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All That Money

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Hi Everybody

Hope you had an awesome weekend. If you’re investing in cryptos you definately did.

The cryptocurrency markets are surging again with Bitcoin leading the way. The shiny digital currency saw a new all time high over the weekend to top $3,344 a coin.

All that new value that materialized with the emergence of Bitcoin Cash has been sucked up by Bitcoin itself as we’ll discover below.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

President Out

OPEC Talks

Another Fork Coming

Please note: All data, figures & graphs below are valid as of August 7th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Failed healthcare, new Russia Sanctions, Tax reform hasn’t even started yet, North Korea sanctions ramping up, Special Investigator on his tail, but where is the President?

On vacation, playing golf, of course.

Trump must’ve mentioned every single time that Obama smacked the little white ball so it’s only fitting that we do the same for him.

The man can afford a break though. The markets are behaving nicely. The Dow Jones has now broken a new all time record for eight straight sessions in a row and the U.S. Dollar is weakening just like he wanted it to.

Sticky Stuff

Members of the OPEC oil price fixing group will be meeting today and tomorrow. Last time they met markets were impressed by their ability to speak about the option to intervene in markets and prop up the price further if needed.

If they were disapointed by the fact that Nigeria and Libya were not discussed, it didn’t show up in the price. The articles preparing for today’s meeting seem almost exactly the same as they did ahead of the last. With many analysts stating that they need to put output caps on the two delinquent countries.

The price of oil is dipping this morning as it did last time. Will the members say something different this time? Will the markets react the same?

Though the fundamentals are strikingly similar the technicals are much different. In the last meeting the price was relatively low. Right now, we’re at a price that could be seen as average.

The blue line in the graph below is the 200 day moving average. The dotted yellow line represents a strong resistance that has been building over the course of this year. Of course, let’s not forget the very round level of $50 a barrel that we are now hovering just below.

A $2 move up would mean a breakout of all three key figures. A $2 move in the other direction would mean that they’re holding strong.

Bitcash Down

All that money that seemingly came out of thin air to pump up the value of Bitcash is now being fed right into Bitcoin.

Bitcash has fallen from its peak of $12 Billion all the way down below $4 Billion this morning.

During the same time, the market cap of Bitcoin was $44 Billion, and it is now up above $53 Billion.

Bitcash sought to replace the original form of digital money but the miners never embraced it. As it was seen by many as something for nothing, many users are now dumping.

This hard fork that came out of nowhere threw a monkey wrench into the bitcoin scaling debate. However, that debate is still playing out and it seems we’re finally reaching a consensus. SegWit is now almost certain to be implemented shortly and miners are showing overwhelming support for the SegWit2x solution.

So, within the next few months, we will likely get another hard fork. This one with overwhelming support from the Bitcoin community.

Let’s have an awesome week ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Featured image from Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 122 rated postsSenior Market Analyst at Etoro.com.




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2 Comments

2 Comments

  1. embersburnbrightly

    August 7, 2017 at 3:46 pm

    That disparity between US stock values and US dollar values is quite scary, especially since I’m a resident of the US. What happens to the US dollar when an overvalued stock market suddenly crashes? Nothing good for those who use that currency for their nation’s economy.

    “Make America Broke Again.”

    🙁

  2. fadishop

    August 7, 2017 at 4:39 pm

    About Bitcash. It is an opinion of a market trader, a Bitcoin fascist, who is bought in Bitcoin, does not accept discrepancies and can not see that the Bitcoin transfers do not work and that Bitcash does not have support but it is a solution at the moment. It does not matter how important it is to have a market, to be bought and to find the trend.
      I have been a miner and I understand that they ask for more rewards, the exchanges ask for more commissions but when they make the transfers they ask for $ 4 and they only pay $ 0.5 on the network. Bitcoin continues with the same problems.

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Altcoins

Cryptocurrency Rally Stalls as Bitcoin Price Hits Resistance

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Cryptocurrency prices were down across the board on Saturday, with bitcoin – the market’s biggest bellwether – stalling near a key  resistance.

