Altcoins Weekly Analysis – Binance Coin, Ripple’s XRP and Tron’s TRX – 15/12/19

Ripple, Dash coin, Bitcoin, Monero and Ethereum

Binance Coin

Binance Coin slid by 8.18% in the week ending 14th December. Following on from a 0.57% decline from the previous week, Binance Coin ended the week at $14.37.

It was a choppy and bearish start to the week for Binance Coin.

Off the back of a 0.08% fall on Sunday, Binance Coin rose to a Monday afternoon intraweek high $15.96 before hitting reverse.

Binance Coin fell well short of the first major resistance level at $16.46 at the start of the week

The reversal saw Binance Coin fall in 6 out of 7 days, leading to a Saturday intraweek low $14.18.

Binance Coin fell through the first major support level at $14.79.

In spite of support kicking in late on Saturday, Binance Coin failed to break back through the first major support level at $14.79.

For the week ahead

Binance Coin would need to move through to $14.90 levels to support a run at the first major resistance level at $15.49.

Support from the broader market would be needed for Binance Coin to break back through to $15 levels.

Barring a broad-based crypto rally, however, Binance Coin would likely fall well short of $16 levels again.  Last week’s high $15.96 and the first major resistance level at $15.49 would likely cap any upside.

Failure to move through to $14.90 levels could likely see Binance Coin spend a 5th consecutive week in the red.

A fall back through last week’s low $14.18 would bring the first major support level at $13.71 into play.

Barring another crypto meltdown, Binance Coin should steer clear of the second major support level at $13.06.

At the time of writing, Binance Coin was down by 1.02% to $14.22.

BNB/USD 15/12/19 Weekly Chart

Ripple’s XRP

Ripple’s XRP slid by 5.08% in the week ending 14th November. Reversing a 0.94% gain from the previous week, Ripple’s XRP ended the week at $0.21728.

A bullish start to the week saw Ripple’s XRP strike a Sunday intraweek high $0.23387 before hitting reverse.

Falling short of the first major resistance level at $0.2359, Ripple’s XRP reversed Sunday’s 0.95% gain with interest.

Five days in the red out of 6 saw Ripple’s XRP slide to a Saturday intraweek low $0.21550.

Ripple’s XRP fell through the first major support level at $0.2165 before finding late support at the end of the week.

While breaking back through the first major support level, Ripple’s XRP ended the week at sub-$0.22 levels for the 1st time this year.

For the week ahead

Ripple’s XRP would need to move through to $0.2185 levels to support a run at the first major resistance level at $0.2208.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.22 levels.

Barring a broad-based crypto rally in the week, last week’s high $0.22163 and first major resistance level would likely cap any upside on the week.

Failure to move through to $0.2185 levels could see Ripple’s XRP spend another week in the red.

A fall back through to last week’s low $0.2155 would bring the first major support level at $0.2146 into play.

Barring a crypto meltdown, however, Ripple’s XRP should steer clear of sub-$0.21 levels. The second major support level at $0.2120 should limit any downside in the week.

At the time of writing, Ripple’s XRP was down by 0.05% to $0.21717.

XRP/USD 15/12/19 Weekly Chart

Tron’s TRX

Tron’s TRX tumbled by 7.72% in the week ending 14th December. Following on from a 2.76% slide from the previous week, Tron’s TRX ended the week at $0.013382.

A bullish start to the week saw Tron’s TRX rise to a Monday intraweek high $0.01480 before hitting reverse.

Falling well short of the first major resistance level at $0.01580, Tron’s TRX slid to a Thursday intraweek low $0.013316 before finding support.

3 days in the red out of 5, which included a 2.6% fall on Thursday pulled Tron’s TRX through the first major support level at $0.01380.

Steering clear of sub-$0.0130 levels, Tron’s TRX bounced back to $0.01470 levels on Saturday before sliding back to sub-$0.0140 levels.

In spite of the pullback, the first major support level at $0.01380 limited the downside in the week.

