Capital Trading Group Blog

4 12 2018 Crypto Currency

04-12-2018

Big news this week Bloomberg reporting that NY based Soros Fund management has received internal approval to trade virtual coins. We know the capital gains are too much for even the great Soros to pass up. Why not right? Money is money, digital, metal, etc…One thing we are certain that this announcement is no leak rather we know bigwigs always talk their book after they have the position, so the next few weeks price action will be very interesting.
Also out this week is CCN reports that another elite titan family, the Rockefeller family and their venture capital arm are delving into the cryptocurrency space. In a joinventure with Venrock and Coinfund, the firm plans on helping entrepreuneurs with blockchain based businesses. Word on the street is ther Rocks have nearly $1Trn in net worth…a far cry from grandpa Rock “The Snakeoil Salesman”
Will Bitcoin bounce, technically we are near the lows and from our trading lens, Bitcoin is bullish as long as new lows aren’t made and that is if you are a short term player. Longer term, we will consistently be a buyer as we know fiat is not the answer and digital money is the future and Bitcoin continues to be the winner.
 
Other news out this week was that the WSJ reported that Coinbase has contacted US regulators about registering as a liscensed brokerage and electronic trading venue. Seeing the approval of the SEC in order to offer digital tokens. Obviously this is about increasing revenues and considering the backing and the oversight as well as the privacy deal that Coinbase no doubt cut with regulators means most likely approval is coming down the road.
 
In another story word out of Monero core developers they are seeking upgrades, we’ve read 2 rationales for the reason, that is to increase minimum ring size to 7 from 6 and to drop a spanner in the
works of ASIC miners, whom are most likely gaining a larger mining foothold. They aren’t calling it a Fork persay but it is clearly intended to block ASIC rigs and keep the autonmy of its network. Monero has stated that an upgrade is in order and NO NEW COIN will be created. Will see how this all goes down, should be interesting. Ethreum is also at risk from these new ASIC miners out of Bitmain, which is why we fully understand the quest for a consensus proof of work algorithms which are basically a one miner one vote protocol where as proof of stake is based upon coins earning the majority of rewards.
 
An attack on a proof of work system is possible given the power of ASIC mining hardware and Bitmain the player knows it full well. Where as the flip side in the proof of stake protocol it would be quite costly based upon the price to acquire coins and thus even if you do, we suppose you just devalued yourself. For those that don’t know what ASIC is it stands for Application Specific Integrated Circuit. Once again this battle goes to show you a lot of things are being tested as the ecosystem grows, but it is in these tests that upgrades and qualified adjustments are made across the entire system. The differnce and one thing that I think sets a decentralized open source system apart is the fact that ideas are openly and almost instantaneously enacted. With a centralized control system, there are too many cogs in the wheel, too many boxes to check to get approval, that is why we are so bullish on Blockchain and Cryptocurrencies.
 
In other Crypto news, Bithumb SKorea’s largest exchange saw massive profits in 2017. Its parent company BTCKorea is public and in an earnings release reported Bithumbs 171x increase in revenue. Considering the firm no doubt keeps some profits based in crypto, it will be interesting to see their earnings for 2018 if the price doesn’t recover.
CCN also reports this week that, Gemini adds block trading to their exchange which will allow for single large order or transactions and will be posted with a 10 minute delay. Some traders will say this ruins transparency, but we say, it’s a market function you will have to live with. The fact remains, he who holds the most money controls the power, financial or crypto markets are no exception.
 
