Market Analysis

The attached chart is the global market cap for the last month. You can see the double bottom, mentioned previously, with the W shape in the chart.

What the chart also shows is that the market is pretty much being dictated by ETH behaviour, I've attached the ETH chart to show this. You can see a similar pattern.

Why does this happen? Honestly, I don't know, but my gut feeling is this:

  1. Most crypto investors have been caught up in the ETH buzz and hold a position. As ETH is essentially 1/4 of the entire market cap for Crypto, its volatile price movements are rippling across other coins.
  2. The market is quite immature, one panic leads to another panic.
  3. Automated bots are taking signals from the entire market for positions.

So what to do about this? This is my approach:

  1. I have moved investments into more stable coins. Before the last crash, 1/3 of my portfolio was ETH, I sold off 66% of ETH and split that between DASH, Bitcoin and FIAT withdrawal. The Fiat withdrawal was profit taking, Bitcoin is stabilising with Segwit looking likely to activate and the Masternode structure of DASH makes it a more stable investment.
  2. Don't panic, 30% market movements are becoming the norm. Nothing has fundamentally changed in the market, crypto is still a solid investment due to the business case for Blockchain. Are we in a bubble, almost certainly, will it pop, maybe one day, as ever though. The most important question, if you are investing long term (multiple years), do you believe the entire market cap will never reach a new all-time high? Of course not. The market cap for Gold alone is 80* bigger than all crypto. Bill Gates net worth is more than the entire market cap for Bitcoin.

New things I am going to be doing once the market settles:

  1. Portfolio evaluation, review which investments are working and which I am losing faith in and move around.
  2. Identify new opportunities, I am currently looking at QRL and Blocknet.

Any questions then please shout.