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Bitcoin Price Jumps Past $7,600

By | Coinscious Lab, Data Analytics, Market Report | No Comments
Biggest
30d % Gain

Bitcoin (BTC) 
+39.46%

Biggest
30d % Loss

Zilliqa (ZIL) 
-18.01%

Overview

Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports plan to focus on metrics derived from a 30-day rolling window of data, this time from April 13, 2019 to May 12, 2019.

Our universe of analysis includes 50 of some of the most widely used and traded cryptocurrencies. Please see Appendix A for the complete list.

Analysis

The performance of major cryptocurrencies over the past month was overall not very good, with only 18 out of the 50 cryptocurrencies that we examined up from their values 30 days ago. Bitcoin (BTC), the largest cryptocurrency by market capitalization, was the best performer over the past month and bitcoin price is $7600 at the time of writing.

Outside of cryptocurrencies, the S&P 500 is down 0.83% from 30 days ago and closed last Friday at $2881.40.

Figure 1 presents the risk versus return trade-off over the past 30 days by plotting mean daily return versus historical daily volatility for various cryptocurrencies.

Figure 1. Plot of mean daily return against historical daily volatility for individual cryptocurrencies from April 13, 2019 to May 12, 2019. Higher returns at a given level of risk, measured through historical daily volatility, indicates a better investment. Volatility, on the x-axis, is presented in log scale.

The best performer overall over the past month was Bitcoin (BTC), with a total return of 39.46%.

The second and third best performing cryptocurrencies were Bitcoin Gold (BTG) and Link (LINK), with total returns of 36.42% and 35.55% respectively.

Zilliqa (ZIL) was the worst performing cryptocurrency, with total losses of 18.01%. Zilliqa is a public blockchain platform designed to handle high transaction rates that scale linearly with network size.

The second and third worst performing cryptocurrencies were Siacoin (SC) and Aeternity (AE) with total losses of 17.26% and 14.29% respectively.

Figure 2a. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrencies with the highest total returns from April 13, 2019 to May 12, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate.

Figure 2b. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for cryptocurrencies with the lowest total returns from April 13, 2019 to May 12, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate.

Figure 3 plots daily candlesticks of the Bitcoin price and Ether price, the two largest cryptocurrencies by market capitalization. In addition, the following commonly used technical analysis indicators are shown:

  • Simple moving averages (SMA) with periods of 50, 100, and 200 days
  • Relative strength index (RSI) with a period of 14 days
  • Moving average convergence divergence (MACD) with a fast EMA period of 12 days, slow EMA period of 26 days, and a signal period of 9 days

The indicators for all three cryptocurrencies share many common features.

First, the 50-day simple moving average continues to stay above the 100-day moving average, a continuation of a long-term bullish signal.

Furthermore, for all three cryptocurrencies, the MACD line has crossed below the MACD signal line approximately a week ago. This is known as a bullish crossover and could be interpreted as a bullish signal.

The RSI values of all Ether and XRP are neither oversold or overbought, although both are trending upward and the value for Ether is almost crossing the 70 overbought threshold. Bitcoin’s RSI value is above 70 and indicates that it is overbought. Prices are typically expected to dip after being overbought, but momentum oscillators can also become remain overbought before actually reaching a peak during a strong trend.

Figure 3a. Bitcoin price (BTC) in USD at Bitstamp from April 13, 2019 to May 12, 2019.

Figure 3b. Price of Ether (ETH) in USD at Bitstamp from April 13, 2019 to May 12, 2019.

Figure 3c. Price of XRP (XRP) in USD at Bitstamp from April 13, 2019 to May 12, 2019.

APPENDIX A: Cryptocurrencies

Below is a complete list of all cryptocurrencies examined in this market report. In addition, we present the mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrency from April 13, 2019 to May 12, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate. Bitcoin price

APPENDIX B: Methodology

The daily price data of cryptocurrencies in USD at 4:00 PM EST from April 13, 2019 to May 12, 2019 was used for our calculations.

