Crypto Markets See Little Movement, Bitcoin Continues to Trade Just Below $6,500

Saturday, Oct. 20: Crypto markets are seeing little momentum, with virtually all of the major cryptocurrencies seeing slight growth and losses between a 1-2 percent range, as Coin360 data shows.

coin360

Market visualization by Coin360

Tether (USDT) has mostly settled back in to its characteristic trading pattern. Having briefly lost its U.S. dollar peg last week, the asset has since reclaimed its historical trading range close to a 1:1 ratio to the greenback. Today the stalwart stablecoin has seen an almost 1 percent drop to trade at $0.979.

Bitcoin (BTC) is trading at $6,473 at press time, seeing negligible price change on the day according to CoinMarketCap. Following its short-lived ascent to $6,965 Oct. 17, correlated with Tether’s price tumble, Bitcoin has corrected back to a trading range just a little higher than at the start of its weekly chart.

Earlier this month, Bitcoin achieved a 17-month low volatility rate, recording its highest level of stability since mid-2017, and the trend has continued over the past few days.

Coupled with low volatility, BTC trading volumes remain low; as of press time the figure is around $3.55 billion.

On the week, the top coin has seen a gentle increase of around 3.3 percent: on its monthly chart, growth is just 0.23 percent.

BTC

Bitcoin 7-day price chart. Source: CoinMarketCap

Ethereum (ETH) is seeing similarly slight momentum, up just 0.63 percent to trade around $205, according to CoinMarketCap. Over the past week, the leading altcoin has seen a similar trading pattern to Bitcoin, spiking to $220 Oct. 15 before correcting downwards and then sideways in recent days.

This brings Ethereum to a 3 percent gain on its weekly chart; monthly losses are roughly equal in the opposite direction, at 2.7 percent.

ETH

Ethereum 7-day price chart. Source: CoinMarketCap

Most of the remaining top ten coins on CoinMarketCap are in the green.

The strongest top-ten performer is fourth largest coin Bitcoin Cash (BCH), up 1.4 percent on the day to trade around $447. Anonymity-oriented alt Monero (XMR) is seeing a modest 0.21 percent change on the day to press time.

In the context of the top twenty coins, the market picture is also stable, with virtually all assets seeing minor growth of below the 1-2 percent mark. The exception is Zcash (ZEC), which has relatively “soared” almost 4 percent on the day to trade at $124.86.

The alt dislodged Dogecoin (DOGE) from its spot as twentieth largest coin by market cap earlier this week, and has seeing sustained growth atypical for the wider market.

Native exchange token Binance coin (BNB) is one of the only top twenty coins in the red, but down only 0.56 percent..

Total market capitalization of all cryptocurrencies is at around $209 billion as of press time. Since its intraweek peak at $220.2 billion Oct. 15., the market has tapered downwards and has continued evenly around the $210 billion mark for several days.

Total

7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

A new report from Big Four auditor Ernst and Young has found that among the “top” initial coin offerings (ICOs) that raised capital in 2017, 86 percent of project tokens are trading below their listing price, with 30 percent having lost “substantially all value.” Beyond investment returns, the auditor found that only 29 percent of studied projects had either a working product or prototype – up just 15 percent from at the end of last year.

In other altcoin news, developers at Ethereum – the platform the underpins most ICO tokens – yesterday reached a consensus to delay a planned hard fork of the protocol until January 2019. The fork, dubbed “Constantinople,” was supposed to be activated by the end of Oct.-Nov. this year, but faced a number of hurdles during its testnet trial last weekend.

U.S. Jewelry Store Latest Retailer to Accept Cryptocurrency as Payment

A U.S.-based jewelry store is joining a growing and long list of retailers who are accepting cryptocurrency to pay for goods.


If the crypto industry has been good to you and you’re in the market for something shiny, then you’re in luck. According to a press release, Marks Jewelers is the latest retailer to accept cryptocurrency as a payment. The US-based jewelry store’s wide range of beautiful diamonds and timepieces will most likely have you parting with your crypto in no time at all.

Reaching More Customers Around the Globe

By collaborating with Shopping Cart Elite, an e-commerce platform, Marks Jewelers will be able to accept Bitcoin Diamond (BCD), Bitcoin Cash (BCH), Bitcoin (BTC), Bitcoin Gold (BTG), Dash, Ethereum (ETH), Litecoin (LTC) and Zcoin (XZC).

The Director of Marketing for the jewelers, Joshua Rubin, spoke about his excitement for this new venture and how it will impact the company:

We’re very excited to begin accepting cryptocurrency payments from our customers around the world. This will allow us to make our fine jewelry available to the global market while paying lower fees and avoiding chargebacks. Marks has long been known for our meticulous craftsmanship and curated selection, and we are thrilled to open our store to the world.