Market Update

After reaching a high of $225.6 billion on Friday, the total cryptocurrency market capitalization has fallen back to $211.3 billion, according to CoinMarketCap. The broad pullback was accompanied by only a minor dip in trading volumes, a sign that profit-taking was a factor.

Six of the top-ten coins (excluding Tether) had reported declines at the start of the weekend. Bitcoin was down 3.5% to trade at $6,355.00 on Bitfinex. The leading digital currency reached a high of $6,619, which is just shy of the most recent peak. Bitcoin’s market still exhibits strong trading volumes, with 24-hour turnover at $4.3 billion.

Among the major altcoins, Ethereum, Stellar Lumens, Litecoin and Cardano had each declined between 1.2% and 3.5%. On the opposite side of the spectrum, XRP, bitcoin cash and EOS had reported gains of at least 1.6%.

Bitcoin’s dominance rate, or the percentage of the total cryptocurrency market cap held in BTC, was 52%. Bitcoin accounted for as much as 54.5% of the total market capitalization earlier this week.

Dollar Factor?

The recent meltdown in cryptocurrencies originated 11 days ago when the U.S. Securities and Exchange Commission (SEC) announced it would delay a ruling on a highly anticipated bitcoin exchange-traded fund (ETF). However, analysts have struggled to explain the extent of the selloff – namely, the $35 billion plunge between Aug. 10-13.

According to eToro analyst and Hacked contributor Mati Greenspan, a surging U.S. dollar may have contributed to the decline. As CCN reports, the cryptocurrency market’s movements this week have been highly correlated with fluctuations in emerging-market currencies. Emerging-market exchange rates have been rocked by contagion fears emanating from Turkey’s political crisis, which have boosted demand for the U.S. dollar. As Hacked reported Friday, the U.S. dollar index recent hit more than one-year highs.

“As the United States moves to tighten its economy and avoid strong inflation, they’re taking action that is strengthening the Dollar. Because the US Dollar is the global reserve currency, many smaller economies rely heavily on a stable exchange rate with the greenback,” Greenspan wrote. “So too, as the Dollar is being seen as a stable store of value at the moment, there really isn’t much incentive for people to store their money in digital assets.”

Bitcoin is generally viewed as a non-correlated asset, which means it enjoys unique price independence when comparted with traditional markets. Correlation, when it does occur, is often driven by the erroneous belief that bitcoin is associated with the broader market. This was observed earlier this year when bitcoin seemingly fell in lockstep with the U.S. stock market.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 551 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Cryptocurrencies

2018 Crypto Exchange Trading Revenue Poised to Double to $4 Billion: Bernstein

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For the most part, the cryptocurrency markets have been operating on all cylinders year-to-date with the exception of one very important metric — price. And now that the bitcoin price appears to have found its footing, today’s slip to $6,410 notwithstanding, that component of the market appears to be cooperating, too. Wall Street research firm Bernstein is acknowledging the industry’s impact, predicting that cryptocurrency exchange revenue may grow more than twofold versus year-ago levels to some $4 billion.

The Bernstein report, as cited in Bloomberg, is entitled: “Crypto Trading — The Next Big Thing Is Here?” The title alone reflects a more open-minded if not sanguine take on the cryptocurrency market, more specifically speculative trading. Last year, leading crypto exchanges generated $1.8 billion in transaction fees, which according to the Sanford analysts is 8% of what Wall Street exchanges made. Based on this metric of transaction fees, cryptocurrency trading was second only to global cash equities.

Courtesy: Bloomberg

The outlook may seem shocking, considering that the bitcoin price is down more than 60% from last year’s peak. But leading cryptocurrency exchange by trading volume Binance, which boasts millions of users, tipped its hand to balance sheet strength. The exchange’s CEO CZ recently provided an outlook, saying the company was on track to deliver record profits this year of as much as $1 billion, as CCN previously reported.  On the low end of its range, Binance is looking at $500 million.