The prices are the volume weighted average price of the cryptocurrency in USD at 4:00 PM EST each day across all exchanges where Coinscious has data. The only exception is Siacoin (SC), where we used the Yahoo Finance price instead due to data quality issues at the time of writing.

Daily closing price data of the S&P 500 index was obtained from Yahoo Finance. The latest 10 year US Treasury bill rate from YCharts was used for calculations involving a risk-free rate.In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX C: Terminology

  • Volatility: A measure of the dispersion in the trading price of an instrument over a certain period of time, defined as the standard deviation of an instrument’s returns.
  • Drawdown: A measure of the decline of the trading price of an instrument or investment since the previous peak during a certain period of time. Less negative, less frequent, and shorter drawdowns are more desirable.
  • Maximum drawdown: The maximum peak to trough decline of the trading price of an instrument or investment over a certain period of time. Less negative maximum drawdowns are more desirable.
  • Sharpe ratio: A risk adjusted measure of return that describes the reward per unit of risk. The reward is the average excess returns of an investment against a benchmark or risk-free rate of return, and the risk is the standard deviation of the excess returns. A higher Sharpe ratio is better. Ex-ante Sharpe ratio is calculated with expected returns whereas ex-post Sharpe ratio is calculated with realized historical returns.
  • Correlation: A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report. Bitcoin price.

Bitcoin Prices Steadily Increase; Now Holding at $5,400

By | Coinscious Lab, Data Analytics, Market Report | No Comments
Biggest
30d % Gain

Bitcoin Cash
+55.64%

Biggest
30d % Loss

Maker (MKR)
-23.58%

Overview

Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports plan to focus on metrics derived from a 30-day rolling window of data, this time from March 30, 2019 to April 28, 2019.

Our universe of analysis includes 50 of some of the most widely used and traded cryptocurrencies. Please see Appendix A for the complete list.

Analysis

The performance of major cryptocurrencies over the past month has been good, with 31 out of the 50 cryptocurrencies that we examined up from their values 30 days ago. Bitcoin (BTC), the largest cryptocurrency by market capitalization, is trading around $5,400. Prices were as high as $5,500 earlier this week. Bitcoin broke above the $4,200 overhead resistance level on April 1 with a sharp jump to $5,000 and has been steadily increasing in value since then.

Outside of cryptocurrencies, the S&P 500 is up 3.72% from 30 days ago and closed last Friday at $2,939.88.

Figure 1 presents the risk versus return trade-off over the past 30 days by plotting mean daily return versus historical daily volatility for various cryptocurrencies.

Figure 1. Plot of mean daily return against historical daily volatility for individual cryptocurrencies from March 30, 2019 to April 28, 2019. Higher returns at a given level of risk, measured through historical daily volatility, indicates a better investment.

The best performer overall over the past month was Bitcoin Cash (BCH), with a total return of 55.64%. Bitcoin Cash is an altcoin created after a hardfork to Bitcoin in August 2017. Bitcoin Cash has larger blocks than Bitcoin, and hence can theoretically process more transactions per second.

The second and third best performing cryptocurrencies were Basic Attention Token (BAT) and Binance Coin (BNB), with total returns of 80.40% and 37.59% respectively.

Maker (MKR) was the worst performing cryptocurrency, with total losses of 23.58%. Maker is a governance token as well as a utility token for the MakerDAO smart contract platform, which backs and stabilizes the value of Dai (DAI), a soft-pegged stablecoin.

The second and third worst performing cryptocurrencies were Waves (Waves) and Steem (STEEM) with total losses of 23.21% and 19.92% respectively.

Figure 2a. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrencies with the highest total returns from March 30, 2019 to April 28, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate.

Figure 2b. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for cryptocurrencies with the lowest total returns from March 30, 2019 to April 28, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate.

