Dear Colleagues,
One week at a time... or "crypto in small doses" seems to be the mantra over the past couple of months. Well, last 7 days were no exception. Starting at very depressed levels, all three indices (Gold, Silver, and Bronze) had a lot of resistance to overcome on their way toward the "median" levels. As we move forward, it will be important to determine how the increasingly legitimate "crypto space" fits into the existing landscape of modern finance. This will of course differ when it comes to specific application(s) of each "coin" - from store of value to currency to practical blockchain apps. Below is the breakdown of individual index performances for the week ending October 4, 2019:
1) Gold Index - "The fall stops here... for now." This pretty much sumps up the movement of the large caps within the index. Up 1% this week, the index performance seems to be following Bitcoin's new range-bound fluctuations between $7,900 and $8,200. There are too many economic and political events to clearly attribute index behavior to... uncertainty is the only constant. Right now, we are in a holding pattern that will have to resolve itself one way or another. One underappreciated fact that many seem to miss - The increasing USD strength may have something to do with the relative weakness in all currencies, including "crypto" currencies.
2) Silver Index - Overall similar to the Gold Index, with the only difference being a 1.3% drop (as opposed to 1% increase). Given the volatility of individual components, more choppy trading is likely in the cards for the upcoming week. Moreover, some of the positions within the Silver Index are being actively affected by the closing of two major altcoin exchanges. Until that situation stabilizes, there will likely be more price swings over the next 3-4 weeks. Once new marketplaces / exchanges become established, this temporary state should fully resolve.
3) Bronze Index - This is the singular success story for the week. The index is up 9.8% after a large drop two weeks ago. Looking at the 2-week moving average, we are just above the "dashed line." This may mean that the worst is behind us, and that the next move will either be "lateral" or "up" with the long-term line showing resistance/support levels in the $49-50 range. Given the deleterious effect of announced exchange closures on the Bronze Index in the recent past, many of the positions seem to be emerging from that temporary selling pressure.
Other items - Great thanks to Zapple and NLexch for their flexibility and generosity in hosting new coin pairs. Also kudos to the EWMCI Leadership Alliance - including Bee from Unitus and Clockuniverse from Terracoin for spearheading some key coin pair transitions / listings to avoid market disruptions resulting from exchange closures.
Till next week!
Stan / EWMCI.info
Embrace DIY Index Crypto Investing - Your decisions. Your coins. Your control!
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