Last week was once again a week for investors to forget. At the time of writing, only seven (more or less unknown) cryptocurrencies of the top 200 by market capitalization, namely credits (#130), SaluS (#126), MinexCoin (#110), ATMChain (#189), PayPie (#106), Emercoin (#81), Storj (#91) and the Stablecoin Tether, are in the “green” range.
Over the last week, Bitcoin has traded down 22.5 per cent against the US dollar.
Bitcoin Cash traded 5.6 per cent lower against the dollar and now trades at $1,000.13 or 0.11525900 BTC.
As such, while bitcoin has depreciated by 20.98 percent week-on-week, it’s notably not the top loser of the week, with TRON, ICON and IOTA ranking higher on bigger losses.
The remaining 192 cryptocurrencies of the Top 200 are in the red with 10 to 50 percent. We have already reported in detail on the reasons for the crash this week.
What are the reasons, here again briefly listed:
- Gox liquidates Bitcoin and Bitcoin Cash
- Announcement by the SEC that crypto currency exchanges are subject to the Federal Securities Act as soon as a traded crypto currency is classified as a security.
- Alleged Binance Hack
- Japanese authorities take action against 7 crypto exchanges.
What has had the greatest influence is difficult to judge. If you look at the mood on various social media platforms and forums, Mt. Gox “Sell Off” seems to be the most discussed topic.
Regardless of the impact of Mt. Gox’s 35,000 sold BTCs, we believe that FUD – Fear, Uncertainty and Doubt – may have had at least as much impact on the crypto market. The negative headlines did not contain any news that threatened the existence of cryptocurrencies or called their technology into question.
However. For comfort, Mt. Gox is unlikely to sell BTC until September 18th.
Good news is that, the next court proceeding for Mt Gox bankruptcy won't happen until Sep 18, 2018. Before then, Nobuaki Kobayashi will not have authorization to dump the remaining 160k #Bitcoin $BTC on open market.
— Coin Panda (@8bitandstuff) March 10, 2018
Contrary to the numerous negative headlines this week, however, some positive news has also emerged showing a growing adoption of cryptographic currencies into the mainstream.
In Australia it is now possible to buy Bitcoin and Ethereum at a total of 1,200 newspaper kiosks. Taiwanese airline Far Eastern Brand has announced that Bitcoin and other cryptocurrencies will be accepted as means of payment when booking flights. South Korean tech giant Kakao has also announced plans to introduce cryptographic currency payment in the cocoa apps this year.
Furthermore, individual cryptocurrencies such as Stellar, TRON and Ethereum were able to announce positive news, announcements and development updates.
Considering all the circumstances, we believe it is only a matter of time before this week’s cryptocurrency market will recover. True to the motto “Buy the dip.” In our opinion, this is therefore a very good opportunity to either enter the cryptocurrency market anew or to buy individual cryptocurrencies with a long-term potential at a very low price.
The winners of the week
This week we would like to leave aside our usual description of the biggest winners of the week. As written in the input, only seven cryptocurrencies plus tether for the last seven days are in the green area. In our opinion, these seven have yet to prove themselves. For the past week, we would like to focus on which cryptocurrency was able to report the greatest and most significant development progress.
For us, the biggest winner this week (not chart-technical) is Ethereum. In the long term, and especially in 2018, Ethereum could be a promising investment. Already in the past weeks there has been a lot of good news about Ethereum’s development progress and plans.
Three weeks ago, the Ethereum Community Fund (ECF) was announced. The ECF is intended to promote the further development of the Ethereum infrastructure and the development of decentralized applications on the Ethereum Blockchain and thus to strengthen the Ethereum network in the long term. This week, the Ethereum Foundation announced the funding of 13 projects with a total of $2.5 million.
The biggest announcement this week came from Vitalik Buterin himself. At a conference, he explained that “Casper” and “Plasma” will soon be published and that sharding has the highest priority on the development agenda. With the release of the three long awaited upgrades, Ethereum could further expand its dominance over “competitors” such as EOS, Stellar, NEM and NEO and take a huge step forward by creating the technical prerequisites for mainstream use by millions of people.
Another very ambitious project with many promising upgrades is Stellar Lumens. The roadmap for 2018 published at the end of January and the February Round-Up for 2018 foresee the launch of the Stellar Decentralized Exchange (SDEX) and the implementation of the Lightning Network on the Stellar Blockchain. In the long term, Stellar could therefore be an undervalued coin at a current price of around $0.30 in 2018.
Losers of the week
In our view, measured by the weekly price losses this week, there is no sign of any particular loser. For us, the loser of the week is clearly the entire cryptocurrency market, which was so unsettled by some rumours that at times more than 100 billion US dollars in market capital was burnt.
The second loser of the week for us is Bitcoin Private. After the ZClassic exchange rate was temporarily pumped to 200 USD per ZCL in January, the ZClassic exchange rate was approximately 110 USD on February 28, at the time of the snapshot.
The Bitcoin Private (BTCP) price started yesterday at around (65.82 USD) and is currently at 62.16 USD*. Investors who have speculated on making big profits from the fork will probably be disappointed with this price.
Weighing the Week Ahead
Also this week we would like to inform in our outlook which data could become important in the next week.
BreadWallet Token – BRD
BRD is a token sponsoring TokenFest, March’s largest crypto event. Major events like TokenFest provide the perfect opportunity for surprise announcements. BRD has hinted about adding Litecoin (LTC) and Ethereum (ETH) along with ERC-20 based tokens to their wallet for many months. Although speculative, it is likely they have a big announcement for the TokenFest conference coming up in under 10 days.
The Digibyte “One Click Miner” software is expected to be released next week. The One Click Miner is designed to make it much easier for newcomers to start mining by providing a pre-configured setup. For the GPU-Miner you only have to select a mining pool and then you can start with the mining immediately. A first impression of the very simple user interface is provided by the screenshot of the beta version from the end of February.
You know when people make promises and never deliver… Well I deliver! #digibyteoneclickminer beta version 2 is working and being tested currently! More Design and Bug fixes being done before release. Should be real soon for Version 1 @DigiByteCoin #digibyte #CryptoMining $DGB pic.twitter.com/i0eztWWHAu
— Patrick Wieland [DGB] (@PatWielandLIVE) February 28, 2018
Hearing of the US Congress:”Examining the Cryptocurrencies and ICO Markets”
Next week, a further hearing on the topic of cryptocurrencies and ICOs, entitled “Examining the Cryptocurrencies and ICO Markets”, will take place in front of the Financial Services Committee, a subcommittee of the US Congress. Witnesses to the Subcommittee will appear on 14 March:
Dr. Chris Brummer, Professor of Law, Georgetown University Law Center
Mr. Mike Lempres, Chief Legal and Risk Officer, Coinbase
Mr. Robert Rosenblum, Partner, Wilson Sonsini Goodrich & Rosati
Mr. Peter Van Valkenburgh, Director of Research, Coin Center
According to the pre-announcement, the subcommittee would like to receive a further overview of the markets for cryptocurrency and initial coin offering (ICO). The topic will be the possibilities for investors and companies to benefit from cryptocurrency and ICOs. In addition, the current regulatory approach of the authorities, such as the Securities and Exchange Commission (SEC), will be investigated.
Even if no groundbreaking announcements are to be expected, the deadline could provide an indication of how regulation in the USA will develop in the future.