Bitcoin, Ether, and XRP Weekly Market Update: November 22, 2018
During the last seven days, we saw the biggest crash the in crypto market for 2018. Total market cap dropped with 32 percent, to $140 billion and all of the Top 100 currencies registered heavy losses.
Bitcoin is in a downtrend since November 14 when it broke below the $6,000 support line. It lost another 3% on November 15 and closed the day at $5,741. The BTC/USD pair dropped further to $5,656 on November 16 to closing the workweek.
The United States Security and Exchange Commission (SEC) took action against crypto startups for illegal ICOs. Paragon and another company known as Airfox (or CarrierEQ) have come to an agreement with the agency for failure to register their tokens as securities or their token sales as securities offerings. Both entities will pay $250,000 as all affected investors in either company will have an opportunity to request a refund.
This is yet another intervention by the agency. Last week, BTCManager reported the action taken against the cryptocurrency exchange EtherDelta due to failed registration as a national securities exchange.
On November 16, the SEC opened an investigation against Shapeshift CEO Eric Voorhees and cryptocurrency loans startup Salt Lending Ltd. The company received a subpoena earlier this year (February) by the SEC seeking to address possible illegal activities during the initial coin offering (ICO), use of proceeds raised from the ICO, and the manner in which Salt employees received tokens.
We did not see any significant price change in BTC during the weekend of November 17 and November 18 as it stayed in the $5,625-$5,655 range, 12 percent down for the seven-day period.
Without a doubt, the biggest news this week was the delayed lunch of Bakkt Bitcoin Futures platform for early 2019. The Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE), announced on November 20 that it would delay the launch of its much-anticipated bitcoin futures product until at least Jan. 24, 2019. The product was going to give US investors the opportunity to trade a physically-settled crypto futures product on a respected, regulated mainstream exchange.
On the other side of the coin, however, we had a bold move by the Swiss cryptocurrency startup Amun AG, which has been given the go-ahead to list a crypto index fund on Europe’s fourth-largest stock exchange, SIX Swiss Exchange.
Based on the reports, the Amun Crypto ETP, will have half of its assets invested in Bitcoin (BTC), while the other half will be shared between Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). Currently, there is no crypto-based exchange-traded product anywhere in the world. The ETPs are basically a derivative investments that are traded on securities exchanges, valued on the basis of a commodity, in our case – crypto.
Bitcoin lost 13 percent of its value on Monday, November 19 and another 7 percent on November 20, reaching $4,568, its lowest point since October 2017. The sudden crypto crash was in synch with traditional markets across the globe and especially in the U.S. where tech giants took a big hit and all of the so called FAANG (Facebook, Apple, Amazon, Netflix, Google) stocks entered a bear market.
The way to recovery will be slow and difficult and given the current circumstances and market sentiment, many analysists suggest further lows below the $4,000 level.
Looks like the $4,300-$4,500 zone is our short-term support. Upwards we see $4,800, then $5,000 before higher price levels are considered.
There were no major changes during the weekend of November 17/18 as the price was stable in the $176-$178 region. The third most valuable cryptocurrency was 15.5% down for the 7 day period.
Vitalik Buterin’s project drop was so dramatic that it also lost its spot as the second most valuable coin when it was replaced by XRP on November 15 when its market cap went below $18 billion.
ETH/USD pair experienced a sharp decline on Monday, November 19 and found itself at $150, 16 percent down. On November 20 it lost another 11% to reach $133.
Just like the rest of the leading cryptocurrencies, ETH price jumped a little on November 21 reaching $138, 3 percent up for the day.
Although it is hard to say where the market is heading, it looks like the coin found its current bottom at $130 region. From here $150 and then $175-$183 are important levels to seek.
After two consecutive days of heavy losses, the Ripple company token closed the November 15 trading day at $0.4895 up from $0.4834. It’s worth mentioning that during the day the XRP price dropped as low as $0.433, which proved the pressure was still there from sellers trying to push price lower. XRP once again overtook Ethereum in terms of market capitalization and became the second most valuable cryptocurrency on November 15.
They managed to do that on November 16 when XRP/USD stopped at $0.4781. During the weekend, however, bulls regained control and skyrocketed the price above $0.50 resistance, to $0.5157 on November 18. It closed the week with 1% gain, but remained relatively stable compared to the majority of the Top 100 currencies and especially Ethereum.
Additionally, Ripple signed a strategic partnership with CIMB Group, the fifth largest bank in the Association of Southeast Asian Nations (ASEAN), to facilitate instant cross-border payments across CIMB’s markets. According to the press release, Ripple’s blockchain-based cross-border payment network RippleNet will allow the company to connect to Ripple’s other customers, which are more than 100 now, and will enable a more transparent, quicker and lower cost payments experience.
On Monday, November 19, XRP/USD finally cracked under the heavy market pressure and lost 3% of its value. It dropped to $0.4431 losing another 4% on November 20, 2018. The Ripple token moved north on November 21 and gained 2% to $0.4536.
Downwards we can expect the October low of $0.38 to be the next major support. In an event of a bullish movement – $0.46 then $0.46 and $0.50.