For the week ahead

Tron’s TRX would need to avoid a return to $0.0138 levels to support a run at the first major resistance level at $0.01430

Support from the broader market would be needed, however, for Tron’s TRX to break out form $0.0140 levels.

Barring an extended crypto rally, Tron’s TRX would likely fall short of $0.0160 levels in the week. The second major resistance level at $0.01580 would likely limit any upside.

Failure to steer clear of $0.0138 levels could see Tron’s TRX take another hit in the week.

A pullback to through the low of $0.013316 from last week would bring the first major support level at $0.01290 into play before any recovery.

Barring a crypto meltdown, however, support at $0.0130 should limit the downside on the day.

At the time of writing, Tron’s TRX was up by 1.28% to $0.014060.

TRX/USD 15/12/19 Weekly Chart

Bitcoin Hits $11,900 as the Bulls Look to Set the August Pace

Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Bitcoin rallied by 7.76% on Monday. Following on from a 1.4% gain on Sunday, Bitcoin ended the day at $11,824.

A particularly bullish morning saw Bitcoin rally from an early intraday low $10,973 to a mid-morning high $11,840.

Steering well clear of the major support levels, Bitcoin broke through the first major resistance level at $11,184 and second major resistance level at $11,395.

Of greater significance on the day was a breakthrough and hold above the 23.6% FIB of $11,275.

A more range-bound 2nd half of the day saw Bitcoin strike an intraday high $11,939 before easing back. The third major resistance level at $11,941 capped the upside on the day.

A bullish start to the month left the extended bullish trend intact. Bitcoin’s break out from the 23.6% FIB of $11,275 on the day reaffirmed the bullish trend formed at mid-December’s swing lo $3,215.2

Elsewhere

Across the top 10 cryptos, it was a Bullish start to the week for the majors.

Litecoin, EOS, and Ethereum were Bitcoin’s closest rivals on the day. Litecoin and EOS  gained 5.33% and 5.35% respectively, while Ethereum rose by 4.43%.

Bitcoin Cash ABC (+2.54%), Bitcoin Cash SV (+1.7%), and Tron’s TRX (+2.23%) also found strong support on the day.

While there were no trend-buckers on the day, Stellar’s Lumen (+1.45%), Ripple’s XRP (+1%) and Binance Coin (+1.49%) trailed the pack.

The broad-based crypto rally saw the total crypto market cap bounce back to $300bn levels. At the time of writing, the total market cap stood at $309.41bn.

Bitcoin’s surge towards $12,000 also led to a rise in Bitcoin’s dominance to from 66% levels 67.9% at the time of writing.

On the Crypto News Wires, crypto mom, SEC Commissioner Hester Peirce continued to support the crypto space on Monday. Talking at a digital asset conference, Peirce called once more for the SEC to give the crypto space room to evolve.

While the chatter was a positive, the timing of the latest crypto rally coincided with risk aversion across the global financial markets. The U.S – China trade war left the global indexes on the back foot following last week’s sell-off. The Dow tumbled by 2.9% alone on Monday to leave the index down by 4.3% for the current month.

While the likes of Bitcoin are not considered safe havens, times of strife have driven buyer demand in recent times. Of interest in the coming days will be whether there is further evidence of support from the escalation in the U.S – China trade war.

This Morning

At the time of writing, Bitcoin was down by 0.13% to $11,809.1. A bearish start to the day saw Bitcoin fall from a morning high $11,830 to a low $11,671.

Bitcoin steered clear of the major support and resistance levels early on.

BTC/USD 06/08/19 Daily Chart

For the Bitcoin day ahead

A move back through the morning high $11,830 would bring $12,000 levels into play. Bitcoin would need the support of the broader market, however, to take a run at the first major resistance level at $12,184.33.

Barring another broad-based crypto rally, Bitcoin would likely come up short of the second major resistance level at $12,544.67

Failure to move back through the morning high could see Bitcoin slide back through to the morning low $11,671.

In the event of a more material pullback, a slide through to $11,570 would bring 23.6% FIB of $11,275 into play.