Figure 3 plots daily candlesticks of the prices of Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market capitalization, as well as the top performer of the past month, Bitcoin Cash (BCH). In addition, the following commonly used technical analysis indicators are shown:

  • Simple moving averages (SMA) with periods of 50, 100, and 200 days
  • Relative strength index (RSI) with a period of 14 days
  • Moving average convergence divergence (MACD) with a fast EMA period of 12 days, slow EMA period of 26 days, and a signal period of 9 days

The indicators for all three cryptocurrencies share many common features.

First, the 50-day simple moving average continues to stay above the 100-day moving average, a continuation of a long-term bullish signal.

However, for all three cryptocurrencies, the MACD line has crossed below the MACD signal line. This is known as a bearish crossover and could be interpreted as a bearish signal.

Finally, The RSI values of all three cryptocurrencies were in overbought territory above 70 but have since returned to below 70. Prices are typically expected to dip after being overbought, but momentum oscillators can also become oversold multiple times or remain oversold before actually reaching a bottom during a strong uptrend.

Figure 3a. Price of Bitcoin (BTC) in USD at Bitstamp from March 30, 2019 to April 28, 2019.

Figure 3b. Price of Ether (ETH) in USD at Bitstamp from March 30, 2019 to April 28, 2019.

Figure 3c. Price of Bitcoin Cash (BCH) in USD at Bitstamp from March 30, 2019 to April 28, 2019.

APPENDIX A: Cryptocurrencies

Below is a complete list of all cryptocurrencies examined in this market report. In addition, we present the mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrency from March 30, 2019 to April 28, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate

APPENDIX B: Methodology

The daily price data of cryptocurrencies in USD at 4:00 PM EST from March 30, 2019 to April 28, 2019 was used for our calculations.

The prices are the volume weighted average price of the cryptocurrency in USD at 4:00 PM EST each day across all exchanges where Coinscious has data. The only exception is Siacoin (SC), where we used the Yahoo Finance price instead due to data quality issues at the time of writing.

Daily closing price data of the S&P 500 index was obtained from Yahoo Finance. The latest 10 year US Treasury bill rate from YCharts was used for calculations involving a risk-free rate.

In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX C: Terminology

  • Volatility: A measure of the dispersion in the trading price of an instrument over a certain period of time, defined as the standard deviation of an instrument’s returns.
  • Drawdown: A measure of the decline of the trading price of an instrument or investment since the previous peak during a certain period of time. Less negative, less frequent, and shorter drawdowns are more desirable.
  • Maximum drawdown: The maximum peak to trough decline of the trading price of an instrument or investment over a certain period of time. Less negative maximum drawdowns are more desirable.
  • Sharpe ratio: A risk adjusted measure of return that describes the reward per unit of risk. The reward is the average excess returns of an investment against a benchmark or risk-free rate of return, and the risk is the standard deviation of the excess returns. A higher Sharpe ratio is better. Ex-ante Sharpe ratio is calculated with expected returns whereas ex-post Sharpe ratio is calculated with realized historical returns.
  • Correlation: A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

BTC Surges In Last 2 Weeks To $5,105; Now Holding At $5,000

By | Coinscious Lab, Data Analytics, Market Report | No Comments
Biggest
30d % Gain

Tezos (XTZ) 
+110.60%

Biggest
30d % Loss

Nano (NANO) 
-53.49%

Overview

Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports plan to focus on metrics derived from a 30-day rolling window of data, this time from March 16, 2019 to April 14, 2019.

Our universe of analysis includes 50 of some of the most widely used and traded cryptocurrencies. Please see Appendix A for the complete list.

Analysis

The performance of major cryptocurrencies over the past month has been good, with 41 out of the 50 cryptocurrencies that we examined up from their values 30 days ago. Bitcoin (BTC), the largest cryptocurrency by market capitalization, finally breaks above the $4,200 overhead resistance level on April 1; BTC surges to $5105. Various other cryptocurrencies, including second and third largest cryptocurrencies ether (ETH) and XRP (XRP) also experienced large upwards movements on the same day.

