Morning Report: It’s IPO week, but not yet, so let’s check in on the broad crypto selloff to start our week.
Cryptocurrencies are down today, with just four out of the top 100 cryptos (by market cap) rising in the last 24 hours, according to data collected by CoinMarketCap.
Both cryptos big and small are suffering. Bitcoin is off 6 percent in the last 24 hours. Ethereum, a relative newcomer, is off 16.8 percent in the last day. Ripple is off 6.8 percent over the same time period. Litecoin is off nearly 14 percent, and Ethereum Classic is off 13.8 percent since Sunday.
That’s just the top five.
Heading down on the list, only Tether, CloakCoin, LEOcoin, and something called OBITS are up. Don’t worry; I haven’t heard of them either.
Saying that four of the top 100 are up as if it matters actually feels too generous. The largest of the four winners ranks 36th in market cap, with the other three falling further down. It’s fairer to say that cryptos are pointing in only one direction today: down.
Here’s the chart, in case you were so inclined, of the aggregate value of cryptocurrencies (CoinMarketCap):
Two quick observances you should note:
- As you can quickly see, this isn’t even the worst correction in June, and in the run-up to the June highs, an even steeper decline was registered. With those corrections, cryptos have shown that they can endure some profit taking without collapse.
- Cryptos are in at least a short-term bubble. It may be that current prices for cryptos make sense in a few years, but as it stands, current trends are too hot right now to not boil over. That’s fine, and it’s not a surprise. But it does leave the question as to when the real correction is coming and how sharp it will be.
As with every day we mark like this, today could be the start of the correction. But who wants to spend their time calling market tops? It’s just as fun to sit on the beach shouting “cloud! cloud!” as loudly as you can while people have a good time.*
*This metaphor only works if you are not long cryptos.
From the Crunchbase Daily:
Houzz secures $400M
- Home remodeling site Houzz has announced the close of a $400 million Series E financing led by Iconiq Capital. The round was previously reported but until now not confirmed by the company.
Telemedicine sees funding surge
- The doctor will text you. Venture funding for telehealth startups has been on a tear, up sevenfold in three years to top $650 million in 2016, Crunchbase News reports. An easing of regulations around remote healthcare services, combined with surging demand from patients, is fueling growth.
SparkCognition raises $32M
- Venture investors like their artificial intelligence deals. SparkCognition, an Austin-based provider of AI-enabled security analytics, has raised $32 million in a Series B financing round led by Verizon Ventures and joined by Boeing.
- What’s bad for Uber is good for Lyft. That how things seem to work on secondary markets, Crunchbase News reports. Uber is now valued around $50 billion, a far cry from the $68 billion TechCrunch estimates primary investors have assigned it. Lyft also trades at a discount to primary investors’ valuation, but a smaller one.
Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.
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