Barring a crypto meltdown, the first major support level at $11,218.33 should limit any downside on the day.

G20 to Regulate Cryptocurrency Markets

G20 to Regulate Cryptocurrency Markets

The G20, an international forum for governments and central banks, has recently signed a declaration to regulate cryptocurrencies. The declaration was signed in Buenos Aires and covers many topics involving tax evasion, anti-money laundering, anti-terrorism, and public policy.

In Section 25, the declaration explicitly mentions cryptocurrencies:

“We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.”

The declaration also notes the benefits of an “open and resilient financial system” that the cryptocurrency industry offers. They are also wary of to over-regulate which may stump the growth of innovation. Other than a simple acknowledgment to regulate crypto assets, no details have been disclosed.

The G20 is a powerful forum that combines the leaders across 19 countries and the EU with a focus on “economic, financial and political cooperation,” according to their website.

What Does This Mean for the Future of Crypto?

There is no need for panic. Fortunately, many governments and large forums, like the G20, have not banned the use of cryptocurrencies and instead are looking to work with it. They are conscious of its positive impacts and are only looking to protect investors, while not halting the growth of the technology. While many cryptocurrency enthusiasts are strongly opposed to regulation, the reality is that it is required to bring in institutional investors and reach mainstream adoption.

Many institutional investors, especially hedge fund managers are waiting for clear regulatory guidelines before investing. For example, hedge funds that trade equities in the US are regulated by the SEC. Currently, Bitcoin is not identified as a security, which means that by law, hedge funds cannot invest in Bitcoin directly or recommend it to their clients.

Instead, institutional investors are waiting for an ETF, which is a security and in turn, allows them to speculate on the cryptocurrency markets. For an ETF to be passed by the SEC, the underlying assets need to have clear legal guidelines.

In a discussion about a cryptocurrency ETF, SEC Chairman Jay Clayton has mentioned, “We care that the assets underlying that ETF has good custody and that they’re not going to disappear.” This was said after acknowledging, “We’ve seen some thefts around digital assets that make you scratch your head.”

Moving forward, exchanges will need to work more closely with regulatory bodies to provide proper custodial, trading, and accounting services, as well as a moderate level of insurance in the event funds, are lost or compromised. With more legal and operational infrastructure, there is no reason an ETF will not pass soon.

Is Institutional Infrastructure Being Built?

Yes. According to CNBC, Fidelity is working on custody and trade execution solutions to bring operational ease for their clients.

Fidelity’s “goal is to make digitally native assets, such as bitcoin, more accessible to investors,” Chairman and CEO Abigail Johnson said. “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”

Coinbase has also launched Coinbase Custody which is another effort to simplify the process for storing and securing digital assets. Both regulators and service providers are working towards a more defined and practical future for digital assets. There is lots of activity with hundreds of millions of dollars being invested in this new industry.

Still, don’t be too relaxed. It is our responsibility to avoid over-regulation which can burden innovation and continue to promote the use of this global technology. We witnessed this first hand with the NY Bitlicense, which added large fees and cumbersome paperwork to the process for cryptocurrency companies to operate in the state of New York. As a result, many companies choose to operate outside of NY.

As long as the community stays vocal and involved, the future will be bright. We are excited for what is to come.

Don’t Mention the B Words – Cryptomarket Turmoil Grabs the Headlines

Bitcoin Crash

As the cryptomarket progressed through much of this year, a jump in volatility and a wave of bearish sentiment, following December’s broad-based cryptomarket rally, led to plenty of debate on whether Bitcoin and the broader market gains to record highs back in December was just a bubble ready burst.

Certainly, when comparing to the dot.com era and bubbles of old, more than 1,000 gains in a matter of weeks suggested that the gains were unsustainable and, while the Bitcoin bulls talked up the prospects of Bitcoin hitting the dizzying heights of $100,000 and more before the end of this year, the reality has certainly taken a bite.

Of particular interest is why few if any have mentioned the words bubble and burst, as for Bitcoin alone, a 75% slide from December’s all-time high would have shaken any of the major equity markets into submission.

