CV Market Watch™: Weekly Trading Overview (9-16 November)
A routine hard fork to update Bitcoin Cash (BCH) triggered chaos on the markets, leading up to a $1,000 crash in Bitcoin (BTC) in the middle of the week.
The crypto market had another heavy shakedown in which Bitcoin (BTC) slid and led to a crash in altcoins. BTC prices moved down from their stagnant positions around $6,400 and crashed into the $5,300-$5,400 range at the lowest.
Bitcoin (BTC) moved from minimal change to high volatility without warning. BTC was down 12.36% this week, though only after recouping some losses. Ahead of the weekend, the leading coin started a recovery, reaching $5,612.68.
The share of USDT trading expanded reached a temporary peak during the sell-off on November 14, reaching about 60% of volumes, as traders sought a safe haven. Volumes peaked above the equivalent of $8 billion. The Bitcoin network also saw a significant transaction load, as the hashrate moved away to support the Bitcoin Cash competition of alternative chains.
XRP (XRP) regained second place by market capitalization, following significant price weakness in Ethereum (ETH). XRP’s losses were only 5.85% this week, trading around $0.47, as the launch of xRapid in October has been boosting prices.
Ethereum (ETH) showed its weakness as it reached a weekly low on Thursday at $170.19. ETH has been hobbling along, as mining profitability drops and scalability is lagging.
Bitcoin Cash (BCH, BCC) finally reached the expected hard fork date, and now exists with two chains of different lengths trying to find a way to coexist. Exchanges and users are still uncertain on which asset would be the official one. BCH fell to $403.25, down more than 28% this week. BCHABC, the updated blockchain, reached $292.37, while BCHSV quickly gained ground, within a day rising to $112.32, after touching lows around $80. The two new assets still exist only on exchanges, and there is little clarity on how Bitcoin Cash transactions would work in the future.
Stellar (XLM) was one of the faster-recovering assets, growing by 8.98% on Friday alone to $0.24, near the coin’s usual range. News of a transition of the Kik chat app to a Stellar-based technology, along with willing buyers, is once again boosting XLM.
EOS (EOS) broke down to $4.58, losing 15% this week, following the general negative direction of the markets. EOS is relatively less volatile, as some coins managed to wipe out more significant funds.
Litecoin (LTC) fell to $43.23, down 16.96% this week, and stabilized around the new level. LTC continues its long-term series of price drops, never moving to a higher range again.
Cardano (ADA) unraveled its recent rally, sinking to $0.062, down more than 17% in the past week.
Monero (XMR) felt the sell-off significantly, sinking to $88.23, down more than 17%, again due to panic selling.
TRON (TRX) fell to $0.019, abandoning the 2-cent level, as investors have given up on almost any chances of a rally. TRX also sloughed off around 17% of its price in a week.
DASH (DASH) down to $137.99, as the crash wiped out 17% of its value within the past week.
IOTA (MIOTA) fell to $0.41, losing 12% in the past week, as attention focused on BCH and altcoins were almost universally neglected.
Binance Coin (BNB) fell to $8.08, down around 15% in the past week, as the exchange saw massive selling.
NEM (XEM) was back in the game after Coincheck relaunched trading, reaching $0.11 at one point, before retreating to $0.09. XEM managed weekly gains of 2.56%, a feat among mass capitulation selling.
NEO (NEO) is down to $12.73, as the coin shows there are almost no factors to create hype again. NEO sank more than 20%, a comparatively deeper loss than the overall market slide.
Ethereum Classic (ETC) was down nearly 20% as well, to $7.58, as its presence on Coinbase once again does not prevent the prices from sliding.
The weeks of stability has not caused a rally - in fact, BTC prices showed a propensity to break down given relatively small pressures. Automated trading helps amplify the effect, and now altcoins once again have a long climb to recover the losses. Each shakedown makes market participants more skeptical, and the recovery is seen only in separate assets. In the past week, the Bitcoin Cash network became the first digital asset with two chains, in which the minority chain is not abandoned willingly, creating a unique exception to the consensus as described in Satoshi Nakamoto’s white paper. Now, markets will have to propose a price-setting mechanism for all the resultant assets.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.