Outside of cryptocurrencies, the S&P 500 is up 3.01% from 30 days ago and closed last Friday at $2907.41.

Figure 1 presents the risk versus return trade-off over the past 30 days by plotting mean daily return versus historical daily volatility for various cryptocurrencies

Figure 1. Plot of mean daily return against historical daily volatility for individual cryptocurrencies from March 16, 2019 to April 14, 2019 Higher returns at a given level of risk, measured through historical daily volatility, indicates a better investment.

The best performer overall over the past month was Tezos (XTZ), with a total return of 110.60%. Tezos is a self-amending proof-of-work dApp platform that removes the need to hard fork when implementing protocol amendments.

The second and third best performing cryptocurrencies were Bitcoin Cash (BCH) and IOST (IOST), with total returns of 80.40% and 71.34% respectively.

Nano (NANO) was the worst performing cryptocurrency, with total losses of 53.49%. Nano is a low-latency payment platform designed for peer-to-peer transactions. The second and third worst performing cryptocurrencies were Maker (MKR) and Steem (STEEM) with total losses of 11.49% and 11.42% respectively.

Figure 2a. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrencies with the highest total returns from March 16, 2019 to April 18, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate.

Figure 2b. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for cryptocurrencies with the lowest total returns from March 16, 2019 to April 18, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate

Figure 3 plots daily candlesticks of the prices of Bitcoin ( BTC ) and Ether (ETH), the two largest cryptocurrencies by market capitalization, as well as the top performer of the past month, Tezos (XTZ). In addition, the following commonly used technical analysis indicators are shown:

  • Simple moving averages (SMA) with periods of 50, 100, and 200 days
  • Relative strength index (RSI) with a period of 14 days
  • Moving average convergence divergence (MACD) with a fast EMA period of 12 days, slow EMA period of 26 days, and a signal period of 9 days

Figure 3a. Price of Bitcoin (BTC) in USD at Bitstamp from March 16, 2019 to April 14, 2019.

Figure 3b. Price of Ether (ETH) in USD at Bitstamp from March 16, 2019 to April 14, 2019.

Figure 3c. Price of Tezos (XTZ) in USD at Bitfinex from March 16, 2019 to April 14, 2019.

APPENDIX A: Cryptocurrencies

Below is a complete list of all cryptocurrencies examined in this market report. In addition, we present the mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrency from March 16, 2019 to April 18, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate.

APPENDIX B: Methodology

The daily price data of cryptocurrencies in USD at 4:00 PM EST from March 16, 2019 to April 14, 2019 was used for our calculations.

The prices are the volume weighted average price of the cryptocurrency in USD at 4:00 PM EST each day across all exchanges where Coinscious has data. The only exception is Siacoin (SC), where we used the Yahoo Finance price instead due to data quality issues at the time of writing.

Daily closing price data of the S&P 500 index was obtained from from Yahoo Finance. The latest 10 year US Treasury bill rate from YCharts was used for calculations involving a risk-free rate.

In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX C: Terminology

  • Volatility: A measure of the dispersion in the trading price of an instrument over a certain period of time, defined as the standard deviation of an instrument’s returns.
  • Drawdown: A measure of the decline of the trading price of an instrument or investment since the previous peak during a certain period of time. Less negative, less frequent, and shorter drawdowns are more desirable.
  • Maximum drawdown: The maximum peak to trough decline of the trading price of an instrument or investment over a certain period of time. Less negative maximum drawdowns are more desirable.
  • Sharpe ratio: A risk adjusted measure of return that describes the reward per unit of risk. The reward is the average excess returns of an investment against a benchmark or risk-free rate of return, and the risk is the standard deviation of the excess returns. A higher Sharpe ratio is better. Ex-ante Sharpe ratio is calculated with expected returns whereas ex-post Sharpe ratio is calculated with realized historical returns.
  • Correlation: A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