To put it into perspective, the NASDAQ tumbled by 71% from its peak to trough in the dot.com meltdown and, while few will say that blockchain technology is worth less than the paper it’s written on, the reality is that many of the crypto coins traded across the crypto exchanges today are traded based on a white paper and concept, with few actually successfully transitioning from idea to tangible product. Perhaps that alone should be an alarm bell, particularly for market historians.

Even Bitcoin’s fight to become a viable alternative to fiat money seems flawed, with its lengthy transaction times and higher fees relative to some of the other cryptocurrencies looking for a slice of the real money pie.

So, while we can expect Bitcoin and the broader market to continue to find near-term support at such low price levels, investors continuing to believe that the next crypto rally is just around the corner, one does need to question whether the current market dynamics are sustainable.

Ripple’s XRP has shown greater resilience in the lead into and after the Bitcoin Cash hard fork and much of this has to be attributed to the team’s success in delivering an array of real-life blockchain products that have been adopted by institutions as a means to remit monies cross-border.

The team’s success is certainly far greater than any of its peers and to be fair, one does question why Ripple’s XRP has not replaced Bitcoin at the top of the crypto list by market cap, though it may just be a matter of time now and, if the general trend continues, the Ripple effect may evolve into a wave of support that could accelerate XRP’s ascendancy to the top.

We can expect investors to be licking their wounds following last week’s losses and Monday’s sell-off, which may well provide some early gains for the broader market this morning, but the reality is that investors may begin to wonder whether the latest sell-off and the effects of last week’s Bitcoin Cash hard fork on the broader market is reason enough to hold back on the Bitcoin ETF approvals.

Some institutional investors will be lining up for a piece of Bitcoin at sub-$5,000, but the smarter money may hold back for just that little bit longer, with even the more bullish of the Bitcoin bulls likely to be calling an end to the broad-based market sell-off in hope rather than certainty.

For those that are interested in the numbers, the cryptomarket cap has tumbled from last December’s $828.54bn all-time high to $159.72bn and, while this is obviously not an all-time low, it’s 2018 low and, when considering the continued rise in the number of cryptocurrencies, this market has been going in reverse through the year and it may take more than the SEC to stop the rot.

How to Take Advantage of the New Crypto Market Volatility

Market Volatility

Volatility has fallen by such an extent that the more mature global equity markets, including the U.S equity markets, are now more volatile and therefore considered to be a riskier trade.

While the lack of direction has left the crypto majors flat by historical standards, their volatilities continue to be well above those seen across fiat currencies, though not significantly above, which does provide an opportunity to incorporate more tried and tested trading strategies and a safer environment to trade.

Advantages of a Lower Volatility Trading Environment

While the heightened volatility across the broader market through late last year and much of this year drew the attention of more seasoned day traders, leading to an increase in daily volumes, the lack of cryptomarket maturity left traders and investors exposed to a number of trading pitfalls. The current environment has alleviated a number of these, though risks do remain and could impact the market at any given time, with governments and regulators not being required to provide forward guidance.

One can only imagine how the world of FX would be if central banks simply moved rates without a schedule and any forward guidance that has essentially become a hand holding exercise. No such luck in the crypto world, where governments and regulators have little-vested interest in abiding by deadlines, as has been the case through the 2nd half of this year, where both the G20 and the SEC have pushed back on key decisions that have ultimately resulted in the tight ranges across the crypto majors.

For those looking for 2,000% returns in a matter of weeks, there aren’t going to be too many advantages to the current trading environment, but for those that are looking to trade intraday on fundamentals, now may just be the time.

Trading on Fibonacci’s, the day’s major support and resistance levels and moving averages, amongst others, coupled with the use of leverage and stop loss options certainly makes trading a far less stressful environment, with the chances of one of the crypto majors sliding by more than 20% in a given minute significantly reduced. This also means that there is greater control on buy and sell orders than before, with the amount of slippage significantly reduced, allowing traders to place market rather than limit orders.

