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Market Report: 7th Jan. 2019 — Subscribe to our newsletter.
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OUR TWO SATOSHIS
New year, new takes on Britain’s strangest news
Happy new year daily market report readers! Looking for creative ways to exercise more this year , why not try underwater hockey? Or how about being more grateful in 2019, like Christian Bale. Or if you’re just trying to avoid getting arrested, don’t bribe cardboard cut-outs of police officers or label a box, containing drugs, ‘not dope’.
2019’S NOT-SO CONSTANT PUMPS
Some believe reversal is around the block. Is that the case and if so why?
And we’re back! Total market cap — the unpopular but useful metric to compare prices over time — is up just 3% since the last newsletter was sent out — December 21st. But the last couple of weeks were not boring, as the volatility yoyo keeps moving up and down. And, most importantly for the bulls, these weeks have seen a continuation of the bounce that bitcoin saw after it hit its 2018 bottom.
Such recovery has been mostly associated with two factors. On bitcoin’s side, due to the development of an inverted “head and shoulder” meme pattern, a scenario Ramen of Binance deems unlikely. The popular market cycle analyst argues the crypto market leader will see a double top that will mark another leg downward. If you want a more agnostic take, we recommend Josh Rager’s perspective on the matter.
ETHEREUM’S NOT-SO CONSTANT FORKS
Constantinople is around the block. What to expect and when?
On ether’s side, as Alex Krüger explained, some are seeing Ethereum’s upcoming hardfork, dubbed Constantinople, as a bullish event. This consensual upgrade will take place on January 16th and it will activate five EIPs, or Ethereum Improvement Proposals. One of these will reduce miner’s block reward from 3 to 2 ether, reducing supply — something bulls are appreciating as it diminishes ETH selling pressure.
However, others believe ether’s strong bounce is independent from the fork. Anyway, what’s certain for now is that volatility won’t decrease until the fork takes place — at least considering what happened with Ethereum’s past planned upgrades, as LongHash visualises. With this in mind, check Mr. Chief’s scenario of what can happen to ETH if bears get their way with this potential trap.
WHAT YOU CAN’T MISS TODAY
Don’t leave for the weekend what you should read today
▪ Decentralised Finance has always been a key Ethereum theme. But recently #DeFi seems too speculative. Fortunately, @cryptorae brings some sanity to the conversation.
▪ Still hodling? Alex Krüger walks you over easy methods to time the market that often delivers better returns than buying and holding. It’s all about following the trend.
▪ A few days ago, news broke that the online store of Fornite — one of today’s most popular video games — started accepting Monero. But it was just an accident after all.
▪ Joel Monegro from Placeholder, a VC firm, shared a neat model to understand how value flows between cryptonetworks called “The Cryptoeconomic Circle”.
QUOTE OF THE DAY
The big picture is less gloomy day-by-day.
“I think we’re in the process of finding the bottom on the large, liquid, and lasting crypto-tokens. But that process could take much of 2019 to play out. We’ll see some bullish runs, followed by selling pressures taking us back to retest the lows. I think this bottoming out process will end sometime in 2019 and we’ll slowly enter a new bullish phase in crypto.”