Ready, Set, Crypto

By | News | No Comments

⚖ Mt. Gox Close to Settling Creditors’ Accounts

FRIDAY, MARCH 22, 2019

Appointed trustee, Nobuaki Kobayashi, of the now defunct cryptocurrency exchange, Mt. Gox, issued a statement advising that those affected by the crash may see a decision very soon on their reimbursement plan. The expected settlement will be available in cryptocurrency or cash. Kobayashi has approved claims for 802,521 BTC (worth $3,233,256,500), 792,296 BCH ($124,953,000), $38,165,664 in USD and other fiat currencies as stipulated in this document.

SOURCE: CRYPTOVEST


✂  BlockFi Cuts Interest Rates Paid to 2% For Its Large Accounts

FRIDAY, MARCH 22, 2019

A few weeks after launching, BlockFi, the cryptocurrency lending startup, has just changed the terms of their interest-bearing deposit account. The company stated in their official blog post that starting April 1, 2019 any accounts with more than 25 BTC or 500 ETH, they will only pay 2% on the amount deposited instead of the originally advertised 6%. Zac Prince, CEO and founder, advised the change is due an unexpected and overwhelmingly large demand from institution clients to deposit more than one million dollars worth of cryptocurrency. BlockFi raised $25 million in the last two weeks alone.

SOURCE: COINDESK


?Bayer Crop Science Partners With ConsenSys’ BlockApps

FRIDAY, MARCH 22, 2019

Pharmaceutical giant, Bayer, and its German-based agricultural division, Bayer CropScience, have teamed up with startup BlockApps, backed by ConsenSys. The partnership was said to have begun early 2018 and they’ve been working on a number of blockchain initiatives to improve operation and the industry. Bayer CropScience was formerly known as Monsanto, the highly controversial agricultural company, before its acquisition.

SOURCE: COINTELEGRAPH


⚡ Huobi Global & OKEx Supports Tron-based USDT

THURSDAY, MARCH 21, 2019

Major cryptocurrency exchanges, Huobi Global and OKEx, have separately announced that they will be supporting the TRC20-based USDT stablecoin, USDT-TRON,launched by TRON and Tether. The new token will be operable with all Tron-based protocols and decentralized applications, improving liquidity in the ecosystem.

SOURCE: COINTELEGRAPH


? Square Hiring Crypto Engineers

THURSDAY, MARCH 21, 2019

CEO of Twitter and Square, Jack Dorsey, announced Square Crypto is seeking to hire three to four cryptocurrency engineers and one designer to build its upcoming crypto ecosystem. Dorsey has become a strong public proponent of bitcoin and cryptocurrency in the recent months. This initiative brings further optimism to the cryptocurrency community and the blockchain industry.

SOURCE: CCN


⛔ CBOE Discontinues Bitcoin Futures

WEDNESDAY, MARCH 20, 2019

The Chicago Board Options Exchange (CBOE), the first exchange to list bitcoin futures, has decided to stop listing the very same product. CBOE stated that it has not fully closed the door on cryptocurrency, but does not intend to list additional bitcoin futures for trading at the moment due to decreased demand.

SOURCE: FORBES


? Coinmarketcap Launches Crypto Indices on Nasdaq, Bloomberg and More

WEDNESDAY, MARCH 20, 2019

CoinMarketCap, announced it will launching two cryptocurrency benchmark indices on Nasdaq Global Index Data Service (GIDS), Bloomberg Terminal, Thomson Reuters Eikon (Refinitiv), Germany’s Börse Stuttgart, and its own platform. The indices cover the top 200 by market capitalization. The first index, CMC Crypto 200 Index (CMC200), includes bitcoin and covers more than 90% of the cryptocurrency market. The second index, CMC Crypto 200 ex BTC Index (CMC200EX) does not include bitcoin, in order to track market performance without its influence. 

