The Urban Elitist - Markets for Mere Peasants - Crypto, Bitcoin, Forex, Commodities Analysis

After a strong buying momentum move after Finex banking panic. It seems the market felt the best decision was to russle it. Majority of emotional participants are always attractive to manipulate. Meanwhile the SEC has truly cranked up actions against the unlawful ICO securities. Projects are slowly learning things go more smoothly when products are real and active instead of vaporware salesmen.

More exciting cryptocurrency news came out recently, Fidelity one of the worlds largest asset managers announced its going to be offering BTC and Ethereum products. Fidelity manages $2.4 trillion in assets so this news was huge. Also they disclosed that they have been mining since 2015, this confirms a lot of my suspicions about the larger institutions accumulating. Clearly this market is being prepped up for another super cycle with headlines like this as catalysts. It makes perfect sense for Bitcoin to trend towards trillion dollar market cap or higher, it will take maybe until 2020 to fulfill the prophecy but its signs are there.

Markets can trend for years ride on hype, export markets of commodities are cornered by cartels that have the advantage of information of their own large OTC transactions. Whatever market you are in  just envision who the large exporters are and most likely they will be the people in control. The same goes for crypto, Bitcoin has had a supercycle since 2016 and now another 6-7 months consolidation as the market has seen before, OTC hype is strong amongst institutions interested in the trade, this goes as high as the governments investment funds. I believe we are in for the next crypto super cycle and we will see some interesting decentralized applications come out of this.

As I long expected, the Bitcoin market is exploding with instutional demands. OTC desks have reported to have demand from wealth funds and banks have started opening crypto-currency trading desks meaning they will start to provide liquidity to the market. This tells me that there's a very good chance that there have been huge OTC deals made with institutional players and that soon exchanges will show this in price. Currently the Bitcoin market cap sits around 1-200 billion and it is my belief that this is too low for the type of capital flow coming from the traditional financial world. I believe once we have priced in this adoption phase and we are trading in the trillions, Bitcoin will be a protective asset like Gold and it will takeover it's function as such. If you know anything about the Gold market you know there's a high correlation with foreign exchange pairs and that it has a very important role in how capital flows and is protected in times of uncertainty. A g

As announced by the CBOE on the 10th their platform launched a Bitcoin futures market, by this move they beat CME and this showed as they instantly had volume. This means the coming weeks gonna be important to watch in the Bitcoin market, the question is if large coin holders are looking to hedge down or that players looking to short the top of the bear market are coming in to cause at least a short term squeeze which could put us again at new highs. What ever is gonna happen the days between now and the end of the year are definitely to be watched for opportunity for the speculator, this also counts for other cryptocurrencies like Ethereum and a lot of the altcoins that have been steady accumulating.

Bitcoin reached prices close to $10,000 in anticipation of more regulated derivative product launches like the CME, the influx of institutional capital is at an all time high and OTC dealers should be running dry. Now where will this rally end? $10,000 has been a heavy promoted number by the larger players, usually this means their distribution is around those prices and possibly calling the target makes them credible in the future. At some point it becomes irrational to have any expectations of significant increases, smarter money will pull buy orders and the selling cascade that follows will initiate a full crash, till we see some clear reversal signals though the trend is still up. I think the public promotion of the $10,000 number though will have down pressure on the price, this will create all the more momentum.