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Crypto Market Forecast: January 20th

#crypto #bitcoin

It was a volatile but positive week in the crypto markets. Most large-cap assets ended the week with strong double-digit gains despite a sharp, sudden price drop on Sunday. Bitcoin ended the week up ~7% in USD terms after a ~3% pullback on Sunday following a brief period above the important US$9000 price level.

The number 2 and 3 crypto assets on Brave New Coin’s market cap table, Ethereum, and XRP, ended the week up 14% and 9%, respectively, but experienced similar end of the week slumps after BTC pulled back. Even so, the overall crypto market cap rose an impressive ~9% across the week.

It was a particularly capricious week in the altcoin markets with some assets experiencing single day triple-digit gains reminiscent of the 2017 bull run. The week’s biggest large-cap winner was the Bitcoin SV token which ended the week up ~66%. It rose over 160% in USD between Monday and Wednesday and briefly traded above US$400 on Wednesday.

It currently trades at ~US$275 with many traders choosing to take profit after the extreme midweek gains. A possible trigger for Bitcoin SV’s surge was the highly speculative news that Bitcoin SV’s controversial leader Craig Wright would submit a list of public keys for the $8.9 billion worth of Bitcoin supposedly held with the Tulip Trust. Wright’s argument is that the Tulip Trust proves he is Bitcoin’s pseudonymous original creator, Satoshi Nakamoto. Despite confirmation that the list of public keys has not been legally acknowledged, received, or verified, Bitcoin SV ended the week with most of its early week gains retained.

Over the last month, the Crypto Fear & Greed index has slowly switched from ‘fear’ to ‘neutral’. This implies that the underlying macro sentiment within the crypto markets is growing more bullish. Other large-cap alts with strong communities such as Zcash (ZEC), Dash (DASH) and Ethereum Classic (ETC) achieved gains of 40% across the week. Some long term crypto bulls may be considering entering the markets given that there now appears to be strong macro market momentum.

This week in crypto events

22nd January- Golem (GNT) Reddit AMA

Popular ERC20 and ICO project, Golem, has a community AMA (ask me anything) this week. One question could be the jurisdictional approach of Golem given recent SEC statements regarding the legality of digital token issuance models. Useful sentiment may be gleaned from the AMA, potentially affecting the short-term buy/sell action of GNT. The price of GNT rose ~17% last week.

21st-24th January- Davos 2020

The World Economic Forum’s flagship Davos conference reconvenes in Switzerland this week. The mega event includes seven diverse themes and 774 different speakers. The event has a crypto flavor with topics such as digitization and decentralization expected to be important themes for the conference. Featured panels at Davos 2020 include ‘From token assets to a token economy’ which features Jeremy Allaire, the CEO of digital currency giant Circle and Neha Narula, director of the digital currency initiative at MIT media labs.

Despite the end of the week price drop, assets on Brave New Coin’s top 10 market cap table grew strongly last week. The strong gains posted by Bitcoin-SV (BSV) ~71% and Stellar (XLM) ~23% stand out as alpha. Just outside of the top 10, IOTA(MIOTA) rose ~28% following a positive report from financial research leader Fundstrat.

Bitcoin’s excellent week was marred by a pullback just before its weekly close that led some market analysts to suggest BTC’s long term weekly chart remains in a downtrend, but may be prepping for a larger multi-week price breakout soon. Weekly closes above $9000 and $9500 may be needed before bulls renter and a breakout is confirmed.



Aditya Das, Khareem Sudlow