SOURCE: COINDESK


⚡ Huobi Launches Token Sale Platform

WEDNESDAY, MARCH 20, 2019

Singapore cryptocurrency exchange, Huobi Global, announced on its blog that Huobi Prime, a dedicated token sale platform. The new platform is geared towards both large and small investors and allows individuals access to new altcoin tokens before they appear on major exchanges. The first project to launch is TOP and will take place on March 26, 2019

SOURCE: COINTELEGRAPH


? Cryptopia’s Trading Service Resumes After Hack

WEDNESDAY, MARCH 20, 2019

New Zealand cryptocurrency exchange, Cryptopia, announced it is resuming its trading service after its hack mid-January. An estimated of 9.4% of the exchange’s total holdings were stolen. Currently, 40 trade pairs have been evaluated as secure and this list will continue to grow as Cryptopia clears more coins. See the full list: here

SOURCE: COINDESK


?? Purchase Bitcoin Down Under With Binance Lite

TUESDAY, MARCH 19, 2019

Cryptocurrency exchange, Binance, has expanded its Binance Lite fiat gateway to Australia. 1,300 newsagent stores will be ready and allow customers to buy cryptocurrency with regular fiat money. In order to use this service, customers will need to pass account verification, including Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

SOURCE: THENEXTWEB


?? Switzerland’s Largest Online Retailer Accepts Bitcoin

TUESDAY, MARCH 19, 2019

Digitec-Galaxus, Switzerland’s “Amazon”, is now accepting bitcoin (BTC) and other cryptocurrencies as payment. Co-founder & Chief Innovation Officer, Oliver Herren, says the company’s move to accept this form of payment method is to target a more tech-savvy audience and position itself as a forward-thinking company. The large online retailer has partnered with Coinify to process all cryptocurrency transactions. 

SOURCE: BITCOINIST


? Fortune 500 Company Accepts Crypto Payments

TUESDAY, MARCH 19, 2019

Fortune 500 company Avnet, one of the largest electronic components distributors worldwide, announced it will now accept bitcoin (BTC) or bitcoin (BCH) as payments for its products and services. Avnet partnered with payment platform, BitPay, who will aid with verifying funds, processing orders, and completing transactions.

SOURCE: ETHNEW


? IBM Signs 6 Banks Ready To Issue Stablecoin

MONDAY, MARCH 18, 2019

IBM officially launches its real-time global payments network, Blockchain World Wire (BWW), in collaboration with Stellar (XLM) is now live. IBM and Stellar announced that six international banks have signed up to issue their own stablecoins on the blockchain-powered payments network. BWW currently supports more than 47 currencies for payments across 72 countries.

SOURCE: COINTELEGRAPH


✋ Bitcoin Futures On the Bakkt Burner

MONDAY, MARCH 18, 2019

The highly anticipated bitcoin futures market, Bakkt, by Intercontinental Exchange (ICE) has yet to receive regulatory approval from the Commodity Futures Trading Commission (CFTC). ICE originally intended to launch the platform in mid-December, but has since delayed the project indefinitely.

SOURCE: COINDESK


? Blockchain Watch: Whale Hello There

WEDNESDAY, MARCH 20, 2019
TUESDAY, MARCH 19, 2019
MONDAY, MARCH 18, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

Digital Cash in Crypto Market Plunges 14% While S&P Surges 11%

By | Coinscious Lab, Data Analytics, Market Report | No Comments

Coinscious Market Report

by Coinscious Lab

January 21, 2019

Biggest
30d % Gain

Augur (REP)
+
135.34%

Biggest 30d %
Gain (Sector)

Data & Information
+44.42%

Biggest
30d % Loss

 Bitcoin Cash (BCH)
-33.31%

Biggest 30d %
Loss (Sector)

Digital Cash
-13.81%

Overview

Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports plan to focus on metrics derived from a 30-day rolling window of data, this time from December 22, 2018 to January 20, 2019.

