Markets Drop As Sell Pressure Increases

Where Do We Go From Here?

I an all-too-familiar move, the market erased much of the gains we saw last week, melting down from 220 Billion and bouncing off the 206 Billion mark three times.

It could very well be that the Mt.Gox trustee, a man known as “Tokyo Whale,” sent the market into a mild panic as he confirmed he unloaded another big chunk of his holdings.

Nobuaki Kobayashi, the trustee of now-defunct Tokyo exchange Mt. Gox, liquidated 24,658 Bitcoin and 25,331 Bitcoin cash between the creditors’ meeting on March 7, 2018, and the start of civil rehabilitation proceedings on June 22, 2018, according to an announcement posted on the Mt. Gox website today. As a result, the estate hauled in about 26 billion yen ($230 million) in cash.

What’s important is that the liquidation period is well past, and for this to affect the market is nonsense, especially in the face of all the good news we saw today.

The big news today is that Bakkt announced they will offer physically delivered Bitcoin contracts.

These will be the first of their kind, as both the CME and CBOE futures are cash settled. This indicates that Bakkt has found a custodian that is both regulated and able to handle the high volumes they expect on their platform. It’s possible they are that custodian, but we won’t know until they release more details.

What’s important here is that this is Bakkt’s first major announcement since they first launched in August, and it’s a giant step forward for the institutionalization of this space, which is the main goal of Bakkt. After all, one of the reasons that the VanEck / SolidX Bitcoin ETF is able to move the market so much is that the ETF is physically settled, unlike any other serious ETF application the SEC has reviewed.

Bakkt is focusing on ease of access, regulatory compliance, and potentially custodianship, which would open crypto to many companies, funds, and investors who were previously locked out of Bitcoin due to regulatory issues.

In their own words:

“Bakkt’s secure global platform will connect investors, merchants and consumers, making it easier, faster and more cost-effective to access, trade and use digital assets. Bakkt’s open-source, neutral platform will be designed to meet applicable regulatory requirements, and to support innovation around digital assets and blockchain applications.”

If you want an excellent article on the full scope of their plan, Fortune.com’s article is incredibly informative and well-written.

The next piece of news to consider is that Google is ending its sweeping ban on cryptocurrency-related advertising and plans to allow regulated crypto exchanges to buy ads in the United States and Japan. The new policy starts in October.

This is what we predicted back in June when Facebook reversed their ban, and we foresee that the advertising giants will continue to allow cryptocurrency on their platforms.

Google’s original restrictions, which it announced in March and rolled out in June, were intended to protect consumers and included initial coin offerings (ICOs), wallets and trading advice, which are still not allowed.

While the cryptocurrency boom has produced both excitement and wealth, it has also spawned fraud and high-profile scams, as regulation struggles to catch up with a fast-moving space. At various points earlier this year, Google, Facebook, Twitter and Snap all cracked down on crypto-related advertising to stop bad actors, though their initial hard-line approaches prevented even legitimate businesses from buying ads.

“We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm that it’s an area that we want to approach with extreme caution,” a Google representative said.

Just like Facebook, they’ll restrict advertising access to companies that prove to be legitimate. While it is very much a contentious case regarding free speech, ultimately they are responsible for the users on their platform, and I’m sure they don’t want another Bitconnect serving ads.

Another giant of industry is also rolling out new blockchain plans: Walmart.

After a two year pilot, Walmart is rolling out a blockchain solution to track shipments from food to plate. Partnering with IBM, the technology will allow them to identify compromised points in the chain and respond to issues more quickly.

This is in response to the romaine E. coli outbreak this past spring, and as such Walmart is implementing blockchain technology to manage its romaine and spinach supply chains.

“Last year, Walmart conducted an experiment trying to trace the source of sliced mangos. It took seven days for Walmart employees to locate the farm in Mexico that grew the fruit. With the blockchain software developed by IBM, the mangos could be tracked in a matter of seconds, according to Walmart.”

What’s important is that this is one of the first blockchain trials of this scale. All eyes will be on the trial to see how it pans out.  If this trial goes well, other corporations are sure to follow in Walmart’s steps. It’s critical that large first movers take the plunge into blockchain so that others can learn from them and follow in their footsteps.

Overall, it has been another exciting day in this space, even if price doesn’t reflect that.

We’re seeing high volume across the board, which could predicate a turnaround if enough pressure gets on the other side. We’ll see how this move plays out, but for right now it could easily go either way.

Doc will be doing a live class this Wednesday evening (and repeating it Thursday evening and Friday afternoon) on the topic “Chart Like a Pro: Four Powerful Rules for Crypto Trading.” He’ll boil down his advanced multi-timeframe Fractal analysis into four simple rules which can add structure to any system. Sign up for Wednesday’s session here. 

We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Thirteen is now available. Episode Thirteen is our interview with the CEO of Internxt about his upcoming beta of distributed storage services using Xcloud. (like a Dropbox). Look for more episodes shortly as we comb the crypto space for valuable interviews, and create valuable content to keep you in the loop! See you tomorrow!

We will be conducting live presentations of Doc’s “Fractal Energy Trading” class this week. The first presentation will be Wednesday Evening at 8pm ET (New York) and you may register here. Doc will also repeat the class in YouTube Live on Thursday evening at 8pm ET and Friday early afternoon ET; watch this space for details. Doc has also been doing a daily “Trade School” video with links in the Premium Chat room of the Discord page.

New to Cryptocurrencies? Check out our archived classes “Intro to Cryptocurrency Trading”, “How to Find Your Next Big Cryptocurrency: Intro to Fundamental Analysis,” Mav’s  class on “Security and Wallets” and Doc’s classes, “Introduction to Technical Analysis” and “Short Term Trading Strategies” which are now all available for immediate purchase in our Store, and seconds away from viewing in the Premium Member’s Home. View more about them at our online store by CLICKING HERE.

Sign up for Doc’s class “Four Powerful Rules for Crypto Trading” here!

Sign up for our NEW Telegram channel by clicking here!

Watching on Mobile? Click this link to watch in HD

Check out our BLOG for the latest videos, posts, and Podcasts! Click this link and bookmark the page!

If you go to buy any of our courses at our online “store” you can receive $10 off the street price with your member’s “coupon code” of member18crypto

Check out our new merch store! Simply go into the regular store and select “Merchandise” to pick up some RSC merch!

Defensive Actions for the next trading day: 

• None.