Thursday 30th January, 2020
Cryptonauts Strap Back into Rockets
The crypto markets have continued their impressive run early 2020, with broad bullishness across the space. Ethereum classic is up almost 300% as a key top performer.
With many markets gunning for the moon neatly after the new year and Bitcoin almost back to 5 figures we are found asking ourselves if it is geopolitical conflict, the Gold price, the fragility of the global financial system, the Crypto presence at Davos this year (where the worlds influencers could see the caliber of individuals in the space), that it was a good time and price for a reversal (or all of the above).
Richard Galvin of DACM, twitter: @digiassetfund suggested that the digital gold thesis continues to gain traction on the move, as a response to the corona virus.
As the virus spreads, the latest figures are 170 dead with 12,167 cases. The virus has spread to many countries in small numbers and there is plenty of worrying footage going around of sick people, overrun hospitals and disruptions at airports and customs. Of course there are suspicions that China has downplayed the severity of the virus and the Lancet, a medical journal claimed the true mortality rate is closer to 11% than the 2-3% claimed in China.
The contagion has already spread to traditional markets, which have been soft. Gold had dipped but is back to ~1580 USD.
- Crypto market strong
- Bitcoin has punched through major levels
- Follow-through in alt-coins
Daily Bitcoin chart
After getting through the level just passed 9000 the market remains bullish to the resistance level at about 10,300 but could also retrace to the uptrend without anything being too strange.
Ethereum is up about 30% in 2020
Bitcoin cash is up about 90% in 2020
XRP is up about 21% in 2020
Litecoin is up about 50% in 2020
BSV is holding up fairly well considering the magnitude of its move and its original reasoning being discredited, still up almost 300% on the year.
As we close in on the end of January, 2020 we have already seen the assassination of the second most powerful man in Iran, a potential viral epidemic, some efforts of a trade deal between China and the US, rumblings of an official Quantitative Easing version IV (comparisons to IV drip intentional), the attempted impeachment of the US President, an incoming British Brexit tommorow and a communist Bernie Sanders frontrunner as Democrat nominee for the 2020 presidential election.
The rumblings of some major instability incoming have gone on for some time and there are strong indications that 2020 could be the year. It ought to be good for crypto, but a few birds are looking for places to roost.