CRYPTO MOVERS AND PRICES
CRYPTO STORY OF THE DAY
Crypto Has Sold Off This Week With Week With Bitcoin (BTC) Falling -15% Since Saturday - We Provide Insights And Analysis
Takeaway: Over the last week we highlighted an intermediate-term story that could be a tailwind and short-term issues that created risk to the downside for the sector. The former was a narrative quickly taken up by crypto bulls when on the worst day for US equities in 2019, crypto in fact rallied. The thought was that with crypto already proven to have been an outperformer during speculation-heavy trade windows that, if also use of funds in market sell-offs, the asset-class could conceivably outperform in several realistic macro scenarios. With crypto seemingly selling off with the broad-market days later the 'defensive' trade-dynamic cannot currently be relied on.
In addition to getting dragged down with the market, we expect some of the other near term challenges we highlighted, primarily recent exchange stress, has also contributed to the weakness. In our prior note, we cited the BitMEX CFTC investigations, NYAG lawsuit against Bitfinex, Binance BTC/data hack and Coinbase facing a negligence lawsuit surrounding the BCH hard-fork among others. While crypto sell-offs have historically held some correlation with equity market weakness, exchange stress, such as Mt. Gox or Bitfinex issues in October / November 2018 have preceded some of the worst collapses in the space.