Daily Crypto Update — Unsteady Crypto Market (5th Sep ‘17)
Market Performance (Global Market Cap):
- 24-hour gains: -7.9%
- September gains: -12.9%
- Year to date gains: +753.7%
Portfolio Performance:
- 24-hour gains: -5.2%
- September gains: -8.3%
- Year to date gains: +1,400.1%
The market is feeling unsteady at the moment. After many coins were sold off in two waves this week, triggered firstly by $5k Bitcoin profit taking and then China announcing they have banned ICOs, the Global Market Cap bounced back from a low of $134.8bn to $152.9bn.
The tiers within my portfolio have shown quite distinct differences in performance. My top tier of stable coins has dropped -1.4% while tiers 2 and 3 have risen by +5.8% and +6.2% respectively. There isn’t any real underlying reason for this other than when the market drops; the smaller altcoins tend to fall the most, so as the market has rebounded, they have also rebounded back more though some coins are rallying, particularly Komodo and Syscoin.
Still, I have an unsteady feeling as my top tier coins are not recovering at a consistent rate and the bounce feels like it is running out of steam. I have been tracking behind my money off the table, 5 for 25% and as such sold off a few assets today. While the market may recover over the next few days, I felt it would be best to sell off some good performing coins and bank some money. I also closed out a crappy trade I made without any real research into Monacoin.
Trades:
- Dash: 25% of position for a profit of +176.4%
- Komodo: 30% of my position for a profit of +142.4%
- Syscoin: 30% of my position for a profit of +283.8%
- Monacoin: 100% of my position for a loss of -41.6%
The first three are all significant positions and as such an easier place to take profits from, where as the trade in Monacoin was quite small. I am now tracking my money off the table position at 18.6% so I will need to sell out some more positions this week.
It feels like we need Bitcoin to start driving back towards and hold above $5k for the rally to continue. While it defended the $4k marker, it did find resistance at just under $4.5k. If it can’t hold and tests $4k again we could lose support and this may trigger further drops across the market.
I am nervous that many altcoins are overpriced and will continue to watch the market carefully. If a wider selloff does trigger, I will start selling more assets and moving more into my stable tier 1 coins. This will be a day by day watch and act strategy. If we enter a correction like June/July, I want to put in place those actions which would have helped my portfolio perform better during that time but also be in a good position to reinvest during any recovery.
I expect we are going to have to wait a few days to let the market settle and see where we go next. I think the ICO news will continue to impact individual tokens; Coin Telegraph reported that up to 60 ICOs are currently in limbo. As I mentioned in my vlog yesterday, I think this is a good thing, too many ICOs are coming to market, they are hard to keep track of and are diverting attention away from other established high-quality projects.
NEO continues to suffer from the news regarding China banning ICOs, while it has bounced back from a low of $18.46 to $22.82, it is way down from August 15th where it hit $50.10, a drop of -54.5%. The team released a press release to reassure investors, but it may fall further before recovering. I am watching as I still hold a position and would still reinvest. I believe NEO is in the best position to work with Chinese regulations.
After the Bitcoin $5k retracement I wanted to wait a few days to see how the market reacts but with the additional Chinese ICO news I am going to ride out another couple of days to see what happens.
If every crypto coin is going to tank, just who is going to do the buying? I mean someone has to have the guts to buy currency that is backed by nothing and whose price keeps sliding.
Well there are always buyers at a price, think of pricing as a voting mechanism where people are voting at what prices they are willing to buy, the market then finds its price from this.
Though to say it keep sliding is way off the truth, it has been growing for 9 years and is up +1,000% in a year.
Backed by nothing is also not true. All currency has different inherent value and many of the Crypto tokens which support services derive value from the cost of the service.
Well what you are saying is true, but in the article you do talk about prices going down that's why I said what I did, to me this crypto market is like they say "It is a riddle, wrapped in a mystery, inside an enigma; but perhaps there is a key" I believe no one really knows where it's going unless it is being driven a certain way by people we don't know about and these people do know, but the prices just change for no apparent reason, I have seen no pattern, I keep reading about waves but that doesn't work until after the price changes then a lot of people will tell you why it happened. I know a lot of people have made tons of money here but I would figure it was more out of luck and holding on out of sheer stubbornness than logical thinking. As for the value thing, it only has value as long as people give it value, if people lose interest it just ceases to be of any use. I am not trying to be critical, I just write what I think, and in reality my knowledge of this world is minimal at the most.
Hey man, it is a valid view and many share it. For me, it is a highly speculative market, but then the stock market is speculative, all markets are speculative. Prices are wild and definitely manipulated in the short term but the long term the prices tend to reflect the opportunity. I expect, like the DotCom bubble that when it finally bursts the real survivors will be the ones that change the world. Crypto isn't going away.