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Sep 25, 2018 Last Updated 9:51 AM, Sep 15, 2018

Ethereum to die by CBOE Futures

  • Aug 31, 2018
  • By  Mikaeel Dada
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Published in DeCrypted Thoughts
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The last Friday of every month signals three things:

  • Monthly Closure on the Charts
  • Weekly closure on the charts
  • Fresh new Month of trading

The 31stof August isn’t anything different, it signals all three and the start of Quarter 3 of 2018. This is the month where a large amount of Crypto-Assets were supposed to release their Mainnet, but they delayed – most likely owed to poor market conditions.

Ziliqa is one of them, this says a lot about their project, they are more willing to delay their uniqueness for 6 months to take advantage of a better market climate. A nearby competitor, LISK that accomplishes near enough the same sort of strategy, decided to list their Mainnet this week. They shot up by 30% on the week.

Lisk was one of the only cryptocurrencies that was not down more than 40% over the past month. Almost all coins were that are listed on CoinMarketCap.

Even coins such as TRX, that more marketing geniuses than solving anything unique are listing their Mainnet today, with an all-day marketing special. They have seen highs of 30% this week. 6 months ago, news of a Mainnet would have seen 150% growth. This goes to show you how the Cryptocurrency scene can grow from an immaturity phase, but also signals the bear market or negative market according to Nouvive.

EOS, backed by Block One has interestingly shot up against Industry advisor’s initial thoughts by 15%, the reason is owed to Market sentiment as opposed to any intrinsic change in the technology.

What does CBOE ETH Futures mean for the market?

Ethereum has dumped from $600 to $254 as a result of poor market conditions, but also owed to the mere fact that all ICO’s transact in Ethereum to take payment for tokens. As the price decreased, they sold off Ether as a hedge, possibly some of them shorting it.

Other commentators have added this event was a black swan event and that them selling off was a misnomer, in fact it was just lack of volume in the market that made it appear that they were selling to get off Ether so that they can fund their projects.

Nonetheless, CBOE ETH allow institutions to now put their money where their mouth is. They now have the ability to use leverage to short such.

The Bitcoin CME/CBOE futures gave enough momentum to get Bitcoin to $19,800. What happened next was unprecedented in the cryptocurrency Market. We saw Bitcoin go from that figure to $6400 at a rate of 2 months – from Dec 19 2017 to Feb 14 2018.

 

The same could be stated of Ethereum, we may see it bounce to $350 on news of the ETH futures, before going to $54, where a lot of buys are for Ether.  

 

 

Last modified on Friday, 31 August 2018 09:27