In what will forevermore be remembered as “Red Tuesday” on 16 Jan 2018, the markets had an epic crash of 30-40% average across the entire spectrum of coins. Total market cap dipped below $500 billion from an all time high of $800 billion just a week ago. The bleeding continued into Wed, though at time of writing it appears we have recovered a little. Bitcoin wavered and broke under the $12k support, then bounced strongly off of the psychologically important $10k support back to $12k. Theories for this crash abound, including:
- US cashing out to fiat to pay taxes (possibly related to January dip)
- Chinese (Lunar) New Year anticipated spending
- CME and CBOE futures manipulation
- Continued regulation concerns
- Bubble technical analysis patterns
- Whale games in general
The real reason is always a combination of all of the above (and more) to varying degrees. Useful right.. it’s a big market ¯_(ツ)_/¯
SEC Denies Bitcoin ETF
The SEC cautioned the creation of a Bitcoin ETF on Thu with a letter outlining tough questions for the would-be creators of the ETF (exchange-traded fund), including ambiguities in valuation, liquidity, custody, and possible manipulation. Blass, a Director at the SEC, “do[es] not believe that it is appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products”. No one wants to fuck with the SEC so another ETF attempt has been killed. The Winklevoss twins know.
Bitconnect Shuts Down
Bitconnect (BCC), once a coin with a market cap of more than $2.5 billion, has shut down their lending platform after surviving many accusations of being a Ponzi scheme, cease and desist letters from the UK government as well as Texas and North Carolina. Bitconnect’s official stance is that the combination of “bad press”, “Cease and Desist” letters, and “DDos attacks” have made the situation untenable. The coin BCC itself is still apparently worth something at $33 and a market cap of around $300 million, as there is some hope the platform lives on in some other form (Bitconnect X). Where will we go to get our guaranteed 40% returns now??
See you guys next week —
Crypto Weekly Roundup is for informational purposes only and does not constitute any investment recommendations.