Cryptocurrency

The Month In Review: Analyzing The Cryptocurrency Markets For June

Cryptocurrency
• Dave Reiter
July 2, 2020

The month leading up to July 1 was rather uneventful for the crypto universe, but not for DGTX! Yesterday’s KuCoin listing announcement, together with a boost to trader numbers above 1000, provided a stellar end to the month with a spectacular 15.9% gain compared to June 1.  

Elsewhere, the financial markets continue to remain focused on COVID-19 in terms of how the pandemic will impact the global economy. The rest of the major cryptocurrencies turned in a rather poor performance for the month. As you can see from the table, only three tokens were able to generate a positive rate of return with DGTX obviously the big winner.

Crypto Results For June

Cryptocurrency June 1 July 1 % Change
DGTX .0434 .0503 15.9%
Zcash 51.69 51.93 0.5%
Ethereum 230.98 231.15 0.1%
Monero 65.07 64.63 (0.7%)
Bitcoin 9,461 9,232 (2.4%)
Bitcoin Cash 239.88 223.79 (6.7%)
NEO 10.97 10.16 (7.4%)
Litecoin 45.49 41.72 (8.5%)
Dash 76.53 68.37 (10.7%)
EOS 2.67 2.37 (11.2%)
XRP .2029 .1770 (12.8%)

Source: CoinMarketCap

Digitex Delivers On Its Promise     

Digitex continues to onboard new traders to its state-of-the art trading platform, exceeding 1,000 mainnet users as of last week. The transition from testnet to mainnet has been very successful – so much so, that the DFE will be aggressively increasing the number of mainnet users from now on, aiming for 30,000 by the time of the public launch. This validates the fact that Adam Todd and the entire Digitex team have delivered on their promise to provide a cutting edge trading experience on a zero-fee exchange.

As you can see from the performance table, DGTX has rewarded its HODLers with a substantial rate of return during the past 30 days. Why did the native currency generate such a dramatic rally? Because DGTX has finally gained the recognition to become listed on a major global crypto exchange. 

Crypto traders can now access the DGTX token on KuCoin, which is one of the fastest-growing crypto exchanges, with over five million users. The KuCoin listing is another example of Digitex’s commitment to deliver on its promise to make Digitex one of the premier leaders in the crypto futures exchange industry. 

The future is bright at Digitex.    

Personal Comments

DGTX has the potential to move sharply higher. Please review the Fibonacci levels. 

DGTX Fibonacci Price Levels

Level 1 Level 2 Level 3 Level 4
.0548 .0717 .0886 .1435
Level 5 Level 6 Level 7 Level 8
.1773 .1983 .2152 .2321

Reviewing the Month in Crypto – Why Is Ethereum Outperforming Bitcoin?

Without question, Bitcoin is the undisputed leader of the crypto universe. BTC was the first cryptocurrency to enter the mainstream media. It easily dominates the digital asset ecosystem by controlling 64% of the market capitalization of all cryptocurrencies. When people discuss cryptocurrencies, they are usually referring to Bitcoin. 

However, just because BTC is the most popular cryptocurrency does not necessarily mean that it is the best performing digital asset. Bitcoin enjoyed a dramatic rally in 2017, easily outperforming all cryptocurrencies. 

Nevertheless, during the past 2 ½ years, BTC has struggled to regain its momentum. Although the price of Bitcoin has risen in 2020, it has been outperformed by several cryptocurrencies, most notably Ethereum (ETH). 

For example, ETH has increased by 68.4% during the past three months versus 36.2% for BTC. During the past six months, ETH has dramatically outperformed BTC. The numbers are 82.3% for ETH versus 27.6% for BTC. 

Why has Ethereum outperformed BTC in 2020? More importantly, will this trend continue? Let’s examine the details.    

Why Investors Are Bullish on ETH

Unlike Bitcoin, developers can program Ethereum to build new kinds of decentralized applications. Once these applications are uploaded to Ethereum, they will always run exactly as programmed. During the past few years, thousands of developers all over the world have been building applications on Ethereum.

