Bitcoin ETF Decisions Likely to Affect Cryptoasset Prices this Month: Report

SFOX, a “prime dealer of cryptoassets for sophisticated traders and institutional investors,” has published its crypto volatility report for April 2019.

Established in 2014, SFOX, a Los Angeles, California-based fintech firm, revealed in its monthly market report that its proprietary Multi-Factor Market Index “remains at mildly bullish entering May 2019.”

As noted in SFOX’s blog post, the firm’s Multi-Factor Market Index is “calculated using a proprietary formula that combines quantified data on search traffic, blockchain transactions, and moving averages.”

Volatility of Cryptocurrencies May Be Affected By “Bitcoin ETF Decisions”

SFOX’s report mentioned that Ether (ETH), Bitcoin Cash (BCH), and Litecoin’s (LTC) “movements were highly correlated” with Bitcoin (BTC). The monthly report from the digital assets dealer revealed that the month of April “highlighted the sustained influence of BTC and individual exchanges on cryptoasset performance.”

According to SFOX’s management, the volatility of cryptocurrencies may be affected by “Bitcoin exchange-traded-fund (ETF) decisions,” expiration of crypto futures contracts, and the discussions during “major” crypto and blockchain conferences such as Consensus which is taking place mid-May.

Key Observations: Bitcoin Price Movements In April 2019

Some of the key observations made by SFOX’s researchers regarding the BTC price are as follows:

  • “Between April 1st and April 3rd, the price of BTC increased over 20%, from $4122.92 to $5017.13. To the extent that this price surge has an explanation, the prevailing notion is that a 20,000 BTC buy order by an anonymous party on April 2nd threw supply and demand out of equilibrium.”
  • The rally in early April caused many large leveraged Bitcoin positions to be liquidated on Bitcoin Mercantile Exchange (BitMEX), a leading Seychelles-registered and Hong Kong-operated crypto derivatives exchange, which may have exacerbated the volatility.
  • “[The present] rally [has been] highly publicized in the media, which could have theoretically caused people to experience some FOMO (fear of missing out), which drove it even higher — similar to what we observed in late 2017, albeit on a smaller scale.”

Key Observations: Ethereum Classic Price Movements In April 2019

A few notable observations regarding Ethereum Classic (ETC) price by SFOX’s research team are as follows:

  • “On April 7th, the price of ETC climbed over 50%, from $5.84 to $8.91. Whether or not this short-lived spike was motivated by changes in ETC’s fundamentals is unclear.”
  • The spike in ETC price “came two days after a public conference call in which the ETC ecosystem discussed its upcoming Atlantis hard fork; while this hard fork isn’t expected until mid-September 2019, its proposed changes are expected to make ETC less manipulable as a network and more (decentralized application) DApp-friendly.”
  • “The data suggest that [the ETC] price spike mostly came from a single source: reportedly, Coinbase Pro facilitated over 37% of ETC trading volume during this time, and ETC’s price on Coinbase Pro reached as high as $14 at peak — well above the marketwide volume-weighted average price.”

Some important events, or developments, to look out for during May 2019, according to SFOX, are as follows:

  • “The US Securities and Exchange Commission (SEC) is set to approve or deny two current Bitcoin ETF proposals in the month of May. Historically, the market has been fairly reactive to news about Bitcoin ETF proposals — therefore, the outcomes here could potentially impact crypto volatility.”
  • “Crypto volatility typically moves around the time of futures expirations. With Cboe having backed off from BTC futures for the time being, the date of CME’s futures expiration may potentially impact volatility more than usual.”

TRON Foundation Announces $20 Million TRX Buyback to Promote Market Stability

The TRON Foundation, an organization created to support the development of the TRON network, has recently announced a $20 million TRX token buyback that’s set to “promote community activity and market stability.”

According to a Medium blog post, the TRX buyback will be “by far the largest” token buyback plan the Foundation has ever had, and will have “the widest coverage in the secondary market.” The buyback is set to last for a year and will have several batches.

The TRON Foundation’s TRX holdings, it added, will be unlocked on January 1 of 2020, although the organization has no plans for its TRX at the time. Currently, one TRX token is trading at $0.034 after falling 10.6% in the last 24-hour period.

The token’s price dropped amid a major market sell-off that has seen the price of some altcoins – including Litecoin, EOS, and XRP – drop by well over 10%. The price of BTC is currently down 5.4% in said period. The selloff is likely being caused by traders taking profits off of the bull run we’ve been seeing since the beginning of the year.

Earlier this year, TRON announced a soon-to-be-released upgrade for its blockchain, called Odyssey 3.6. It’ll reportedly include features that are set to improve the network’s security and stability.

As CryptoGlobe covered, in May of this year the TRON Foundation announced BitTorrent, a leading peer-to-peer file sharing platform, would be incorporating the BitTorrent File System (BTFS) protocol to “allow users to receive and host storage on their computers with other individuals and businesses.”

The TRON Foundation has recently celebrated its Independence Day, as on June 25, 2018 the TRON mainnet was launched and its genesis block was created. Since then, the network has grown to over 3.1 million mainnet addresses, and an average of 1.5 million transactions per day, according to Justin Sun.