Digital Asset Weekly, Oct 5

Digital Assets gave up some of last week’s gains to end the week -2.5%. Volume was lighter across most major assets, shrinking volatility to one of the lowest levels of the year.  Breadth was skewed negative with only 42% of the top 200 coins/tokens ending the week higher.  Declines were worst in thinly traded 3rd and 4th tier assets.

Trading this week was light – down ~ 9% from the previous week. LTC and BCH saw follow though from the previous week with volumes up another 40% and 66% respectively.  XRP saw trading pull back sharply after last week’s big XRP Swell Conference surge. Trading in BTC declined slightly, continuing to hover around the $4.3B range while ETH saw its first WoW volume decline after 4 consecutive weeks of gains (chart 5).

Headlines this week were led largely from the exchange / trading side of the space.  Coinbase dominated exchange headlines after publishing its quarterly review, announcing a new head of institutional coverage / product and on reports of new US$8B valuation (up from $1.6B last year).  Outside of Coinbase, the top stories included: 1) TD Ameritrade investing in a crypto platform, 2) BitMEX announcing anew COO, 3) Gemini announcing insurance for its custodial offering and 4) Poloniex continuing its cleanup.

With volatility in the space at one of the lowest levels of the year, continue to expect a significant move in the coming weeks.  Remain cautiously optimistic given strong 4Q seasonality and expectations of several major announcements in the coming weeks (including the release of ICE’s Bakkt physical futures in early Nov and ETF updates).

Read full report here: Digital Asset Weekly Oct 5 2018

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