Now, more Fortune 500 companies use Ethereum than any other cryptocurrency for their blockchain projects. Digitex also relies on the Ethereum blockchain for operating its commission-free crypto futures exchange.           

The most significant development Ethereum has enabled is smart contracts, allowing for the performance of a credible transaction without the need for a third party. You can use these contracts to mint tokens representative of money, property, shares of stock, fine art, automobiles, precious metals, or anything of value. The list is endless. Now, smart contracts are ushering in a new age of decentralized finance.

The Growth of DeFi

Beginning in 2019, several prestigious Wall Street firms began losing their most talented employees. These employees were abandoning six-figure jobs for the opportunity to work in cryptocurrency and blockchain technology. The “hot jobs” were in the area of decentralized finance, which is the migrating of financial services to a decentralized platform. 

DeFi, as it is more commonly known, has exploded in popularity during the past 12 to 18 months. In terms of cryptocurrency use cases, DeFi easily has some of the most upside potential. 

Why? Because financial services is a multi-trillion dollar industry. Specifically, global financial services is projected to reach $26.5 trillion by 2022. The overwhelming majority of crypto companies who are actively involved in DeFi have chosen to use the Ethereum blockchain for their various projects. 

This is simply another example of why ETH has outperformed BTC throughout 2020. Will this trend continue? Of course, it’s impossible to accurately forecast crypto trends. At least for now, traders and investors prefer ETH over BTC.       

Technical Analysis Favors Ethereum Over Bitcoin

In terms of technical analysis, ETH has a more bullish chart pattern than BTC. ETH is on the verge of a bullish breakout @ 252.05 (Chart #1).

The Month In Review: Analyzing The Cryptocurrency Markets For June 1

The bullish breakout for BTC is 10391. As you can see from Chart #2, BTC is not even close to its bullish breakout.

The Month In Review: Analyzing The Cryptocurrency Markets For June 2

Additionally, ETH has easily outperformed BTC during the past six months.      

Wrapping It Up

While BTC remains the first and flagship cryptocurrency, DGTX and ETH both offer more in the way of real-world utility. Nobody is suggesting that BTC is going to lose its position. However, the gains we’ve seen recently demonstrate that there’s an appetite for cryptos that deliver. Both DGTX and ETH are doing just that. 

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.   

July 2, 2020
Cryptocurrency

The Month In Review: Analyzing The Cryptocurrency Markets For June

Dave Reiter
Cryptocurrency

The month leading up to July 1 was rather uneventful for the crypto universe, but not for DGTX! Yesterday’s KuCoin listing announcement, together with a boost to trader numbers above 1000, provided a stellar end to the month with a spectacular 15.9% gain compared to June 1.  

Elsewhere, the financial markets continue to remain focused on COVID-19 in terms of how the pandemic will impact the global economy. The rest of the major cryptocurrencies turned in a rather poor performance for the month. As you can see from the table, only three tokens were able to generate a positive rate of return with DGTX obviously the big winner.

Crypto Results For June

Cryptocurrency June 1 July 1 % Change
DGTX .0434 .0503 15.9%
Zcash 51.69 51.93 0.5%
Ethereum 230.98 231.15 0.1%
Monero 65.07 64.63 (0.7%)
Bitcoin 9,461 9,232 (2.4%)
Bitcoin Cash 239.88 223.79 (6.7%)
NEO 10.97 10.16 (7.4%)
Litecoin 45.49 41.72 (8.5%)
Dash 76.53 68.37 (10.7%)
EOS 2.67 2.37 (11.2%)
XRP .2029 .1770 (12.8%)

Source: CoinMarketCap

Digitex Delivers On Its Promise     

Digitex continues to onboard new traders to its state-of-the art trading platform, exceeding 1,000 mainnet users as of last week. The transition from testnet to mainnet has been very successful – so much so, that the DFE will be aggressively increasing the number of mainnet users from now on, aiming for 30,000 by the time of the public launch. This validates the fact that Adam Todd and the entire Digitex team have delivered on their promise to provide a cutting edge trading experience on a zero-fee exchange.