The bad news is that the slide in volumes also means that, for some of the major cryptocurrencies at least, liquidity has also fallen off the cliff, leading to a lengthening in execution times.

Trading with Cryptocurrency CFDs provides investors and day traders with access to the cryptomarket, but with margin trading and the option to go both long and short and with the technical analysis and appropriate trading strategies, the lack of wild swings provides a somewhat different, but not unfamiliar way of generating spreads.

There are still pockets of news that drive the broader market and individual cryptocurrencies, including news of upcoming hard forks and even planned inclusion or removal of cryptocurrencies from the more recognized exchanges, both of which can lead to material price action.

Moving away from the technical, one final and significant advantage is a greater emphasis on the individual product offerings and successes of a particularly blockchain. While we are yet to be in a world akin to the global equity markets that consider macro and impact on corporate earnings, there have been some recent moves suggesting a greater awareness of product offering and adoption.

A low cryptomarket volatility environment supports a greater emphasis on individuality, with price action determined by crypto specific events that may not impact the market as a whole and less by regulatory chatter, though until the regulatory landscape has been rolled out, the chatter will continue to be a major factor.

Final Thoughts

When considering the fact that one of the biggest pitfalls in cryptocurrency trading is the significant volatility, which has limited the effectiveness of developing trading strategies, the time is certainly ripe to begin incorporating the very strategies that may have had limited success just a matter of weeks ago.

Added to that is a likely cryptocurrency price convergence for the more frequently traded cryptocurrencies across the more liquid exchanges that account for the lion’s share of daily trading volumes.

While the positives are evident from a trading environment perspective, pitfalls do remain, however, with price manipulation, ICO pump and dumps and cyber theft all capable of impacting a particular cryptocurrency and, more often than not, the broader market, making it all the more important to protect the downside, irrespective of the trading environment.

XRP Daily Price Forecast – Ripple Forming A Higher Range

Against the U.S. dollar, valuations in the Ripple cryptocurrency (XRP/USD) look to be in the process of forming a higher range on the 4-hour charts. Thus far, November has been a very good month for those with long positions in Ripple.  After a period of slight correction (retracement), XRP/USD has found near-term support which may work as a platform in sending the crypto pair higher.  With the moving average cluster moving up to provide extra support under current levels, crypto traders can use these levels to initiate new buy positions near 0.49510.

  • Critical Resistance:   0.57000
  • Critical Support:   0.49510
  • Trading Bias:  Bullish
  • Bitcoin Crypto Strategy:  Buy at 0.51650 / 0.49510

Indicator readings in the CCI are actually showing a bullish divergence with the short-term thrust higher near 0.53000.  This is another positive factor which strengthens the case for a retest of the November 6th high at 0.57000.  This area is likely to encounter some profit-taking from those with long positions in XRP/USD.  But if we do manage to break above these levels, traders are likely to begin focusing on the previous double-top resistance (which has formed at 0.62250).

XRP/USD Chart
XRP/USD Chart

On the downside, a break of support at 0.49510 will target a larger move into the lows which were posted at the end of October (near 0.48800).  These lows mark a double-bottom formation which should provide some additional support if tested.  At this stage, the focus remains on the topside, and this will continue to be the case as long as support levels at 0.49510 remain intact.  Longer-term trends on the daily charts look to be based near current levels, and this strengthens the argument that markets are ready to make a push higher in the XRP/USD crypto pair.

The Best Altcoins

altcoins

Looking at the ICO market alone, there have been a total of 1,161 ICOs in 2018, at the time of writing, with total funds raised reaching a whopping $7.18bn.

In 2017, there were a total of 875 ICOs that raised $6.213m, an average $7.1m raised per ICO, compared with this year’s $6.18m. Going back to 2016, there were just 29 ICOs that raised a total of $90.25m, equivalent to an average $3m per ICO.

