Mine Digital Newsletter - A Bitcoin Rundown
February 18, 2020
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Mine Digital Newsletter – A Bitcoin Rundown

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Thomas Kuhn, CFA

Operations and Trading Manager

A quick update on Bitcoin after its pullback

After an impressive run to start 2020, Bitcoin has eased off since Friday, superficially breaking the up-trend it had established and stopping just below the levels we thought would challenge the asset.

Bitcoin has plenty of space to come off further and remain in an up-trend. The traditional markets definition of a bull market being one that has risen by 20% was well and truely surpassed in a move that was about 60% high to low – it is easy to imagine profit-taking, especially for large funds after a relatively short turnaround period. BSV was down around 33% in its turnaround high to low.

The Crypto Fear and Greed Index hit its high on the day of the turn, which was the highest reading since early August.

The current Fear and Greed Index is at a ‘neutral’ rated 49

Trading volumes week on week for the last 6 months are shown on the chart, with this year in the red box. Although they are not low, they are also not necessarily high. They may be starting to gain momentum, but it is hard to separate from the price improvement.

Month by month for the last 2 years show a low but stable daily volume in the last 6 months, with last month better than 3 of the 4 previously.

Bitcoins hashrate continues to improve, making higher lows in its momentum.

In other news, Russia has continued its campaign against cryptocurrency, linking crypto transactions with money laundering. The determined 1970’s-at-best state of strategic energy and military resources appears to shun non-military technological advancement with its guns and oil approach. Although cryptocurrency adoption is high in Russia and the region they have also talked about nation-wide bans.

Binance is launching a new product of Crypto Exchanges known as ‘Binance Cloud’ that would provide a turnkey crypto exchange solution with 5 days planning, demonstrating an interesting way that they are conceptualising the future of the industry. It may be at odds with other established views around the future of regulation and compliance and crypto coming closer to traditional finance.

In India where Crypto has also been restricted and potentially banned, the Indian Election Commission is rolling out a Blockchain Solution for their voting system.

And the S&P 500 continues to confuse with its relentless strength. Interesting times ahead for all!

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