As you can see from the performance table, DGTX has rewarded its HODLers with a substantial rate of return during the past 30 days. Why did the native currency generate such a dramatic rally? Because DGTX has finally gained the recognition to become listed on a major global crypto exchange. 

Crypto traders can now access the DGTX token on KuCoin, which is one of the fastest-growing crypto exchanges, with over five million users. The KuCoin listing is another example of Digitex’s commitment to deliver on its promise to make Digitex one of the premier leaders in the crypto futures exchange industry. 

The future is bright at Digitex.    

Personal Comments

DGTX has the potential to move sharply higher. Please review the Fibonacci levels. 

DGTX Fibonacci Price Levels

Level 1 Level 2 Level 3 Level 4
.0548 .0717 .0886 .1435
Level 5 Level 6 Level 7 Level 8
.1773 .1983 .2152 .2321

Reviewing the Month in Crypto – Why Is Ethereum Outperforming Bitcoin?

Without question, Bitcoin is the undisputed leader of the crypto universe. BTC was the first cryptocurrency to enter the mainstream media. It easily dominates the digital asset ecosystem by controlling 64% of the market capitalization of all cryptocurrencies. When people discuss cryptocurrencies, they are usually referring to Bitcoin. 

However, just because BTC is the most popular cryptocurrency does not necessarily mean that it is the best performing digital asset. Bitcoin enjoyed a dramatic rally in 2017, easily outperforming all cryptocurrencies. 

Nevertheless, during the past 2 ½ years, BTC has struggled to regain its momentum. Although the price of Bitcoin has risen in 2020, it has been outperformed by several cryptocurrencies, most notably Ethereum (ETH). 

For example, ETH has increased by 68.4% during the past three months versus 36.2% for BTC. During the past six months, ETH has dramatically outperformed BTC. The numbers are 82.3% for ETH versus 27.6% for BTC. 

Why has Ethereum outperformed BTC in 2020? More importantly, will this trend continue? Let’s examine the details.    

Why Investors Are Bullish on ETH

Unlike Bitcoin, developers can program Ethereum to build new kinds of decentralized applications. Once these applications are uploaded to Ethereum, they will always run exactly as programmed. During the past few years, thousands of developers all over the world have been building applications on Ethereum.

Now, more Fortune 500 companies use Ethereum than any other cryptocurrency for their blockchain projects. Digitex also relies on the Ethereum blockchain for operating its commission-free crypto futures exchange.           

The most significant development Ethereum has enabled is smart contracts, allowing for the performance of a credible transaction without the need for a third party. You can use these contracts to mint tokens representative of money, property, shares of stock, fine art, automobiles, precious metals, or anything of value. The list is endless. Now, smart contracts are ushering in a new age of decentralized finance.

The Growth of DeFi

Beginning in 2019, several prestigious Wall Street firms began losing their most talented employees. These employees were abandoning six-figure jobs for the opportunity to work in cryptocurrency and blockchain technology. The “hot jobs” were in the area of decentralized finance, which is the migrating of financial services to a decentralized platform. 

DeFi, as it is more commonly known, has exploded in popularity during the past 12 to 18 months. In terms of cryptocurrency use cases, DeFi easily has some of the most upside potential. 

Why? Because financial services is a multi-trillion dollar industry. Specifically, global financial services is projected to reach $26.5 trillion by 2022. The overwhelming majority of crypto companies who are actively involved in DeFi have chosen to use the Ethereum blockchain for their various projects. 

This is simply another example of why ETH has outperformed BTC throughout 2020. Will this trend continue? Of course, it’s impossible to accurately forecast crypto trends. At least for now, traders and investors prefer ETH over BTC.       

Technical Analysis Favors Ethereum Over Bitcoin

In terms of technical analysis, ETH has a more bullish chart pattern than BTC. ETH is on the verge of a bullish breakout @ 252.05 (Chart #1).

The Month In Review: Analyzing The Cryptocurrency Markets For June 3

The bullish breakout for BTC is 10391. As you can see from Chart #2, BTC is not even close to its bullish breakout.

The Month In Review: Analyzing The Cryptocurrency Markets For June 4

Additionally, ETH has easily outperformed BTC during the past six months.      