The growth is been exponential and with it, the number of altcoins that exist with little to no hope of ever going mainstream have also seen a sizeable increase, creating a minefield for prospective investors looking for a suitable investment that would be more of a long-term position than the short-term speculative trades that have fuelled the cryptomarkets over the last 12-months.

In the selection process of an altcoin, there are certainly some basic steps that are worth following, as one of the most important things an investor needs to do is to strip away possible scams and projects that will never get off the ground. After all, the ICO market is still largely unregulated.

Some of the key steps in peeling away the cryptomarket layers in search of a viable altcoin include:

  • Successful Initial Coin Offering: It goes without saying that selecting an altcoin that failed to successfully raise the required funds during its ICO are probably best left untouched, when considering the sizeable number of altcoins to choose from.
  • White Paper: The quality of the white paper, not just in terms of the team’s goals, but also what they are trying to achieve and why, with the appropriate technological detail is essential. A lack of a white paper or one with little detail that provides prospective investors with little on what will be on offer and how funds raised will be used should also be avoided.
  • ICO Rating: There’s no harm in reviewing analysis of the altcoin’s ICO and then assessing how the team has performed since fundraising, with successful completion of milestones, with little to no delay, a demonstration of strong capabilities to deliver the blockchain to market.
  • Sponsors and the Team: By viewing the altcoin’s website, you can evaluate the level of experience the team has and who stands behind the team, full bios being a must. In addition, regular updates on progress against the project roadmap will provide some insight into an altcoin’s prospects down the road.
  • The Offering, its Value, and Outlook: As is the case with any investment, it ultimately boils down to supply and demand. While the broader market largely tracks itself, driven by news and altcoin inclusion onto exchanges, the value proposition will become a major influence on the outlook for an altcoin and there have been some examples of altcoins outperforming the broader market due to successful adoption in the real world. Looking for solutions and product offerings that are likely to be adopted should be a consideration.

Looking across the broader market, there are a number of interesting altcoins that could see widespread adoption in the real world, and whose progress to date ticks the boxes set out above. Of the majors:

Ripple’s XRP (“XRP”): From the major altcoins in existence, Ripple’s platform has garnered the most interest to date, with Ripple delivering almost instantaneous cross-border money transfers with minimal fees. Ripple is in direct competition with financial institutions that have already begun to test the various platforms on offer. Transaction times are at around 4 seconds and transaction fees being equivalent to $0.004.

Stellar’s Lumen (“XLM”): Unlike true cryptocurrencies, the Stellar platform was developed to support cross-border transfers of value, including but not limited to payments. Chained conversions support multi-currency transactions, with Stellar’s Lumen being an intermediary currency. The Stellar network searches for the best available exchange rate on offer, which could either be a simple exchange from U.S Dollar to UK Sterling or via a chain, U.S Dollar to EUR to Swiss Franc to UK Sterling. Stellar’s Lumen is the intermediary between each individual link of the chain or between direct exchanges. Transaction times of between 2-5 seconds certainly put this high on the choice of platforms for cross-border transfers of value.

Litecoin (“LTC”): As a true cryptocurrency and in competition with Bitcoin to become the chosen alternative to fiat currency. Faster transaction times, a larger number of coins and early adoption by the market to remit cross border at speeds far greater than those on offer at financial institutions support longevity and relative price stability in more volatile market environments.

Looking across the rest of the altcoins, there are some value propositions that deliver interesting solutions to the real world, though significant uncertainty will deliver sizeable swings in price until there is some degree of traction. Some smaller altcoins by market cap, but nonetheless interesting include:

Civic (“CVC”): Developed to facilitate the better management of digital identities, incorporating blockchain verification technology to secure and protect the transfer of personal information. With so much data theft from the World Wide Web, a viable solution to identity protection is needed.

GIFTO (“GTO”): Developed to deliver a virtual gifting model, where the network is able to purchase virtual gifts with GIFTO tokens (GTOs) to transfer value to content creators on YouTube, Instagram or any other content / social media platform. The team behind GIFTO has already delivered Uplive, an existing non-blockchain platform that generates significant income for tens of thousands of content creators from their fan base.

