Weekly Crypto Market Musings — Jul 6-Jul 12, 2019 – Crypto Market Musings
Crypto market in the past week has been filled with bearish sentiments, which has taken the likes of BTC and ETH through an absolute thrill ride with heightened volatility. Nearly all of the top-tiered crypto suffered an averaged 10% loss on the week, among which are the biggest losers of the week, including BSV (-17.8%), EOS (-16.9%), and XEM(-14.6%). Bitcoin remained as the sole survivor on the list that returned a slightly positive payout (1.8%), on top of snatching a 35.9% return on the month, continuing to exert its dominance over altcoins.
Throughout the week, we witnessed numerous BTC pumps: BTC started off the week being fairly range-bounded, consolidating around 11,000 and reached 12,000 in morning of Jul 9; merely one day later, BTC broke through the 13,000 ceiling on Jul 10, a level which turned out to be nothing more than a pit-stop for a few hours, before going into days of correction back to 11,600 at the time of writing. Coincidentally, almost all of the bumps were preceded by Tether Treasury minting new USDTs, where both events happened merely a couple of hours apart from each other. Tether’s market cap is currently sitting just above 3.8 billion. Something fishy is in the air, could it be the deja vu of another Bitfinex price manipulation conspiracy theory? Curiously, according to Bitfinex’s net BTCUSD positions, more longs are being held compared to a week ago. An 18k net long right now might suggest one of two things, the accumulated long positions previously in the leveraged space are shifting towards spot positions following recent washouts. The other theory, which could be in play with what has been going on with Bitfinex as well as Tether, is that speculators might be betting for another episode of Bitfinex’s widened premium over other exchanges (which at one time reached ~8% intra-day).
The regulatory news looming in the crypto community has mainly been focusing on Tether and Libra. On Tuesday, NYAG submitted a report with conclusive evidence that exhibits Tether and Bitfinex dealing on illegal trading. Bitfinex, Tether and its affiliates must submit a response to NYAG’s latest motion by Jul 22, and the hearing will be held on Jul 29. South Korea’s Financial Services Commission stated that Facebook’s recently unveiled Libra project threatens the stability of financial systems. Earlier this morning, Donald Trump also criticized Facebook’s Libra cryptocurrency project in tweets on Thursday, saying it “will have little standing or dependability” and “not a fan” of Bitcoin and other cryptos, suggesting U.S. regulators would subject Libra, as well as potentially other exchanges and crypto projects to regulation. Perhaps a glimpse of hope in the swamp of bearish news, CZ and his Binance team have announced on Thursday that margin trading is coming later this month, representing one of the last few crypto exchange behemoths left that has yet to reach into the realms of leveraged trading is finally getting its feet wet.