Wrapping It Up

While BTC remains the first and flagship cryptocurrency, DGTX and ETH both offer more in the way of real-world utility. Nobody is suggesting that BTC is going to lose its position. However, the gains we’ve seen recently demonstrate that there’s an appetite for cryptos that deliver. Both DGTX and ETH are doing just that. 

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.   

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The Month In Review: Analyzing The Cryptocurrency Markets For May 5

The Month In Review: Analyzing The Cryptocurrency Markets For May

Crypto Industry
• Dave Reiter
May 30, 2020

Cryptocurrencies have a reputation for being volatile but the month of May has bucked the trend, finishing up rather uneventful. Despite the “big news” of the Bitcoin halving on 11 May, the major cryptos turned in a mediocre performance for the month. Furthermore, Goldman Sachs have been causing uproar in the crypto community this week. This month’s roundup looks at recent events and what it could mean for the future of crypto. 

As you can see from the table, approximately 50% of the coins generated a positive rate of return. The remaining coins generated small losses. NEO was the leader of the pack, with a solid monthly gain of 16.3%.

The Month In Review: Analyzing The Cryptocurrency Markets For May 6

Will Cryptocurrencies Ever Become A Major Asset Class?

Firstly, what is an asset class? It is a group of financial instruments that share similar financial characteristics and behave similarly in the global marketplace. From a broad macro perspective, these financial instruments are divided between real assets and financial assets. 

Real assets consist of commodities and real estate. Financial assets consist of stocks, bonds and cash. Therefore, there are a total of five major asset classes. 

During the past few years, an increasing number of have investors have argued that cryptocurrencies should be listed as a major asset class within the realm of financial assets. Their argument is based on the fact that cryptocurrencies are playing an ever-increasing role in the global investment ecosystem. However, this week, Goldman Sachs made waves in the cryptocurrencies universe as they declared on an investor call that “cryptocurrencies are not an asset class.”

However, there are legitimate reasons why cryptocurrencies have a valid place among other asset classes. Let’s discuss the details.

Without question, the crypto universe has experienced unprecedented growth during the past decade. In terms of Bitcoin market capitalization, the rate of growth has been staggering. Take a look at the market cap of BTC from 2013 through 2020. 

Bitcoin Market Capitalization (Source: Statista):

  • Q1 2013 – $1.02 USD billion
  • Q1 2014 – $5.75 USD billion
  • Q1 2015 – $3.40 USD billion
  • Q1 2016 – $6.41 USD billion
  • Q1 2017 – $17.56 USD billion
  • Q1 2018 – $117.56 USD billion
  • Q1 2019 – $72.34 USD billion
  • Q1 2020 – $117.81 USD billion

During the past seven years, the market capitalization of Bitcoin has increased 11,450%. From a historical perspective, this represents the largest percentage move compared to any other asset class over a 7-year period. 

How does the market capitalization of cryptocurrencies compare with other major asset classes? Well, check out the following data compiled from Bloomberg, Savills PLC, Futures Industry Association and Federal Reserve System.    

Market Capitalization Of Asset Classes  

  • Global Real Estate – $228 trillion
  • Global Bond Market – $102.8 trillion
  • Global Bank Deposits (cash) – $86.5 trillion
  • Global Stock Market – $67.5 trillion
  • Global Commodities – $33.6 trillion

As you can see from the data, the market cap of Bitcoin is tiny compared to the other major asset classes. In fact, even if we include the market cap of all cryptocurrencies ($263.9 billion), the values are not even close. Cryptocurrencies are less than 1% the size of the smallest major asset class, commodities. 

Size isn’t Everything

The relative size of the crypto universe should not be the only determining factor when deciding if cryptocurrencies should be listed as a major asset class. In addition to market cap, another important factor is asset correlation. For example, do cryptos move in the same direction as the other major asset classes? A lack of correlation was one of the key arguments put forward by Goldman Sachs in the recent controversial investor call. 

