Market Review for November 26 — December 9, 2018
What’s in our weekly Market Overview for November 26 — December 9, 2018?
Well, despite the general decline of the crypto market there is a number of interesting developments:
• the last sharp drop in Bitcoin prices was marked by record trading volumes — not in USD, but in BTC. According to Kraken exchange analytics, the volumes for the last 2 weeks exceeded both levels at the peak of the price in December 2017, and those at the point of panic sales in February 2018
• another ETH Hard fork — is it going to be challenging for the network?
Read the full article for more information, share and tell us what you think!
“The cryptocurrency market continued to fall over the past two weeks. No signs of a bearish trend reversal have yet been observed. The exception is only a significant reduction in short positions for the last 2 days after their rapid growth in early December.
EOS price has experienced the greatest pressure, having lost more than 40% since the beginning of the month. The reason for the sale was the news that Dan Larimer (the founder of EOS) intends to create a new, more sophisticated project than EOS. Recall that EOS is the third project of Larimer’s and the first two, Bitshares and Steemit, are not developing significantly.
Earlier in November, a study was published stating that EOS is not a blockchain, but only a cloud computing platform or a complex database. Given the fact that a transaction was canceled in the EOS network in November, many people have a question: is this really a decentralized blockchain? Nevertheless, the EOS network remains the leader in terms of the volume of transactions per day: more than 6 million versus 0.6 million in the Ethereum network and 1.5 million in the TRON network. We believe that at the moment, despite a decline of almost 93% from ATH, there is still potential for a further reduction in the capitalization of EOS, which still amounts to almost $ 2 billion.
Last week the date of the (Ethereum network’s) Constantinople hardfork became known; it is scheduled for block # 7080000, approximately January 16, 2019. For the first time, the Ethereum inflation model will be changed; the reward for the extracted block in the network will be reduced from 3 ETH to 2 ETH.
On the Bitcoin network, the decline in reward for the unit has so far contributed to the price increase. How much will the offer change on the ETH market? With the current miner remuneration, an average of 1 month is extracted about 525,000 ETH. At $90, this creates an initial supply of more than $47 million per month. Changing the block reward will reduce this amount to $31 million per month, which is less than the average daily trading volume of ETH/USDT at such venues as Huobi or Bitfinex.
Also, in this review we consider it important to state that high trading volumes are observed not only at exchanges. OTC markets have displayed increased activity. For example, according to information from the Datalight service over the past two weeks, LocalBitcoins is trading at approximately 12,000 BTC per day. Previously, such volumes were observed in October 2017. Also, the OTC division of Circle announced that it had reached trading volumes of $2 billion per month, which is equivalent to about 15,000 BTC per day.
The last sharp drop in Bitcoin prices was marked by record trading volumes, but not measured in USD, but in BTC. According to the data from the Kraken exchange, the volumes for the last 2 weeks exceeded both levels at the peak of the price in December 2017, and those at the point of panic sales in February 2018.
Such activity is related to the difference in the objectives of market participants. Some of them are selling, wanting to save the remaining funds due to fears of further price drop. Another part (buyers) — accumulate Bitcoin using current price levels. Among such buyers are Grayscale’s Bitcoin Investment Trust, which, during 2018, keeps increasing Bitcoin’s monthly purchase levels, becoming the largest institutional holder. The trust already owns approximately 203,000 BTC, which is about 1% of circulating coins.”
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