Weekly look at Crypto
Minneapolis Fed President Neel Kashkari told a panel discussion at Montana State University last week that cryptocurrency market was like “the Wild Wild West.”
“I could go tomorrow and create Neel coin, you’ve got BitCoin, you’ve got thousands of these coins that have been created. They’re basically garbage coins because there’s no barrier to entry preventing you or me to creating our own flavor of ice cream,” Kashkari said.
Bitcoin price dropped dramatically after investors showed an unenthusiastic to the launch on September 23 of physically-settled bitcoin futures by the New York City-based Bakkt, a cryptocurrency exchange platform developed by the Intercontinental Exchange Inc. Intercontinental (ICE) is owned by New York Stock Exchange.
The fall since has continued as the price BTCUSD price took a nosedive to a three-month low on Monday, going as low as 7700 dollars. Information available at Bakkt’s website shows that during the first week of trading, it could sell only a total of 165 contracts.
A similar pattern had shaped back in December 2017 when Chicago Mercantile Exchange (CME) began issuing its bitcoin futures, leading to a sell-off that saw price fall off from the 19000 highs to below 17000 dollars.
In a move, that is meant to bring some form of self-regulation to the markets, some US exchange companies, organized under the name “Crypto Ratings Council” are set to publish from Monday on online ratings of digital assets on a scale of 1 to 5. Among the firms are Coinbase, Kraken, Circle Internet Financial and Bittrex, all based in the US.
That according to Wall Street Journal will be based on a system developed to rate which assets the companies will allow to be traded or not on their platforms.
“The highest value signifies the token as a security that unregulated crypto firms can’t issue, sell or trade. Issuers won’t have upfront input in the ratings, although they can provide information to dispute a score their token received,” WSJ reports. Bitcoin, for example is rated at 1.
Minneapolis Fed President Neel Kashkari’s last week remarks at Montana State University that he did not worry crypto currencies will replace the US dollar, and his description of crypto markets as dangerous as the wild west caused a downward break in leading digital currencies’ values. The sell-off pressure in Bitcoin came down as low as and even below the 8000 region. The levels at 7700 and 7400 regions continue to support, as we will be monitoring 6950 level if the fall goes on. In the case of a possible rebound, 8300 and 8520 lines will be watched for resistance. 8890 level will be followed if the price rise exceeds this region.
The effect of the breakdown in digital currencies continues in EthereumCoin, too. As the sell pressure continued in Bitcoin and other leading cryptocurrencies, Ethereum retreated to support it at 152.00. In the event of a continuation to the medium-term sell trend, we will be monitoring the 147.50 and 141.00 regions. The level 177.80 remains important in terms of resistance to possible upward movements, 182.90 and 185.50 regions will be decisive if the increase in price exceeds the first resistance.
As the sell pressure in LiteCoin loses momentum, the impact of withdrawals in Bitcoin and other leading currencies continues in a limited fashion. The downward movement in the asset will find support in the 50.75 region. We will be monitoring the 45.50 and 47.30 levels if the pressure intensifies. In the event of potential upward moves, 57.30 and 60.70 regions remain important. Further up we will be following the 63.00 level.
Sell pressure reached the bottom band in DashCoin. After the horizontal break-out in Bitcoin, the horizontal trend had an impact also on altcoins and caused DashCoin to reach the lower band. In the current sell pressure in the coin, we follow the level 64.7660 as a support. If the price breaks that region, we will be monitoring the levels at 60.0000 and 57.7000. At the same time, 75.1000 and 78.6000 regions remain important for resistance in possible upward movements. We will follow the 86.0000 level if the price exceeds this region.