Market Update: Feb 26-March 4th


International News

Welcome to the first full week of March 2018!  If you missed anything in the last week of February you’re in the right place.  Let’s take a look at what crypto world was up to last week before looking ahead to Spring…

Germany declared that cryptocurrency transactions will be deemed tax exempt, and that they think this should be the standard for the entire European Union. Germany had already legalized the use of cryptocurrency, and they appear to be leading the effort in applying blockchain technology to everyday life. With all the issues the European Union has been having recently, whether it be debt or secession, many knowledgeable investors have looked to cryptocurrency as a viable solution, and in some cases a replacement for a tumultuous Euro. By making cryptocurrency transactions tax exempt in Germany, they are opening the flood gates to potential income streams, as all cryptocurrency users in Europe will see a significant advantage to transacting in Germany. While Germany will not receive taxes from this spike in transactions, the country is now a hotbed for startup innovation in blockchain technology. An unregulated cryptocurrency system still lends itself to scams among the less informed but hopefully will decrease leaders in the space set the standard for proper Initial Coin Offering protocol in 2018. We are still young in terms of ICO regulation worldwide and we’ll be interested to see how a crypto-friendly country like Germany addresses the topic.


To the far east! China has said they will further “crackdown” on offshore platforms for cryptocurrency trading and ICO’s. With the effort to centralize this decentralized technology in full force, it is apparent that as regulation efforts continue, there will be an equal effort by the cryptocurrency exchanges to stay one step ahead. It is the nature of decentralized technology founders to defy the constraints of a centralized authority. What the world monetary authorities are trying to figure out is how to act in conjunction with this technology, while not losing their own stake to technological advancements. While these “crackdowns” on fradulent cryptocurrency companies is a positive for the uneducated investor, this methodology is coming at the expense of cryptocurrency companies being subject to relentless fear, uncertainty, and doubt attacks by the media. We are nearing a tipping point between mainstream blockchain technology adoption and the old guard way of worldwide monetary authorities.  There will have to be some concessions of both sides to put us over the edge though.  As long as we have legitimate companies country jumping to dodge unjust regulation, we will not be moving closer to the ultimate goal of mainstream adoption. 2018 remains an important battleground year  between the cryptocurrency markets and legacy equity markets of the world.

US News

A major story that may be overlooked is that Paypal has filed a patent to expedite cryptocurrency payments on their network. Considering that cryptocurrencies do not require a third party to be sent between two users, it is crucial that Paypal does not give any reason for users to conduct transactions outside of their platform. Paypal is saying that payment companies should be able to fully utilize the cheap and efficient nature that blockchain transactions allow, without being restricted to normal payment method constraints. If the most popular sites for purchase and payment allow consumers to benefit from the use of cryptocurrency it will open the flood gates to an exponential increase in practical uses. When talking of mainstream cryptocurrency adoption, this is the path of least resistance to individuals being exposed and becoming comfortable with crypto-payments.


Fortune came out with an article claiming the US government has seized over $1 Billion in cryptocurrency assets from criminals. While the US government has not disclosed any major purchases in the cryptocurrency space, it is worth noting that these cryptocurrencies are held as opposed to being converted back into fiat currency. While they may not have done so because of legal restrictions regarding evidence tampering, it is safe to say that the US government has established a small foothold in the cryptocurrency markets. As governments and monetary institutions jockey for positions in the space, it will be interesting to see just how large the US position grows.


Price Analysis

Three long of months of downtrend in the Bitcoin chart may be nearing an end.  Looking at the BTC/USD chart we see a significant breakout from the descending trading channel last week.  It is important Bitcoin holds the $11,000 level as it approaches the looming resistance walls of $12,000 and $12,500.   If the crypto giant can break through these two resistance levels it will be a quick surge back to the $13,000-$15,000 range of early January 2018! We’ll be watching this chart closely this week as will the rest of the cryptosphere.  One interesting question being posited by crypto traders is that if Bitcoin goes on another mega bull run will the many altcoins suffer or rise with the tide?  It remains to be seen but let’s focus on breaking those $12,000 resistance first !

Looking Ahead

The future is bright for several major cryptocurrency projects.  Major ethereum rival EOS is preparing to launch their mainnet in less than 90 days and storied advertising cryptocurrency project, Tron, has announced they are bumping up their mainnet release from July 1st to May 31st.  If you have any ideas for decentralized applications you are sure to be excited with the release of competitors to Ethereum. Innovation drives competition and competition drives innovation. We’ll be diving into the specifics of these two releases in future articles but if there are other projects you wish to learn more about feel free to message us on social media!



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