Weekly Crypto Update — June 25th, 2018
Tags: Cryptocurrency, Blockchain, Ethereum, Bitcoin, Altcoins

By Steven Aitchison. Stevefirst got into the crypto world in 2015 and started trading in 2017 and now wants everyone to know the benefits of crypto with his course and hidden gems newsletter at: Learn About Crypto and Trading and his weekly hidden gems CYT Crypto Monthly he also started his youtube channel 5 months ago at CYT Crypto.

This Week In The Crypto Market

Just when you think there’s a little light at the end of the tunnel along comes the weekend to knock the wind out of the sails. Bitcoins price was coasting along quite nicely all week, with a high of $6,822 on Tuesday. However, the weekend brought some carnage and new yearly lows of $5,740 for Bitcoin.

Overall market cap plummeted from a weekly high of $294 Billion to a low on Sunday of $235 Billion.

Bitcoin’s dominance has gone up to 42% for the first time in two mnonths.

Top gainers of the week include:

Centrality: 58%

Basic Attention Token: 6.8%

Ethereum Classic: 4.9%

Enigma: 2.4%

Top losers of the week include:

Bytom: -37%

Bytecoin: -35%

PIVX: -29%

Aeternity: -29%

Populous: -28%

Aelf: -28%

Waykichain: -26%

Where is Bitcoin headed this week? That is anybody’s guess right now, but we can look at recent price action to give an educated guess.

It did have a bounce off the resistance line of around $5,800 and has been relatively stable above $6,000 for the last 18 hours. It’s not enough to say this is a turnaround and the start of an uptrend. We are still on shaky ground as far as Bitcoin is concerned.

The next support is around the $5,300 level, then the psychological $5,000 level. Can we go below $5,000? Yes, however I don’t think we will go below that level.

It’s not a great time to be trading alts just now but there are still great opportunities out there. Binance stayed relatively stable over the week despite the $1,000 drop and if you timed it correctly you could have traded in and out with some good profits So there are trading opportunities out there you just have to be careful.

Top News Stories

Regulated Cryptocurrency Custody Will Bring in Big Money: Hedge Fund Manager

Apparently, one of the last barriers to bring in big institutional investors is custodianship. In a telephone interview Hedge Fund Manager Kyle Samani told Bloomberg:

“There are a lot of investors where custodianship was the final barrier. Over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital.”

CCN.com states

“Regulated custody services allow institutional traders to open huge positions on the stock market without having to take personal responsibility over the custody of the funds. This allows hedge funds to give their traders millions of dollars without risking them flying to the Bahamas with it, and it helps prevent outside theft and accidental losses as well, essentially acting as an insurance policy for the millions and billions being traded every day.

Similar options are currently limited in the cryptocurrency space and institutions wishing to send their traders into the fray have to accept major risks in doing so.”

Bithumb Hacked: Again!

Wednesday of this week saw another hack on the South Korean exchange Bithumb, this time to the tune of $30 Million.

“We checked that some of cryptocurrencies valued about $30,000,000 was stolen,” Bithumb said on Twitter. “Those stolen cryptocurrencies will be covered from Bithumb and all of assets are being transferring to cold wallet.”

Bithumb currently ranks as the world’s sixth-largest and South Korea’s second-largest cryptocurrency exchange, with a daily trading volume of just over $330 million, according to CoinMarketCap.

SiaCoin Mining Malware Generates $800,000 In China Based Attack

Last weekend it was reported that a ring of cyber criminals in China had conspired with computer maintenance companies in the country to inject computers belonging to internet cafes with malware used to mine Siacoin (SC). It is claimed that the group managed to mine SC worth approximately $800,000. (Source: CCN.com)

UK Exchange Crypto Facilities Launches Litecoin Futures Trading

A cryptocurrency futures trading platform based in the UK called Crypto Facilities is launching a new futures product allowing traders to take positions on Litecoin futures.

Crypto Facilities CEO Timo Schlaefer spoke to CCN about the project.

“We have seen extremely strong growth in futures trading volumes, up 84% in Q1 2018 on Q4 2017, and we expect this to be at around 100% in Q2 vs Q1. Monthly XRP volumes are at around $125mm (up from $30mm in February).

We launched ETH in May and have seen significant adoption of the product and expect around $150mm in volume this quarter, which is approximately a 10% share of our total volume which is excellent for a newly launched product.”

Crypto Facilities’ current derivates offering includes Bitcoin, Ripple, and Ethereum futures, with Litecoin being the newest addition. (Source: CCN.com)

Bitcoin Plummets $1,000 in Weekend To Reach a 2018 Low

For the first time since November 2017 Bitcoin price dropped to a 2018 low of $5,740. It later bounced back above $6,000 to its current price of $6,140 (At time of writing).

How low can we actually go?

This will represent around a 70% fall from it’s all time high of $20,000. This happened in 2010 and 2014 when Bitcoin dropped from it’s all time highs and went 70% lower before rebounding to set a new all time high.

Is this the same scenario?

This price drop will attract new investors into the market especially institutional investors who would love to get their hands on a commodity that has dropped this much. I don’t believe we will go below $5,000.

Crypto Trading Tips

This weeks tip is simple but one of the hardest things to do as a newbie trader:

‘Sit on your hands and don’t trade’

There are a ton of trading opportunities out there including shorting the major cryptocurrencies but what a lot of us do is chase the losses.

It’s been a really tough few months in crypto but unless you know what you are doing this is not a time to trade. The best thing you can do at this stage is to learn about trading, gain more knowledge in the art of trading and develop the right mindset and then dip your toe back in the water.

Too many newbie traders out there who have had it good for some time are now starting to see their portfolios rekt and wondering what the hell is going on.

It’s easy to trade in a bull market but difficult in a bear market. That is why it’s essential to learn the art of trading and treat the education of trading more importantly than trading itself.