Market Report: 20th Sept. 2018âââSubscribe to our newsletter.
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CRYPTO NOTE
The daily view from our desk
Football fans rejoice, the Champions League has returned with lots of goals, drama and this burgeoning English talent. Is he a star in the making, could he eclipse the fame of Kylie Jenner if he goes another three years without eating cereal with milk? A group of Bristol students paid for a cleaner to go home for the first time in 10 years, you wouldnât catch a Londoner doing that!
A PERSPIRING EXPIRATION
How the expiration of traditional Bitcoin futures still impacts the market
What a delightful day. We have covered Bitcoin futures since last December and considered yesterdayâs expiration of the CBOE Bitcoin monthly contract to be a non-eventâââlike it was in Mayââânot worth signalling amongst all the crypto-noise. In one way, it ended up being quite unremarkable, with BTC sitting just 0.8% above the level it was 24 hours ago, and the top 100 projects appreciating only 0.2% on average.
But it was also noteworthy due to the intra-day volatility it caused, with BTC dropping 3.5% in less than one hourâââto an exact bottom of ÂŁ4.6k ($6.1k) on Bitfinex. However, the more interesting aspect was the explosive 7.4% jump that followed, around half hour before said futures contract expired. Whalepool argues CBOE doesnât have the volume to influence the market, but Josh Olszewicz claims that volume is not what matters here.
TRADE ME UP INSIDE
Call my office and save me from the insider trading. Bid my bulls to run
To add fuel to the fire, Kraken, an exchange used to calculate CMEâs Bitcoin futures price index, claimed that such wild action was related to the NY State Attorney General report we shared yesterday. Focused on the integrity of crypto markets, it concluded that most platforms have conflicting interests and allow abusive trading. The vocal cephalopod even implied insider trading among the Attorney General office might be to blame.
However, itâs possible that a simpler explanation is at play, as this moveâs outcome was the quick liquidation of several shorts and longs, as Josh Rager notes. Bringing Occam to the rescue, Ramen argues the quick rise was likely caused by the liquidation of a 20x short someone opened at OKEX, an Asian-based futures exchange, right when bitcoin hit ÂŁ4.6k ($6.1k). At least no cryptoasset saw 94% gains wiped out in minutesâââpotâs top?
WHAT TO LOOK OUT FOR
Filter the noise and stay ahead of the pack
âȘ Curious about learning how supply and demand concepts can be applied to trading? BitDealer shares a simple example and points out additional resources you can explore.
âȘ It might seem like EOS has surpassed Ethereum âin terms of number of dApp usersâ, as Qiao Wang remarks, but En Hui Ong reminds us that the EOS network must be adapted in order to calculate such statistics, and Panek shows how most EOS transactions are spam.
âȘ Are you still following Ran Neunerâs CNBC Crypto Trader? If so, be critical and watch out for people that are presenting scams in the TV show, as Udi Wertheimer reveals.
WHAT TO READ TODAY
An insight a day could give you more profits to play
âȘ Are bears taking a toll on you? DonAlt shares some lessons everyone should have picked up in these harsh conditions, and LongHash argues why we should love this bear market.
âȘ Patrick Kershaw, a crypto investor, explainsâââon TokenEconomyâs blogâââhow cryptoassets can help solve the Problem of the Commons through âfriendly AIsâ.
âȘ David Chaum, the creator of eCash, the first successful form of digital cash, claims he has developed a better cryptocurrencyâââElixxir. Adam TachĂ© summarises it here.
FOUNDATIONAL TRIVIA
Because the building blocks of crypto neednât be irrelevant
David Chaum is a famous cryptographer, father of cryptocurrency and cypherpunk. He developed the first successful implementation of private digital paymentsâââeCash, back in 1982âââand founded DigiCash in 1990, a company that aimed to profit from his research. Ironically, he is known as âthe man that turned down a fortuneâ.