The Fed continued to defy the basic principles of healthy financing and skip right through economics 101 last week. The most widely used stablecoin, Tether, gets punished, fined and framed for market manipulation for accidently minting $5 Billion more coins while the Fed injects a whopping $200 Billion into the economy in the name of market stimulation. Go figure. It's just one more example of how the printing press keeps churning away, making it rain over the 1 percent’ers, and leaving the everyday common man…well…the everyday common man. In fact, 98% of the current US money supply was created after 1959.
BTC ended the week down about 4% in price while the 'rise of the alts' solidified with the top alt coins such as BCH and XLM's gaining 0.53% and 16.42% respectively. XRP - the 'for now non-security token', managed to sneak in a nice boost in price over the past week with a 7% rise despite allegedly duping its investors. About time as XRP, for such a well-backed alt is one of the lowest performing 'top coins' issued this year tracking in at 50% YOY so far.
It's not just the US or Western hemisphere that seems to be worrying about an upcoming recession. While the US Fed cut rates for the 2nd time this year, the Indonesian Central bank cut theirs for the third time in 2019. BTC's daily charts seem to also be humming with the same nervous energy and this past week saw the 50 SMA line cross under the 100 SMA line for the first time since September of last year. You might be wondering, 'isn’t BTC suppose to have an inverse correlation with the equity markets?' (Why do people think this? Find out here). Then again, we've also seen asset classes converge during recessions so perhaps this is to be expected.
BTC formed an inexplicable doji candlestick on the hourly chart immediately after the fed announced its decision to further cut rates and continue printing more money. (What's a Doji candlestick?). It's starting to look more and more like most people don't really know what's going on. So who really knows? Maybe Patrick Byrne… The just recently resigned CEO of Overstock, one of the first major corporations to accept crypto and a pioneer behind Ravencoin (we just sponsored their biggest event!), just liquidated his stake to invest in “gold, silver, and two flavors of crypto”, as he puts it. One speculation is that perhaps he, along with a hoard of other traders, are gearing up for the launch of physically settled BTC futures on Bakkt which happens today. Is this yet another sign of mass adoption - we'll find out in the weeks to come...
We were surprised to see a lack of movement in the BTC charts after the US Fed cut rates for the 2nd time this year. On the hourly chart BTC formed a Doji candle around the time of the announcement meaning, essentially, that prices opened and closed at around the same price. The numerous Fed officials who were vocally against the rate cut should have helped boost BTC towards the upside, however, it seems that this time around the mindless decisions of the few over the economic well-being of the many didn't convert to a rise in BTC. Meanwhile, gold dropped 1.67% and the S&P 500 dropped 0.75%.
Never the less, BTC’s drop to $9,600 is still above the $9,400 support line that we have been seeing for the past few months. In fact, we have bounced up off that level 4 times since June. So, things aren’t looking that bleak just yet.
3 Things you should know about the Cryptocurrency Market
Finally piggybacking on the crypto movement this past week, Wells Fargo, announced that they will be launching their own version of a stablecoin which will be faster and cheaper than SWIFT.
The CME, Chicago Mercantile Group, has announced it will be providing BTC options on its BTC futures contracts starting in the first quarter next year. But you, our users, will already know that you have access to BTC options right here, right now, on our trading platform ; )
Cops in Australia now have the right to confiscate loose coins from cars due to “safety” reasons. You wouldn’t need to worry about this if you had digital coins…
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