Market Report: 3rd April 2019 — Subscribe to our newsletter.
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OUR TWO SATOSHIS
The daily view from our desk
There are many stresses to contend with during these uncertain times. Brexit is an obvious one. The Eye of Sauron being rebuilt in Denmark is another. You have book burning in Poland and the dystopian future depiction of Amazon’s drone service as well. But all is saved! There’s now lemur yoga in Cumbria, where you can escape the difficulties of modernity and relax with some long-tailed friends.
MORE MOON THAN DOOM
MARKETS ARE SIMPLE. MARKET PLAYERS ARE NOT.
What a strange week. Bitcoin markets are exciting and CNBC is nuanced. The mainstream media channel, infamous for its sensational, even if extensive, coverage of cryptoassets — mostly in its Fast Money show — went the extra mile yesterday and deserves praise. Why? While several analysts looked for sophisticated — but farfetched — explanations for the pump, CNBC went simple.
Aside from taking a jab at another CNBC reporter who amplified the April Fool shenanigan, the article’s author, Kate Rooney, interviewed an experienced CIO. And Arca’s Jeff Dorman shared that “this particular rally was caused by a “simple” imbalance of more buyers than sellers”. This “triggered stop losses and liquidations, which added more buy pressure”. Nothing new, but worth repeating.
MORE GYBE THAN HYPE
“SHORTS TO DUST, BEARS TO FRIENDS, WHY DO ALL DUMPY THINGS COME TO AN END?”
Meanwhile, the entire market continued to pump. The top 100 alts are up 7.9% on average over the past day, with Augur’s REP, BCH, and DOGE scoringwhopping 25% to 50% gains. Even Elon Musk went full bulltard after being votedas “CEO of Dogecoin”. Both events are not surprising. The latter because Elon, um, will be Elon, and because Dogecoin has the best whitepaper in the space.
The former because, as Vision Hill’s Dan Zuller reminds, “inter-crypto correlations will expectedly rise again” in this more volatile market. But, as you try to unearth unpumped coins, remember that even if bitcoin finally closed above the 200-day moving average — after five failed attempts over the past 12 months — it’s likely we are still in a sideways market, as Limitless suggests.
WHAT YOU CAN’T MISS TODAY
DON’T LEAVE FOR THE WEEKEND WHAT YOU SHOULD READ TODAY
▪ David Puell analyses Bitcoin’s velocity, i.e. transactions over circulating supply, and argues the original cryptoasset’s third cycle might be about to start.
▪ Mark Orcutt, from MIT’s Technological Review, analysed VCs and argues”venture capitalists are still throwing hundreds of millions at blockchains”.
▪ Roy Learner, from Messari, analysed different blockchain governance models and argues speculation markets may bring “efficiency gains” to governance.
QUOTE OF THE DAY
“THE TRADER WHO NAILED THE BTC TOP”
“Bitcoin chart. Buyable.”
- By Mark Dow, one day before the pump
Learn more about the famous trader here.