CV Market Watch™: Weekly Trading Overview (15-22 June)
Markets moved sideways for most of the week, but another correction started to hit ahead of the weekend.
Bitcoin settled on its new, lower level, running along the $6,500 range for a week now. BTC has been unable to return to previous round-number levels, instead dropping to a lower range. Just like BTC failed to reconquer the $8,000 range, now the asset is permanently below $7,000. Altcoins are having their separate runs, but nothing spectacular as in the fall of 2017.
Bitcoin (BTC) started to slide once again ahead of the weekend, weakening to $6,400.61, down a net 5% in the past 24 hours. BTC is down around 2.8% since last week, but trading has definitely weakened, with no signs of recovery and a return to the previous hype. One reason is the general slide in the markets, but also, separate enthusiasm for several altcoins which are building their ecosystem and trading with less influence from Bitcoin.
Trading volumes for BTC crashed to $3.7 billion, returning to the levels from last summer. To a great degree, BTC is kept afloat by the Japanese yen, which covered more than 66% of BTC deals. US dollar markets shrank to a share of 14%, and Tether (USDT) trading was just 14% of all Bitcoin pairs. At the same time, the weight of USDT on the entire market is approaching 20% - a sign that external investment is slowing down to a trickle, and all trades are internal. Additionally, the Japanese exchange, BitFlyer, announced it is closing new registrations to improve its KYC and AML procedures. Japanese exchanges are a ramp for fresh fiat coming into crypto coins, and the temporary restriction on BitFlyer may decrease investments.
Ethereum (ETH) sank to $494.82, starting to look like the summer of 2017. While ETH is instrumental to the crypto ecosystem, the lack of speculative trading is taking its toll. Still, ETH volumes are robust at $1.6 billion, surviving somewhat better compared to Bitcoin. ETH sank by about 7% net after the market turned to red again.
Ripple (XRP) is down to $0.51, losing 7% this week, and a net 5% in the past day. XRP has also lost its appeal, with no possibility of a direct dollar inflow.
Bitcoin Cash (BCH, BCC) sank to $809.11, also gradually wiping out gains. BCH is less volatile in Bitcoin prices, but volumes show a lack of enthusiasm and a potential continuation of the downward trend.
EOS (EOS) was a curious case, keeping its price almost intact in previous sell-offs, but on Friday, the asset suddenly sank, becoming the biggest daily loser among the top 10 of coins, wiping out more than 11% of its price to $9.35. EOS is down more than 14% this week, despite the successful network launch. Some see the asset sink as low as $5 as the hype unravels. EOS was heavily supported by USDT trading, but now the volumes are decreasing.
Litecoin (LTC) also unraveled, to $89.28, down 8% in the past day and a net 9% this week. LTC follows the general trend, gradually decreasing in value as the markets lose support. More than 27% of LTC trading is supported by USDT, but the influence of BTC with a 51% of trading is taking its toll on LTC prices.
Stellar (XLM) sank to $0.21, wiping out around 8% net this week. XLM has been drifting sideways in the new bear market, but there is a catastrophic loss of volumes and an ongoing slide as the novelty has worn off.
Cardano (ADA) was added to eToro, but the news hardly affected crypto exchanges. ADA returned to $0.14, losing more than 12% this week.
TRON (TRX) slid downward again, unable to break above the $0.05 barrier despite the series of launch events this week. TRON is down to $0.044, its usual range, losing 7% in the latest shakedown.
IOTA (MIOTA) looks shaky and about to break below $1. The asset is the biggest weekly loser, with no news or hype to support the price. MIOTA sank by another 15% in the past seven days, to $1.06. The network has failed to produce any real value for months, and future promises no longer create the same enthusiasm, especially in a prolonged bear market.
NEO (NEO) is at $39.94, losing another 11% this week. Despite being a platform coin, with some working projects, NEO has been unable to command prices comparable to ETH, and other platforms have also sank below the three-digit level.
DASH (DASH) is down to $245.52, losing about 6% this week, continuing to slide off the radar, with no chance of reaching 4-digit prices any time soon.
Monero (XMR) is down to $116.94, looking shakier and with a chance of breaking below $100 if the trend continues.
Binance Coin (BNB) has displaced all the rest, used as a safe haven and a hedge against BTC risk. BNB climbed 6% this week to $16.05, with an upward trend as traders are looking for spots to protect crypto gains.
In the past week, the crypto market showed that it has grown to a new level, but mainstream investment may be slow to arrive. Trading has become internal, swapping between assets, as some coins are used to store gains and protect them from unraveling. Therefore, the influence of exchange coins like Huobi Token (HT), BNB, or KuCoin Shares (KCS) has increased, and they are among the winners this week.
The increased influence of Tethers also shows a shift in the trading profile of many coins. The market has matured, and there are still opportunities, but easy 100-fold gains are not the norm.