The Steady Cryptomarket: Volatility Remains Low

Crypto market

Following last December’s record highs across the cryptomarket that saw Bitcoin strike an all-time high $19,891, things have not gone according to plan for the Bitcoin bulls and the broader market, with an extended bearish trend striking the markets through this year.

While bearish, with Bitcoin sliding to 2018 low $5,755 back in late June, the market was certainly energized with volumes on the higher side and news-driven moves seeing $1,000 swings in a matter of hours not weeks.

The volatility seen through the much of the year contributed to the uptick in volumes as investors and traders from other asset classes were drawn in to trade the daily swings that were sizeable when comparing to even the more exotic currencies and the global equity markets.

Key to the volatility was the news and investor reaction to chatter from both governments and regulators on the cryptomarket and the need for greater oversight and there are the hacks to fuel government desire for greater control.

China was banning just about everything, while Japan and South Korea introduced more stringent measures to address money laundering and worse. In spite of the shift in the regulatory landscape, volumes continued to hold steady as did the volatility, until October at least.

Few will argue that Bitcoin and the broader market need to go through a number of key events to draw in a wider investor group and, more importantly, the institutional money.

When looking at the global equity markets, by comparison, the Dow Jones is comprised of approximately 80% institutional investor money and 20% retail. For the Chinese equity markets, we’re looking at the reverse, 80% retail and just 20% institutional. There are hopes that this will change as the larger Chinese stocks become included into the MSCI Emerging Markets Index, a process ongoing at present.

Until this process is complete, however, and the stickier institutional money enters the market, the wild swings will continue, with even the Chinese government unable to halt the sell-offs we’ve seen in recent years.

While the good news for Bitcoin is that there are the Bitcoin whales, who continue to hold onto their sizeable number of Bitcoins and hefty returns, Bitcoin and the broader cryptomarket has hit a wall in recent weeks.

The slide in volumes and volatility can be attributed to two main events that have held the cryptomarket to ransom since the summer. The first is the planned rollout of unified rules and regulations for the cryptomarket by the G20, with the second being the SEC’s pending decisions on 9 Bitcoin ETF applications that had in fact been declined in the late summer, only for the decisions to be placed under review.

There may be a difference of opinion on which has had the greatest influence on the broader market and ultimately weighed on volumes and volatility, but when looking at the more mature asset classes, the introduction of institutional money can only truly materialize when there is an appropriate regulatory framework.

China’s inclusion into the MSCI’s Emerging Markets Index is a case in point, where the MSCI held back until there were the appropriate transparency and necessary access to the market.

Can the SEC give the green light for institutional money to begin flooding into Bitcoin and the broader market ahead of a unified set of rules and regulations?

Perhaps the much talked about a slide in volatility through October and the early part of November answers the question.

In the event that the SEC actually approves even one of the 9 Bitcoin ETF applications, the amount of institutional money that will likely actually enter the market, with the existing framework, is unlikely to be close to the sizes that the market has hoped for, not until the G20s rules and regulations at least and that’s been delayed until next summer.

Extensions and postponements have ultimately left sidelined investors on the sidelines and those already holding positions in a holding pattern, the lack of a catalyst creating the millpond effect that is not just evident in Bitcoin, but even with the more volatile cryptocurrencies, such as Ripple’s XRP.

Going back to the end of the 1st quarter, Bitcoin’s volatility in the month of March stood at 4.69, while in October it had fallen to 1.75 and for the current month sits at 0.85.

For Litecoin that tracks the broader market more closely, therefore a fairer comparison when looking at volatility, volatility in March stood at 4.93 before sliding to 2.93 in October and 2.89 for the current month.

Are the days of volatility and high volumes over?

Unlikely, when considering the maturity of the broader market and particularly when considering the anticipated impact of an eventual approval of cryptomarket ETFs and a more rigid regulatory framework to support the introduction of institutional money.

Which comes first remains to be seen, with investors now sitting patiently waiting for the SEC’s post 5th November decision on the 9.