MaiCoin Digital Asset Weekly, July 12 2019

MaiCoin Digital Asset Weekly, July 12


Digital Assets ended the week little changed after giving up a mid week high of +14%. Volumes fell to US$77B, down about -6% from the previous week. Breadth was negative with only 47 of the top 200 coins and tokens ending the week higher. Modest gains in BTC +4% were offset by declines elsewhere. Smaller coins and tokens were the hardest hit with utility tokens -14% and IEOs -13% amongst the week’s worst performers.

News sentiment continued to weaken this week with only 64% of BTC articles positive and 51% of Alt Coin articles positive. Headlines this continued to be regulatory focused with Libra again garnering a lot of criticism from global regulators and policy makers. Top stories this week included: 1. Trump tweeting criticism about Digital Assets and Libra, 2. Singapore’s stock exchange backing an ETH STO platform, 3. Reports that the PBoC may accelerate digital currency plans, 4. Regulators in the US, India and Europe issuing warnings on Libra, 5. Metropolitan Commercial Bank looking to close Tether bank accounts and 6. A $35M hack at Japan’s BitPoint.

Looking into next week, we expect consolidation to continue with down side support remaining around the $10,500 range. Given the recent touch on a Mayer Multiple of 2.5 a deeper correction to the $8,000 or $9,000 level is also possible (but not likely). The major theme of this week was cointued BTC dominance which grew to a 2 year high of > 65% this week. ETH has been one of the most noteworthy victims of BTC outperformance, falling below the 0.025 ETH:BTC level for the first time since 1Q17. This break does not look good from a charting perspective. However, given that ETH and BTC are the only digital assets that the SEC has guided are decentralized enough to not be considered securities, it is likely an eventual target of institutional inflows. The market will likely need to see more clarity on ETH 2.0 scaling plans, though, before it can begin to close the gap with BTC.


MaiCoin Media

  • MaiCoin Podcast #2 — Justin Sun, founder of TRON and CEO of BitTorrent
    – Justin joins us at MaiCoin HQ to talk about his background, his plan of attack for the Buffett lunch, the future of BTT, Libra vs WeChat Pay, Chinese regulatory attitudes and much more.


Chart 1. Weekly price vs volume

Chart 2. Weekly price change

Chart 3. Major thematics

Chart 4. Monthly average daily volume as % of historic high

Chart 5. MTD average daily volume

Chart 6. Price 50 day z score
– Declines in XRP, EOS, BCH, BNB and ETC starting to get to the bottom end of their historic range