It’s been quite the week in the volatile world of cryptocurrencies. Just as everyone finally conceded that alt-coins were dead, Ethereum began to move, sparking a broader rally in the alt-coin market. Is this the start of the promised land for the embattled ALT Coins? Just as it was beginning to look like the bear market would never end, we have light at the end of the tunnel.
However, no crypto-related article would be complete this week without mentioning that Bitcoin has once again surpassed all-time highs. The sideways move is over for now, but how high can it go? I’ve found this consolidation period strange, quite frankly. Not a day has gone by without yet another treasury company announcing further BTC purchases, not to mention net inflows into Bitcoin ETFs. The real question to be asked here – why did it take so long?
But let’s dig into the happenings of the UK crypto stocks market this week:
I’ll start with Smarter Web Company (#SWC). This company has been the barometer of the broader cryptocurrency stock market recently, given its significant surge in share price, which has naturally attracted extensive media coverage. The stock ended last week at £ 3.15 per Share after some consolidation, but it appears to have settled and has since begun moving north again, ending this week at a respectable £3.75, a nice little gain for holders. With four RNSs just this week, it’s no surprise the stock has been moving. News moves stocks, something Mr Webley is well aware of. Importantly for shareholders, this week has seen two further purchases of Bitcoin, bringing the total HODL to 1,275 BTC and an additional £31m, ready to be deployed, I assume, during the next dip.
Next up, SWC’s little brother – Coinsillium Group LTD #COIN – Coin ended last week at a lowly 17p/share, but this week has seen momentum back, and with the wind in its sails, COIN moved all the way up to 25p/Share today – This will leave many holders laughing all the way to the bank, lets not forget Coinsillium was languishing at just over 2 pence at the start of this year, plenty of reason to celebrate for those that got in early. No news this week.
The next one is a personal investment of mine and one I hope to see big things from in the coming months, especially if the broader crypto market rises. Vault Ventures PLC #VULT ended last week at 0.02p/share and finished this week relatively flat at 0.0225p/Share. The stock has received some news this week, with three RNS in total. The main one, for investors, is the end of a successful WRAP Retail Offer, which ended over-subscribed. Investors are waiting for a much-anticipated AMA next week, which will hopefully answer questions surrounding the long-term plan for the company. My reason for investing in this company is simple – I expect ALT coins to move more aggressively and faster than BTC in the coming months. With the outsized performance of the digital assets that VULT plans to purchase, we should see corresponding returns in the stock price. Naturally, do your own research and draw your own conclusions.
The London BTC Company had a run of news this week; sadly for investors, this has not been reflected positively in the share price. The main news this week was a proposed capital raise of between £1m & £5m. The following day marked the conclusion of the fundraiser, with gross proceeds of £1.5 million raised. Perhaps this is what has deterred investors? Is this the end of oversized fundraisers at multiples of NAV? Are investors getting wiser? Or is it simply just a case of bad timing? We will probably never know for sure. An alternative scenario here could be a big seller in the background? Possibly, Valereum PLC trying to realise the capital they have tied up in the miner and treasury stock? The stock ended last week at 18p/Share and concluded this week down at 15.75p/Share.
With the mention of Valereum PLC, it may be worth giving the tokenised asset upstart a moment of our attention. Their stock has been suffering recently after the collapse of a recent fundraise. The stressed shareholders have clearly been running for the exits as the stock has dropped to just 3.9p/Share, a far cry from the heights it reached at the beginning of the year when shareholders were convinced they had finally seen a turnaround in the company’s fortunes. Beginning the year at around 30p/Share, the current situation must be depressing for long-term holders; it has been quite the ride over the past four or so years. That said, this company has turned itself around before, so though they may be down, they are not out just yet.
Although we are already beginning to see winners and losers in this bull market, which has taken everyone by surprise, this may well be the beginning. My personal prediction is we will see steady growth of the broader crypto market into early next year, and what happens then is anyone’s guess. Will the typical four-year cycle finally be broken? Will we tumble into yet another devastating bear market? What happens, assuming rates come down and money becomes cheap again? No one has a crystal ball, so just expect the unexpected and never invest more than you can afford to lose.
Disclaimer: Nothing in this article is intended as investment advice, and readers should always do their own research. The cryptocurrency sector is highly volatile and can move rapidly in both directions. I may be invested in some of the stocks I mention in these articles, so please note that my comments may be biased. Everything is my opinion, so please fact-check.
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