What’s been going on in the wonderful world of crypto this week? Well, starting with the markets…
The total market cap of crypto has started rising again after bitcoin bottomed out around $7,000. Last time that happened, market cap almost doubled from less than $250 billion on 1 April to $470 billion five weeks later. It’s too early to know whether this is a sustainable rise, but it looks like money is starting to come into the overall cryptosphere again: https://coinmarketcap.com/charts/.
One of the factors that will help that process is better on-ramps and off-ramps for fiat, and Bittrex has just announced it’s managed to get a USD banking partner: https://www.bloomberg.com/news/articles/2018-05-31/bittrex-gets-bank-agreement-to-help-you-buy-bitcoin-with-dollarsCustomers will now be able to deposit dollars and trade them against bitcoin, Tether and TrueUSD, another stablecoin like USDT (though not as controversial). Meanwhile on the other side of the world, no fewer than six Japanese public companies plan to launch crypto exchanges.
We’ve been seeing the ‘Bart Simpson’ patterns in the markets again. These are most obvious on the 1-hour chart and take the form of a fast spike up, a jagged top and then an equally swift crash. They have been a feature of the bear market for the last few months, and may signal manipulation by large players: https://themerkle.com/what-is-the-bart-pattern/The most recent Barts have lacked the downstroke, signalling that perhaps something else is going on now. The other ‘pattern’ to watch is the 6 pattern: the theory that a medium-term reversal happens on the 6th of every month: https://telegra.ph/Sixth-Sense-05-30
There’s been some interest in bitcoin as an early warning system for problems in the wider financial markets: apparently, there’s a strong correlation between bitcoin 30 days ago and the VIX or ‘Fear Index’, a measure of volatility: https://www.cnbc.com/2018/05/29/bitcoin-is-the-markets-new-fear-gauge-investor-says.html
And lastly, the SEC has gone after Michael Stollaire, a self-professed ‘blockchain evangelist’ who conducted an ICO under the influence of thinking it was still 2015. Stollaire fraudulently claimed he had dozens of major partners including Disney and Boeing for his Titanium token sale (see