Week 5 Recap
It was another brutal week for cryptocurrencies. On September 14th, the price of bitcoin had retreated nearly $2,000 USD from it's high of $5,000 USD on September 1st as panic spread from Chinese regulatory announcements. A mid-week Chinese government notice stated:
All trading exchanges must by midnight of September 15th publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations.
As well, a deadline of September 20th was set by the Chinese government for exchanges to explain how they will allow users to make withdrawals in a risk-free manner. In compliance with these orders, BTCC will end trading at the end of the month, with OkCoin and Huobi closing at the end of October. My personal fear is that some of these exchanges are actually insolvent, and this forced liquidation will expose something ugly. I hope that's not the case but there could be continued market volatility (hah) over the coming weeks.
Another notable event this week was JP Morgan's CEO, Jamie Dimon, called his daughter stupid and transformed himself into an ordinary campfire pot, only to begin calling bitcoin a fraud. Perhaps Mr. Dimon's extensive history of fraud qualifies him on this subject; though I don't know if I'd trust a man who calls his daughter stupid.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said he would fire any employee trading bitcoin for being “stupid.”
The cryptocurrency “won’t end well,” he told an investor conference in New York on Tuesday, predicting it will eventually blow up. “It’s a fraud” and “worse than tulip bulbs.”
If a JPMorgan trader began trading in bitcoin, he said, “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”
“Don’t ask me to short it. It could be at $20,000 before this happens, but it will eventually blow up,” he said. “Honestly, I am just shocked that anyone can’t see it for what it is.”
However, the banker revealed his daughter had bought bitcoin: “It went up and she thinks she’s a genius now.”
Despite Mr. Dimon's comments and Chinese regulatory ire, the sun appears to be coming out from behind the clouds for bitcoin bulls. Friday saw bitcoin come roaring back, squeezing short sellers and ultimately forcing many of them to close out their positions (i.e. buy bitcoin) boosting the price higher. I don't think we're out of the woods by any means but hopefully we won't be touching that $3,000 USD low again any time soon.
Week 5 Results
This week's winner by a clear margin was Edgeless (EDG) with a gain of +8.14 USD (+117.60%) and the biggest loser was LISK with a loss of -5.59 USD (-22%). LISK has featured prominently in most of my weekly results; we'll see if it has staying power over the coming months. Details below:
|Symbol||Name||Quantity||Price||September 10th||September 17th||Week Change|
Want to follow along?
If you're Canadian and want to try the same thing, I use QuadrigaCX to purchase bitcoin, ethereum, or litecoin to then transfer to an exchange that supports all these alternative currencies. Funding your account is relatively easy as you can use Interac Online to fund your account instantly. I used HitBTC to buy all 31 currencies.