Our universe of analysis includes 51 of some of the most widely used and traded cryptocurrencies, and groups them into sectors that reflect similar utility and valuation models. Through analysis of the recent historical performance of individual cryptocurrencies as well as their sectors, we provide a framework for analysis where investors can identify outperforming cryptocurrencies or sectors by comparing their performance relative to peers.

Sector
Constituent Coins/Tokens
Digital Cash BTC, BCH, BSV, LTC, BTG, DOGE, DCR, BCD, DGB
Privacycoins XMR, DASH, ZEC, XVG
DApp Platforms ETH, EOS, ADA, NEO, ETC, XEM, XTZ, QTUM, LSK, AE, ZIL, ICX, BTM, ETP
Resources SC, GNT
Payments and Settlements XRP, XLM, OMG, NPXS, MKR, PPT
Decentralized Exchanges BTS, ZRX, WAVES
Digital Content TRX, ONT, BAT, STEEM
Data and Information IOTA, VET, LINK, REP
Stablecoin USDT, TUSD, DAI

Analysis

The performance of major cryptocurrencies over the past month has been mixed, with 12 out of the 51 cryptocurrencies that we examined up from their values 30 days ago. Bitcoin (BTC), the largest cryptocurrency by market cap, has been confined between $3500 and $3900 since January 11, and is currently trading at the low end of that range around $3600. Outside of cryptocurrencies, the S&P 500 has been performing well, up 10.51% from 30 days ago and closing last Friday at $2670.71.

Figure 1 presents the risk versus return trade-off over the past 30 days by plotting mean daily return versus historical daily volatility for various cryptocurrencies.

Figure 1. Plot of mean daily return against historical daily volatility for individual cryptocurrencies from December 22, 2018 to January 20, 2019. Higher returns at a given level of risk, measured through historical daily volatility, indicates a better investment.

The best performer overall over the past month was Augur’s reputation token (REP), with a total return of 135.34%. The surge in price can be attributed to the announcement of the Viel platform on January 15. Viel is a peer-to-peer trading platform for prediction markets and derivatives built on top of Augur, with the goal of making Augur easier to use and more ubiquitous by making transactions faster and cheaper. Reputation is in the data and information sector, as was the second best overall performer, ChainLink (LINK), which had a total return of 59.72%. Other cryptocurrencies in the data and information sector are IOTA (IOTA) and VeChain (VET).

Bitcoin Cash (BCH) was the worst performing cryptocurrency, with total losses of 33.31%. Bitcoin SV (BSV) was the second weakest, with total losses of  30.32%. Bitcoin Cash and Bitcoin SV both belong to the digital cash sector.

Cobra, the anonymous developer who founded Bitcoin.org, tweeted on January 18, “Bitcoin Cash is dead.” Cobra goes on to claim that Bitcoin Cash needs new leadership, otherwise it’ll be worth $0 in a few years. Cobra also tweeted about Bitcoin SV a little further back on January 7, saying, “Time to sell all my BSV. Worthless shitcoin.” Another high profile member of the cryptocurrency community, Vitalik Buterin, founder of Ethereum, was also critical of Bitcoin SV on Twitter and called it “a pure dumpster fire.”

The tweets don’t appear to coincide with any noticeably large drops in either Bitcoin Cash’s or Bitcoin SV’s prices. Rather, both of them had gradual declines over the past month that fit into a longer term downtrend. However, the negative attention as a result of these tweets is unlikely to present a good opportunity to reverse that downtrend anytime soon.

Several other cryptocurrencies in the digital cash sector, namely Dogecoin (DOGE), Bitcoin (BTC), Bitcoin Gold (BTG), and Bitcoin Diamond (BCD), also had negative returns over the past month.

Figure 2 shows various performance measures of the nine sectors as well as that of the S&P 500 for comparison and Figure 3 plots the performance over time of each sector. Performance between the sectors was mixed, with total returns ranging from -13.81% (digital cash) to 44.42% (data and information). Data and information was also the best performing sector in our previous market report from two weeks ago.