While convenience and customer-base expansion are obvious benefits for the company, their clients may also experience discounted rates. This is because the savings that Marks Jewelers will enjoy, such as lack of currency conversion fees and reduced transaction costs, could translate into more affordable product prices for their customers.

Cryptocurrency Acceptance Continues to Grow

While perhaps the latest, Marks Jewelers is by no means that only retailer that is accepting virtual currencies as payment. Overstock saw the crypto light back in 2014 when they began accepting Bitcoin and its brethren. Live Bitcoin News also reported on a Texas-based luxury vehicle dealership that began accepting crypto as well as another U.S.-based car dealership that recently sold a car completely paid for in Dash.

However, if you really want to up the ante and buy your own yacht or even the ever-popular Bitcoin status symbol, a Lambo, then sites like the Dadiani Syndicate were made for you. With these platforms, bridging the divide between virtual wealth and tangible luxury assets is getting easier and easier.

So, the moral of the story is that you don’t have to let your lack of fiat stop you from popping the big question or buying that priceless work of art. Just find a platform that can accept your crypto and treat yo’ self.

What would be the first luxury item you’d buy if you had some crypto to spare? Let us know in the comments below!


Images courtesy of Pixabay and Shutterstock.

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Expect More Crypto Hedge Funds To Close in 2018… But Not For Why You Think.

In a recent tweet thread, Anthony “Pomp” Pompliano, co-founder of Multicoin Capital, outlines why many of crypto hedge funds might be closing their doors in 2018.


Most people would expect that the bear market and the prices would be the number one reason why most hedge funds are closing up shop.

While this is certainly a factor, Pomp believes that it has to do more with the fee structures that the funds set-up in 2017. In 2017, 198 hedge funds launched and in 2018, it’s projected that 220 hedge funds will open.

2017 was a great year to start a crypto hedge fund, especially the earlier part as the returns were massive and investors made great returns.

2018, on the other hand, has seen a significant downturn in many of the cryptocurrencies like Bitcoin, Ethereum, Ripple, Litecoin and Stellar, Zcash and DASH. Many of these coins make up a strong percentage of most of the crypto hedge funds out there.

While price has a significant reason for the closing of these hedge funds, it’s actually due to the fee structures many of these funds set-up in 2017, which will actually cause the closings of these funds.

Most hedge funds have a fee on what is known as Assets Under Management or AUM.

A 2% management fee is pretty standard across all industries for hedge funds. The real money for owners of funds is what is known as a “performance” fee or an “incentive” fee which can be as high as 20% of profits. These bonus fees are calculated at the end of the year. In 2017, the numbers indicated stellar returns.

As an example, if a fund had $10 million assets under management and grew it to $20 million, they would take 20% of the $10 million in profits and pocket a $2 million incentive fee.

According to Pompliano, most hedge funds have a high water mark clause in their contracts that basically states, “The performance bonus is only good if the fund breaks the previous yearly high.’

This means that for the same fund that doubled in value of 2017 at $20 million, would need to be above $20 million by the end of December for 2018.

Due to the 70-90% corrections from all-time highs in 2017, a majority of crypto funds will most likely not make any performance fee this year.

This means they have three options for the rest of the 2018 fiscal year.

They can:

  1. Raise New Capital
  2. Ride the market out and hope 2018 is better.
  3. Close the fund

Raising new capital is a hope for many funds, as the new money won’t be ear marked with the ‘highwater’ clause. In fact, we are seeing a lot of funds trying to raise more money for the 2018 year to get in on the bear market prices.

Kyle Semani of Multicoin Capital has stated, “New capital has slowed, even for a higher-profile fund like ours.” This means that most of these smaller, lower profile funds are feeling the weight of this bear market as capital is drying up for the crypto markets.

As for riding out the market, I’m guessing that, like many of our readers, they are hoping for a strong 4th quarter so that they can reach the benchmark set in 2017. Based on conservative figures, most funds need to 4X from their current positions to get back to their high water marks.

We’ve seen this in other industries. If we don’t get the strong fourth quarter, then we may see hedge funds start to close their doors to start new ones, join other firms, or just retire from their 2017 profits. George Saber from Coin Observatory, a crypto hedge fund advisory company, had the following to say:

We have hedge funds from around the world that use our Market Intelligence Interface to keep their investors money safe. You have to adapt your strategy to the market that you’re in. 2017 was a buy and hold bull market. 2018 has been a choppy bear market. We recommend our clients use complex hedging strategies rather than just hodling and praying. It’s all about exposure and risk management.

A few lessons to take away: the best hedge funds of 2018 were most likely shorting the markets all year or at least hedging their positions by shorting the futures market.

What are your thoughts on the current state of crypto hedge funds?


Images courtesy of CryptoFundResearch.com, Shutterstock.