Another week in the cryptosphere has rocked up and it promises to be a busy one, as always! We’re here to bring you your regular weekly market outlook, complete with a look back at last week and what’s coming up. We’ll also give you a healthy dose of price analysis on some of our most popular trading pairs. Ready? Let’s go.
Market Highlight — Bitcoin Gaining Momentum?
It’s been a rollercoaster year for Bitcoin — when isn’t it?! October started off slowly but ended with Bitcoin booming from $7,300 to $10,500. We all know what happened next, as BTC swiftly dropped back down to $9,000, and is sitting slightly lower right now.
But even at current prices, BTC is lightyears ahead of traditional markets, even though they’re having a record year. Let’s take a closer look.
YTD Returns: US stock market 23% vs. Bitcoin 150%
Bitcoin sat at a meagre $3,400 in February, before rising to $13,800 in June. Despite a big drop since then, Bitcoin is crushing the traditional markets, as far as returns go. It returned 11.5% in October, compared to mid-2% returns for gold and the S&P 500. The S&P hit new highs to close the month, returning 23% YTD. Nowhere near BTC’s 150%.
Institutional investments inbound
You may recall that Bitcoin dropped to $7,300 toward the end of October, before skyrocketing all the way back up to $10,500 just three days later. It was a hugely important rally of more than 40% in just a few hours.
This boom was largely attributed to the impact of institutional investments in Bitcoin futures, with both the Chicago Mercantile Exchange (CME) and the Bakkt exchange posting record volumes during that period.
Many in the crypto world are hopeful that such volumes continue to rise, for the betterment of the market and the increased likelihood of mass adoption taking place.
Increased Mining Power on Its Way
October saw a 7.5% boost in Bitcoin’s hash rate. Essentially, this means that the computing power and security of the Bitcoin network was amplified.
This is happening because both existing and, crucially, new miners, are directing more computing power towards Bitcoin’s network. The fact that more miners are willing to invest capital into the network suggests that they, at least, are expectant that the value of Bitcoin will continue to rise in the future. Which is good news for crypto investors of all shapes and sizes.
At the beginning of last week (11.11), the total crypto market capitalisation stood at $239.89 billion. The market closed the week with a total market capitalisation of around $213.98 billion, which is a decrease by $25.91 billion (10.8%) over the week.
Our Hottest Instruments — Analysis
Our most traded pairs over the last week have been: BTC/USD, EOS/USD and LTC/USD. Now we’ll take a quick look at these instruments to find out what affected them last week and what might in the week ahead.
Last week wasn’t a very positive one for Bitcoin. Over the past few days, BTC bulls have bravely attempted to push back against the bears, but it’s not proven too fruitful, as of yet. The bears are winning the war right now.
At the time of writing, BTC is perilously hovering around the $8,500 mark. If the bulls don’t step up and bearish momentum takes the price to $7,500, there is a chance that we could see a further drop to as low as $6,000.
Last week was generally okay for EOS. A small rally on Friday added to the general consolidation pattern that’s been common throughout most of November. But there are still many key battles ahead.
At the time of writing, EOS sits at $3.47. If the bulls can push the price above $3.69, the EOS/USD pair can move up to as high as $4.25, with the next resistance line at $4.90. However, if the price breaks south of $3.35, a drop to $2.998 is possible, with the next support coming at $2.40.
Litecoin (LTC) has been in a similar pattern recently. It currently sits at $60.56, perilously above its next support line at $60.10. If it drops below, a fall to $50 is possible.
However, if the bulls mount a sufficient charge, LTC may break through the next resistance at $66.10. If that happens, we may see a move up to the $80 mark.
Crypto News — In Case You Missed It
- Nestle, Carrefour use blockchain to track baby milk products. Nestle and Carrefour will track baby milk products and provide consumers with data on their origins and movements “from dairy to shelf.” This follows on from a previous food tracking effort by the two companies, based on IBM’s Food Trust platform. Customers will be able to scan a QR code on the milk’s packaging to access a range of information, including sourcing information and product quality checks.
- Ukrainian Railways branch caught mining crypto with state power. A unit of Ukrainian Railways (Ukrzaliznytsia) has been caught diverting company electricity to mine Bitcoin. Law enforcement officials had discovered that branch employees in Lviv had secretly been running a Bitcoin mining farm, costing the state over $40,000 in power.
Crypto — Did You Know...
At the time of writing, there are at least 2,369 crypto coins and tokens out there, and that number is growing day-by-day. Some projects are more prominent than others and a large number of smaller tokens and coins are very inaccessible for trading.
At DSX, we currently offer access to nine of the world’s most notable crypto instruments, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), EOS and Bitcoin Cash (BCH). These crypto heavyweights are crossed with each other, five fiat currencies and two stable coins, forming 48 tradable pairs.
See you soon,
The DSX team