Based on historical results over the course of the past decade, the answer is “No.” Cryptocurrencies have a tendency to move independently of stocks, bonds, commodities, and real estate. Asset correlation is a very important determining factor because it provides investors with the opportunity to diversify their investment portfolios. However, it’s worth bearing in mind that gold derives a large part of its value precisely because it has an inverse relationship with other asset classes. 

The Reach of Crypto is its Biggest Selling Point 

Arguably, the most important factor in determining the suitability of cryptocurrencies as a major asset class is availability. Are cryptocurrencies available to the global investment community? Can investors from all over the world buy and sell cryptocurrencies? Generally speaking, the answer is “Yes.” 

In fact, in terms of accessibility, cryptocurrencies have a longer global reach than stocks, bonds, or commodities. It’s much easier for people in developing countries to purchase cryptocurrencies in comparison to stocks, bonds, and commodities. 

Why? Because cryptocurrencies are decentralized. They are not linked to centralized exchanges or legacy financial systems. This is a huge “plus” for cryptocurrencies, as it means they’re more likely to become adopted by people in demographical groups who are traditionally excluded from investing in other asset classes.   

Recognizing cryptocurrencies as a major asset class would be incredibly bullish for Bitcoin, because it would encourage institutional investors, pension funds, family offices, and endowments to become crypto investors. 

For the most part, institutional money has remained on the sidelines in regard to cryptocurrencies. Large institutional investors and high net worth individuals have basically ignored Bitcoin and other cryptocurrencies as a legitimate investment vehicle. But the attitude of the global investment community will completely change if cryptocurrencies are classified as a major asset class. 

Based on the continued growth rate of Bitcoin and other cryptocurrencies, it’s surely only a matter of time before Goldman Sachs is proved wrong, and digital assets take their place among other major asset classes.      

Driving Demand is Key to Growth       

If, and when, the global investment community decides to stop resisting the growth of cryptocurrencies, Digitex will be ready. We’re continuing to onboard new traders to our state-of-the art, zero-fee trading platform. 

But this is just the beginning of the Digitex journey. We’re committed to developing the markets, features, and liquidity of our exchange, but more importantly, to driving demand for the DGTX token. The greater the demand, the bigger the value, and the better the chances that cryptocurrencies will receive the recognition they deserve from the global investment community. 

 

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

 

 

 

 

May 30, 2020
Crypto Industry

The Month In Review: Analyzing The Cryptocurrency Markets For May

Dave Reiter
The Month In Review: Analyzing The Cryptocurrency Markets For May 7

Cryptocurrencies have a reputation for being volatile but the month of May has bucked the trend, finishing up rather uneventful. Despite the “big news” of the Bitcoin halving on 11 May, the major cryptos turned in a mediocre performance for the month. Furthermore, Goldman Sachs have been causing uproar in the crypto community this week. This month’s roundup looks at recent events and what it could mean for the future of crypto. 

As you can see from the table, approximately 50% of the coins generated a positive rate of return. The remaining coins generated small losses. NEO was the leader of the pack, with a solid monthly gain of 16.3%.

The Month In Review: Analyzing The Cryptocurrency Markets For May 8

Will Cryptocurrencies Ever Become A Major Asset Class?

Firstly, what is an asset class? It is a group of financial instruments that share similar financial characteristics and behave similarly in the global marketplace. From a broad macro perspective, these financial instruments are divided between real assets and financial assets. 

Real assets consist of commodities and real estate. Financial assets consist of stocks, bonds and cash. Therefore, there are a total of five major asset classes. 

During the past few years, an increasing number of have investors have argued that cryptocurrencies should be listed as a major asset class within the realm of financial assets. Their argument is based on the fact that cryptocurrencies are playing an ever-increasing role in the global investment ecosystem. However, this week, Goldman Sachs made waves in the cryptocurrencies universe as they declared on an investor call that “cryptocurrencies are not an asset class.”

However, there are legitimate reasons why cryptocurrencies have a valid place among other asset classes. Let’s discuss the details.

Without question, the crypto universe has experienced unprecedented growth during the past decade. In terms of Bitcoin market capitalization, the rate of growth has been staggering. Take a look at the market cap of BTC from 2013 through 2020. 