Advantage Goes to Coinbase

Meanwhile, Bernstein analysts are quick to point out that Wall Street banks have largely been on the sidelines of crypto, Goldman Sachs and JPMorgan’s crypto trading and blockchain investments notwithstanding. As a result, the could find themselves in an unusual competitive position where crypto exchanges like Coinbase dominate market share. Coinbase already boasts some “50% of the transaction revenue pool,” according to Bloomberg, and fears of fraud coupled with a murky regulatory climate hold the big banks at bay.

“As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms,” according to Bernstein analysts, who then pointed to examples across custody, portfolio management and making markets, for instance.

Indeed, the persistent downturn in the cryptocurrency market, particularly in the bitcoin price, has had observers wondering how crypto exchanges could offset the damage. After all, they generate revenue based on trading volume.

Exchanges like Coinbase have been adding coins, most recently Ethereum Classic (ETC) but they’ve got several more altcoins waiting in the wings that they’re looking to support. While Coinbase officials have stated that these new altcoin additions are in response to trader demand, it’s also a way for them to continue to collect trading revenues while the bitcoin price has been stalled. Binance, meanwhile, whose trading volume hovers at approximately $1.4 billion in the last 24 hours, supports hundreds of altcoins.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 39 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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Altcoins

Encrypgen Beta Launch Sends Token Soaring

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Encrypgen (DNA) provides customers and partners best-in-class, next generation, blockchain security for protecting, sharing and re-marketing genomic data. Although the company has only been around for a few years, it appears to be a major player in the genomic blockchain security space. Security breaches at Ancestry.com and privacy concerns at 23andMe have created a void that Encrypgen hopes to fill.

Price Action

Earlier this week, Encrypgen reached a significant milestone after launching its Gene-Chain beta platform. DNA token is soaring by 20% since the announcement on Wednesday evening.

Encrypgen Price Chart

Encrypgen is far ahead of schedule since the initial expectation was the end of August. The company expects the final live version of the Gene-Chain to be available by the end of September. DNA is a utility token so platform usage will determine its value. DNA is inching its way closer to the finish line and traders appear to be backing it.

Since August 1, DNA is one of the best performing ERC20 tokens. I created a list of the top 50 ERC20 tokens and analyzed their returns since August 1. None of them have a positive return. In comparison, DNA has generated a 7% return during the same period. While the return is negligible compared to the fall 2017, it’s still a positive development. Especially since the price rise coincides with a major development milestone.

Encrypgen Value Proposition

Genetics is playing an increasingly pivotal role in the world of drug discovery. Researchers use genetic data to help them understand how diseases start and how they progress. One of the main reasons that Encrypgen caught my attention is that it is attempting to fill a real world void as a few of the largest non-crypto companies are facing serious issues. Two of those companies are Ancestry.com and 23andMe.

Ancestry.com is the most popular genealogical and family tree tracking company. Unfortunately, it appears that popularity comes at a cost. In December, a server on the company’s RootsWeb service exposed a file that has usernames, email addresses and passwords of 300,000 registered users. The stolen information was then leaked and posted online in plain text.

Another popular company in the industry, 23andMe, has its own issues regarding privacy. Lawmakers and consumers are expressing concern regarding privacy after a consumer submits their genetic test to the company. This is especially true in light of the recent $300 million collaboration deal that GlaxoSmithKline (GSK) struck with 23andMe.

Encrypgen’s Gene-Chain platform appears to be the answer to the problem. Consumers will be able to upload their genetic data via Encrypgen’s secure portal which then goes into the company’s database. That data will then be secured with the company’s Gene-Chain. One of the most interesting parts is that consumers get paid when researchers want to purchase their data. According to a recent article from Reuters, consumers can expect an average payment of $130 each time that researchers buy their data. This is an excellent way for consumers to generate passive income.

Conclusion

Investors need to keep their eyes on Encrypgen as the company finalizes its Gene-Chain platform. With the recent price action, the coming catalysts, and the compelling value proposition, the DNA token may be one to begin accumulating.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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