Ok so let’s get to this weeks settlements. We are thinking long and hard for adding EOS, we spoke of EOS a while back and many call it the Ethereum killer. We will continue to monitor it and most likely we will advance to adding coverage and even add it to our CC Index. Obviously this of course is an ongoing process and coin volatility is
a concern, however the dynamics of Cryptocurrencies and their inherent volatility are something we are well accustomed to. Ok without further adieu here are the settles for Friday April 6th 2018.
As you can see the losses continue across the board, albeit at a slower pace than the prior weeks. Bitcoin Cash and NEO are the big losers down 12.7% and 11.2% respectively. Bitcoin down marginally with a 4.6% loss and near massive $6k support. Short term traders will most likely be buyer vs that level and quick to bail on any attempts below. Longer term you know where we stand. As for our CryptoCorner Index, it settled the week at $2537.28 down $129.31 or 4.8%:
As for the top wallets only the largest wallet sold on the week dropping 16458 BTC but continuing to be valued over $1.1 Billion dollars. The next 3 wallets were unchanged and the 5th spot added 5901 BTC on the week, pushing the 100k BTC total.
 
We will continue to monitor the top wallets as to any indication of big moves and correlations to market movements. We aren’t going to post to many technical charts but we will put up Bitcoin and EOS as of today 4 11 18.
 
As far as EOS, its put in a nice base and we feel $7.95 is a big level nearby:
We hope you enjoyed this week’s CryptoCorner, we look forward to continuing the ever expanding blockchain and cryptocurrency world. We strive to not waste your time and rather point out things that we deem important in the continually evolving space and we hope that point stands out. We understand the plethora of updates that exist and we are glad you have chosen to stick with us.
 
Finally, we will decidedly end our notes with our reaffirmation of the growing need for alternative strategies. We would like to think that our alternative view on markets is consistent with our preference for alternative risk and alpha driven strategies. Alternatives offer the investor a unique opportunity at non correlated returns and overall risk diversification. We believe combining traditional strategies with an alternative solution gives an investor a well-rounded approach to managing their long term portfolio. With the growing concentration of risk involved in passive index funds, with newly created artificial intelligence led investing and overall market illiquidity in times of market stress, alternatives can offset some of these risks.
 
It is our goal to keep you abreast of all the growing market risks as well as keep you aligned with potential alternative strategies to combat such risks. We hope you stay the course with us, ask more questions and become accustomed to looking at the markets from the same scope we do. Feel free to point out any inconsistencies, any questions that relate to the topics we talk about or even suggest certain markets that you may want more color upon.
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Capital Trading Group, LLLP ("CTG") is an investment firm that believes safety and trust are the two most sought after attributes among investors and money managers alike. For over 30 years we have built our business and reputation in efforts to mitigate risk through diversification. We forge long-term relationships with both investors and money managers otherwise known as Commodity Trading Advisors (CTAs).
 
We are a firm with an important distinction: It is our belief that building strong relationships require more than offering a well-rounded set of investment vehicles; a first-hand understanding of the instruments and the organization behind those instruments is needed as well.
 
Futures trading is speculative and involves the potential loss of investment. Past results are not necessarily indicative of future results. Futures trading is not suitable for all investors.
 
Nell Sloane, Capital Trading Group, LLLP is not affiliated with nor do they endorse, sponsor, or recommend any product or service advertised herein, unless otherwise specifically noted.
 
This newsletter is published by Capital Trading Group, LLLP and Nell Sloane is the editor of this publication. The information contained herein was taken from financial information sources deemed to be reliable and accurate at the time it was published, but changes in the marketplace may cause this information to become out dated and obsolete. It should be noted that Capital Trading Group, LLLP nor Nell Sloane has verified the completeness of the information contained herein. Statements of opinion and recommendations, will be introduced as such, and generally reflect the judgment and opinions of Nell Sloane, these opinions may change at any time without written notice, and Capital Trading Group, LLLP assumes no duty or responsibility to update you regarding any changes. Market opinions contained herein are intended as general observations and are not intended as specific investment advice. Any references to products offered by Capital Trading Group, LLLP are not a solicitation for any investment. Readers are urged to contact your account representative for more information about the unique risks associated with futures trading and we encourage you to review all disclosures before making any decision to invest. This electronic newsletter does not constitute an offer of sales of any securities. Nell Sloane, Capital Trading Group, LLLP and their officers, directors, and/or employees may or may not have investments in markets or programs mentioned herein.

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