Bitcoin Market Capitalization (Source: Statista):

  • Q1 2013 – $1.02 USD billion
  • Q1 2014 – $5.75 USD billion
  • Q1 2015 – $3.40 USD billion
  • Q1 2016 – $6.41 USD billion
  • Q1 2017 – $17.56 USD billion
  • Q1 2018 – $117.56 USD billion
  • Q1 2019 – $72.34 USD billion
  • Q1 2020 – $117.81 USD billion

During the past seven years, the market capitalization of Bitcoin has increased 11,450%. From a historical perspective, this represents the largest percentage move compared to any other asset class over a 7-year period. 

How does the market capitalization of cryptocurrencies compare with other major asset classes? Well, check out the following data compiled from Bloomberg, Savills PLC, Futures Industry Association and Federal Reserve System.    

Market Capitalization Of Asset Classes  

  • Global Real Estate – $228 trillion
  • Global Bond Market – $102.8 trillion
  • Global Bank Deposits (cash) – $86.5 trillion
  • Global Stock Market – $67.5 trillion
  • Global Commodities – $33.6 trillion

As you can see from the data, the market cap of Bitcoin is tiny compared to the other major asset classes. In fact, even if we include the market cap of all cryptocurrencies ($263.9 billion), the values are not even close. Cryptocurrencies are less than 1% the size of the smallest major asset class, commodities. 

Size isn’t Everything

The relative size of the crypto universe should not be the only determining factor when deciding if cryptocurrencies should be listed as a major asset class. In addition to market cap, another important factor is asset correlation. For example, do cryptos move in the same direction as the other major asset classes? A lack of correlation was one of the key arguments put forward by Goldman Sachs in the recent controversial investor call. 

Based on historical results over the course of the past decade, the answer is “No.” Cryptocurrencies have a tendency to move independently of stocks, bonds, commodities, and real estate. Asset correlation is a very important determining factor because it provides investors with the opportunity to diversify their investment portfolios. However, it’s worth bearing in mind that gold derives a large part of its value precisely because it has an inverse relationship with other asset classes. 

The Reach of Crypto is its Biggest Selling Point 

Arguably, the most important factor in determining the suitability of cryptocurrencies as a major asset class is availability. Are cryptocurrencies available to the global investment community? Can investors from all over the world buy and sell cryptocurrencies? Generally speaking, the answer is “Yes.” 

In fact, in terms of accessibility, cryptocurrencies have a longer global reach than stocks, bonds, or commodities. It’s much easier for people in developing countries to purchase cryptocurrencies in comparison to stocks, bonds, and commodities. 

Why? Because cryptocurrencies are decentralized. They are not linked to centralized exchanges or legacy financial systems. This is a huge “plus” for cryptocurrencies, as it means they’re more likely to become adopted by people in demographical groups who are traditionally excluded from investing in other asset classes.   

Recognizing cryptocurrencies as a major asset class would be incredibly bullish for Bitcoin, because it would encourage institutional investors, pension funds, family offices, and endowments to become crypto investors. 

For the most part, institutional money has remained on the sidelines in regard to cryptocurrencies. Large institutional investors and high net worth individuals have basically ignored Bitcoin and other cryptocurrencies as a legitimate investment vehicle. But the attitude of the global investment community will completely change if cryptocurrencies are classified as a major asset class. 

Based on the continued growth rate of Bitcoin and other cryptocurrencies, it’s surely only a matter of time before Goldman Sachs is proved wrong, and digital assets take their place among other major asset classes.      

Driving Demand is Key to Growth       

If, and when, the global investment community decides to stop resisting the growth of cryptocurrencies, Digitex will be ready. We’re continuing to onboard new traders to our state-of-the art, zero-fee trading platform. 

But this is just the beginning of the Digitex journey. We’re committed to developing the markets, features, and liquidity of our exchange, but more importantly, to driving demand for the DGTX token. The greater the demand, the bigger the value, and the better the chances that cryptocurrencies will receive the recognition they deserve from the global investment community. 

 

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

 

 

 

 

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