Figure 2. Mean daily returns, historical daily volatility, total returns, maximum drawdown, and ex-post Sharpe ratio for each sector from December 22, 2018 to January 20, 2019. Less negative maximum drawdowns and more positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate

Figure 3a. Price performance over time by sectors that had positive returns between December 22, 2018 to January 20, 2019

Figure 3b. Price performance over time by sectors that had negative returns between December 22, 2018 to January 20, 2019.

Figure 4 shows the correlation between the daily returns of each sector and quantifies some of what we visually observe from Figure 3. Stablecoins had moderate negative correlation with other sectors. As shown in Figure 2, stablecoins continued to fulfill their intended purpose well by maintaining low volatility and mean daily returns near 0%, and a near zero total return of -0.73% over the observation period. As for the other sectors, despite their varying performance, they still had high positive correlation with each other, ranging from 0.77 to 0.97. This is visible is Figure 3 from how sectors often moved up or down together on the same days. The S&P 500 had little correlation with any cryptocurrency sectors.

Figure 4. Correlation between daily returns of each sector from December 22, 2018 to January 20, 2019. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

APPENDIX A: Methodology

The daily price data of cryptocurrencies in USD at 4:00 PM EST from December 22, 2018 to January 20, 2019 was used for our calculations.

The prices are the volume weighted average price of the cryptocurrency in USD at 4:00 PM EST each day across all exchanges where Coinscious has data. If there was insufficient good quality data on a cryptocurrency’s value in USD, we would instead use the cryptocurrency’s value in USDT and apply a conversion rate to turn it to USD. If data was still insufficient, then we would find the volume weighted average price of the cryptocurrency in both BTC and ETH, then converted both into USD, and finally took the mean of those values. The conversion rates we use at a given time are the volume weighted average price of USDT, BTC, or ETH to USD at that specific time across all exchanges where Coinscious has data.

To analyze performance by sector, the prices of constituent cryptocurrencies was normalized by dividing by the price on December 22, 2018, then averaged. When calculating the daily returns using this averaged normalized price, it is equivalent to if each sector was represented as an equally weighted portfolio of its constituent cryptocurrencies formed starting December 22, 2018 and the returns of the portfolio were calculated. Returns used throughout this report refer to simple returns.

Daily closing price data of the S&P 500 index from Yahoo Finance was also used as a proxy to represent the US equity market. The latest 10 year US Treasury bill rate from YCharts was used for calculations involving a risk-free rate.

In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX B: Terminology

  • Volatility:  A measure of the dispersion in the trading price of an instrument over a certain period of time, defined as the standard deviation of an instrument’s returns.
  • Drawdown:  A measure of the decline of the trading price of an instrument or investment since the previous peak during a certain period of time. Less negative, less frequent, and shorter drawdowns are more desirable.
  • Maximum drawdown:   The maximum peak to trough decline of the trading price of an instrument or investment over a certain period of time. Less negative maximum drawdowns are more desirable.
  • Sharpe ratio:  A risk adjusted measure of return that describes the reward per unit of risk. The reward is the average excess returns of an investment against a benchmark or risk-free rate of return, and the risk is the standard deviation of the excess returns. A higher Sharpe ratio is better. Ex-ante Sharpe ratio is calculated with expected returns whereas ex-post Sharpe ratio is calculated with realized historical returns.
  • Correlation:  A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

Crypto Market Recovers: Waves Tops the Chart, Up By 203.50%

By | Coinscious Lab, Data Analytics, Market Report | No Comments

Coinscious Market Report – December 21, 2018


Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports are planned to focus on metrics derived from a 30-day rolling window of data, this time from November 20, 2018 to December 20, 2018. In this report, we also provide analysis on bitcoin price movements from a technical perspective to see where the market as a whole may be headed in the near future.