Bitcoin Pump & Dump and Probable Altcoin Retracing
By: Drew Boswell
Tags: Chainfund Report, Market Cap, Altcoins, Cryptocurrency, Bitcoin

Originally written by fund manager and founder Yann Quelenn. Chainfund Reports are communicated to investors prior to publication on Medium.

The Chainfund Report 26/12/2017

25.12.2017 Share Prices — Extreme: $225.27, Dynamic: $251.42

I hope you had a nice Christmas time with your family. We are now heading towards the last week of the year and 2017 will be remembered as the true emergence of the cryptocurrency market. The size of the market has gone up from $5 billion to $600 billion, growing more than hundred times.

2018 will also going to be massive for the cryptocurrency market. Please note that inflows of money will accelerate we should see a market of several trillions dollar by the end of 2018. This is why that from Q3, it will be very important to assess the potential risk of strong sell-offs.

Last week, altcoins’ volatility was very massive sometimes above 30% a day. Yet, the whole market is now consolidating. During this bloodbath, Neblio has been listed on Binance and has finally set-up a new all-time high around 8 dollars. By the way, thanks to Khoa, we are now staking Neblio and earning a 10% dividend on this position.

General views on Bitcoins and pump & dump

In the mainstream newspaper, I can read “Is the Bitcoin bubble bursting?” If only it was a bubble… The price has retraced below 12k before bouncing back higher. I still expect it to go below 10k as I believe Smart Money are now looking for to enter the markets and would of course try to enter with prices as low as possible in 2018. I recall that manipulation is massive on the cryptocurrency market and that many market participants are running after the next coins that will grow10-fold.

Lately, John McAfee was tweeting everyday about cryptos. In particular, the former Cybersecurity CEO triggered a massive FOMO on Verge currency — A privacy coin -. Yesterday, during Christmas time, some fake news regarding Verge have also sent the coin from 25 cents to 9 cents on fear that the “Wraith Protocol” won’t ever be released (This is a feature about the possibility, within the Verge network, to activate anonymous transactions). This is just to say, that this is the Wild West and that greed prevails. We rather focus on long-term projects.

As of the 1st of February, I recall that I will be working full-time on the Fund and as a result, it will be much easier to take advantage of such move. I will of course do not risk big amounts of capital.

My general view for the next few weeks:

Bitcoin should be pushed lower so that Smart Money comes in at lower price during the first two weeks of January

Altcoins should retrace as well during the potential Bitcoin sell-offs on fears of a “Bubble burst”. From the third week of January we should see continuous increase and new all-time highs for Bitcoin and other altcoins.

Have a nice last week of the year,

The report will be send next Tuesday, a day after the 1st.

Yann

Ps: During January, please also note that I will describe better our strategies and investments for the Dynamic & Extreme portfolios