Cryptocurrency Market Update with D Coin – The After Party Hangover

A hangover… that is exactly where the crypto market is right now. 2017 was the huge coming out party and then December, in particular, was the party to end all parties! To put some $ context on the size of the party we know from our membership of the Australian Digital Commerce Association (ADCA) that in 2017 here in Australia around $5.9B was converted into digital currency (a huge number). However, December alone accounted for $3.5B (59% of the 2017 total).

2018 so far is downward across the board and when you think about it the party analogy is spot on. 2017 was such a big year in this space that at some point we had to get that longer-term correction/ consolidation/pullback (headache!). This type of movement is exactly what all markets do, nothing can continue upwards forever.

Looking back in time Q1 in the crypto world has been traditionally weak. In 2016 bitcoin didn’t break above its December high’s until June. In 2017 sustained new highs were not achieved until April. So the fact we are in March and not challenging new highs from a Seasonal analysis viewpoint is not news.

What does that all mean for us at D Coin and you as investors? Well, we are not immune from the effect of the overall downward market trend. Trading conditions have been and continue to be difficult.

From a trading perspective, some of our Trading Systems that were consistently working before going through new phases firstly taking more losing trades, then giving fewer signals and finally switching off. Other Trading Systems that had previously been quiet then start to wake up, they begin to generate signals and the cycle continues. From an investment returns position the current market has put a temporary dampener on the positive momentum we had previously seen.

We firmly believe significant growth is still to come, but we also believe that fundamentals are going to become more prominent this year and onwards. An example of what we mean by that can be seen in the Initial Coin Offering (ICO) market. In 2017 pretty much every ICO saw fantastic growth regardless of their real value proposition or plans (even outright scams did well!!). 2018 has seen a huge rise in the number of ICO’s being done (making the task of selecting which to invest in more difficult) plus most of them are either not achieving their $ investment targets and when released the coins values are mostly going backward not forward.

The overall takeaway being that the market environment is and will be a lot tougher this year than 2017.

About D Coin

D Coin is a unique vertically integrated digital currency business, owned and operated in Australia offering a digital asset investment fund open to retail, wholesale and commercial investors.

The fund operates in the digital asset realm combining multiple proprietary activities across technology, financial markets and cryptocurrency, fully immersing our investors into the fastest asset growth class available.

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