in average value compared to last week
  • The 4 more correlated to BTC remain the same
  • The least correlated are relatively stable too
  • There are still no significant negative correlation to BTC and only 2 coins with negative correlations to BTC (REPO and WAVES)

ZOOM ON GOin’s INDICES

7- day performances

Period from January 27th 2019 to February 3rd 2019 — GMT close

Source: www.coinmarketcap.com, GOin

Over the past week, all FUSEKI indices have outperformed the Top 50 sample (8.3% average decrease).

The majority of the negative performance occurred during the rebalancing on January 28th.

BNB performance on rebalancing day and XEM performance over the week were the main drivers of the negative performance of the FUSEKI indices. After rebalancing, LTC, XRP, BNB and MKR are the only contributors of positive performance.

Constituents’ contributions to index performance

Period from January 27th 2019 to February 3rd 2019 — GMT close

Source : GOin *January 28th, 2019

Upwards pulling:

  • Litecoin. Best performer during the period (+2.6% over the period) that benefits all indices

Mitigated impact:

  • Binance-Coin. Positive performance after rebalancing (+8.6% over 6 days) that benefits all indices, especially the FUSEKI WPX (+2.58 points), which is mitigated by its strong backlash on rebalancing day (-12.4%)

Downwards pulling:

  • Nem. Poor performance (-25.5% over the period) with a strong impact on the FUSEKI, FUSEKI WL and FUSEKI WPX
  • Stellar. Poor performance too (-15.5% over the period) that drags the FUSEKI and the FUSEKI WL down

7-day correlation of index constituents

Period from January 27th 2019 to February 3rd 2019 — GMT close

Source: www.coinmarketcap.com, GOin
  • Compared to previous week, 3 more crypto assets entered the FUSEKI WPX during the week
  • Correlation to BTC is stable: 0.70 average value this week (compared to 0.69 for the previous period) and 0.78 median value (compared to 0.79)

Rebalancing

As of February 4th — At rebalancing price

Source: GOin
  • No change in the top 4 given their relatively low volatility levels compared to other crypto assets
  • Out: BNB mainly due to an increase in volatility
  • In: MKR mainly due to decreasing levels of volatility

Average rotation rates

As of February 4th — At rebalancing price

Source: GOin
  • No significant moves on the rotation rates over 1 year
  • Lower rotation rates this week compared to last week as only 1 crypto asset entered the Indices (MKR) to replace BNB

1- year performances compared to BTC and ETH

Period from February 4th 2018 to February 3rd 2019 — GMT close — Rebased

Source: www.coinmarketcap.com, GOin

DISCLAIMER

This publication is for discussion and informational purpose only. No statement nor information presented in this document shall be considered an investment advice.

No statement nor information presented in this document shall be considered a solicitation to buy or an offer to sell a security, or any other product or service, to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

The data provided and calculation presented are for illustrative purpose only, and GOin shall not have any liability, contingent or otherwise, for the accuracy, completeness, timeliness or correct sequencing of any information provided by GOin or for any decision or action taken by you in reliance upon such information. Past performance does not guarantee future results.

GOin, a French SAS registered in Paris, France under French law owns a) all registered design, trademark, service mark rights and copyright; b) all intellectual property and any other rights and interests in this publication.

Crypto asset markets are young and highly volatile, which means crypto asset investments are particularly risky. Before investing in crypto assets, you need to be aware of and accept that you might be exposed to the following risks: a) market risk; b) risk of partial or total loss of capital; c) currency risk; d) liquidity risk; e) regulatory risk; f) technological risk; g) risk of theft or fraud; h) any other risk related to crypto asset investment.

To learn more about GOin and its offer you can visit www.GOin-invest.com, and connect with us on social media to stay up to date with the latest news:

GOin-Invest

Built on top of a state-of-the-art trading platform, GOin provides performing crypto asset investments.

Alice de GOin

Written by

I represent the amazing GOin project across social networks. We aim at simplifying investments into crypto assets. I would be happy to answer your questions :

GOin-Invest

Built on top of a state-of-the-art trading platform, GOin provides performing crypto asset investments.

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