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Asian Market Update – Wednesday: Bitcoin cash skyrockets as GDAX adds support; Asian stocks muted amid tax bill vote

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Rocket

The Big Question: What’s happening to the price of bitcoin cash on GDAX?

The biggest news in the world of crypto today is the surge in bitcoin cash, which has been overshadowed by bitcoin since the showdown between the two in early November. Wednesday morning in Hong Kong, bitcoin cash was up more than 20 percent to all fresh all-time high on Bitfinex, while prices of other major cryptocurrencies stumbled.

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At midday, bitcoin cash was still up 15 percent for the day to $3,212 on Bitfinex. The virtual currency surged more than 60 percent to an all-time high of $3,676 before falling about 20 percent later.

The surge in bitcoin cash price on Wednesday came after Coinbase and their GDAX exchange, announced on Tuesday that traders could buy and sell bitcoin cash on its platform. The price of bitcoin cash on GDAX then spiked to almost insane levels shortly after it was added, far above the market price on other exchanges. GDAX then halted all trading in the virtual currency after only 4 minutes of trading, with the last recorded transaction coming in at $9,500.

For the other main cryptocurrencies, things did not look so good Wednesday morning.

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Litecoin saw the biggest loss on Wednesday morning, trading down by 5.06 percent to $332 on Conbase. Litecoin is now down for the second straight day after losing about 2.7 percent on Tuesday.

Bitcoin also took big hit on Wednesday morning, losing bout 4 percent to $17,000 as of midday and extending a three-day losing streak. Since Sunday, bitcoin has tumbled about 12.8 percent.

Ethereum was also down by almost 4 percent to $796 at midday after four positive days in a row. Prior to Wednesday morning’s loss, ethereum was up nearly 20 percent since the weekend.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 22,853 -0.06%
China-Shanghai Composite Index 3,296 0.01%
Hong Kong –Hang Seng 29,252 0.04%
South Korea-KOSPI 2,478 -0.13%
Australia-ASX 200 6,072 0.01%
S&P 500 E-Mini Futures 2,690 0.20%

Asian equities were muted on Wednesday morning, as investors closely watched developments in the US Congress on one of the largest tax code overhauls in US history.

As of midday Wednesday, equities on the Chinese mainland, Hong Kong and Australia were marginally higher, while stocks in Japan and South Korea were down slightly.

On the Chinese mainland, the Shanghai Composite Index edged up 0.01 percent at midday to 3,296. In Hong Kong, the Hang Seng Index moved up 0.04 percent to 29,252 at midday.

Down under, the ASX 200 was 0.01 percent higher to 6,072 at midday.

The S&P 500 E-Mini Futures was up 0.20 percent to 2,690.

In Japan, the Nikkei 225 Index was off a slight 0.06 percent to 22,853 at midday.

In South Korea, the Kospi was down 0.13 percent to 2,478 at midday.

Investors in Asia Pacific and across the globe are keeping their eyes on the US Congress for a sweeping tax reform bill that have boosted stocks to all-time highs this year. The House Representatives passed the bill on Tuesday afternoon, but it still needs another vote. So far, the market’s expectation is that Congress will pass the bill and have it signed by Trump before Christmas.

Currencies

The Japanese yen was down 0.05 percent against the US dollar at midday Wednesday, changing hands at 112.94 per dollar.

The Chinese yuan firmed 0.10 percent against the US dollar at 6.6969 per dollar.

The Australian dollar was also down 0.02 percent on the dollar, changing hands at 1.3052 per dollar at midday.

Commodities

WTI Oil was up 0.14 percent to $57.72 per barrel at midday on Wednesday.

Brent Crude edged up 0.13 percent to $63.89 per barrel.

Gold gained 0.20 percent to $1,263 an ounce.

News across Asia

In China, concerns have been raised that the country’s largest e-commerce giant could form a monopoly in both online and offline consumer markets. The trigger is that Alibaba and Tencent have acquired new e-commerce companies and invested heavily in a wide range of other sectors including physical stores, insurance, auto and so on.

Take away: So far Chinese regulators have been mum on M&A deals involving these e-commerce giants, but with increasing worries over anti-trust issues, things could turn for them.

In South Korea, travel agencies there have renewed their protest that the Chinese government has banned travel groups to visit South Korea because of political tensions between China and South Korea. Bilateral ties soured last year after South Korea allowed the US to deploy the THAAD missile defense system.

Take away: Chances are these restrictions will be removed sooner rather than later, as China has conceded on the THAAD issue and reluctantly accepted that the THAAD system will not go away anytime soon, given the current tensions on the peninsula.

Featured image from Pixabay.

Disclaimer: The author owns bitcoin, ethereum and litecoin. He holds investment positions in the coins, but does not engage in short-term trading.

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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4.3 stars on average, based on 33 rated postsFredrik Vold is an entrepreneur, financial writer, and technical analysis enthusiast. He has been working and traveling in Asia for several years, and is currently based out of Beijing, China. He closely follows stocks, forex and cryptocurrencies, and is always looking for the next great alternative investment opportunity.




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Market Overview

Market Update: Stocks Slide as U.S.-China Trade War Risks Reemerge

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U.S. stocks declined Friday, with the Dow briefly falling more than 200 points after the Trump administration moved ahead with planned duties on Chinese goods, reigniting fears of a global trade war.

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Stock-Rally Falters

Risks of an all-out trade war dragged equity prices lower, with all of Wall Street’s major indexes posting declines. The Dow Jones Industrial Average fell 84.83 points, or 0.3%, to 25,090.48 with the likes of Caterpillar Inc. (CAT), and Chevron Corp (CVX) leading the declines.

The broader S&P 500 Index fell 0.1% to 2,779.42, with the majority of its primary sectors booking losses. Industries tied to primary goods were among the biggest decliners.

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The Nasdaq Composite Index fell from record levels, declining 0.2% to 7,746.38.

Implied volatility, as measured by the CBOE VIX, rose briefly on Friday before reversing gaind later in the session. The VIX fear index settled below 12 on a scale of 1-100 where 20 represents the historic average.

Trump Announces Tariffs

The Trump administration is moving forward with a plan to tax up to $50 billion in Chinese goods, sending a strong signal to Beijing that it will no longer tolerate theft of intellectual property.

A charge of 25% will be applied to Chinese goods that “contain industrially significant technologies,” President Trump announced Friday. The measures come “in light of China’s theft of intellectual property and its other unfair trade practices.”

Beijing responded swiftly by announcing it will implement import duties on the same scale as Washington. Neither country commented on the products that will be impacted.

China’s response was expected by President Trump, who said he would impose more tariffs if Beijing retaliates. Currently, the U.S. purchases far more from China than the other way around, which gives Washington some leeway in its tariff policy.

Investors are generally averse to any sign of protectionism in global markets, but this hasn’t stopped the Trump administration from recalling several of its current trade regimes in an effort to trim Washington’s deficit. Last  month, President Trump confirmed that Canada, Mexico and the European Union would be subject to import duties on steel and aluminum products.

Cryptocurrencies Stabilize After Tumultuous Week

The global cryptocurrency market stabilized Friday, as bitcoin rebounded from oversold levels and altcoins led by EOS reported gains.

All cryptocurrencies in circulation are collectively valued at $282.5 billion, according to CoinMarketCap. The market bottomed near $264 billion on Wednesday.

A top U.S. regulator delivered good news for cryptocurrency traders when he declared Ethereum not to be a security. Speaking at the Yahoo All Markets Summit event in San Francisco Thursday, SEC director William Hinman said Ethereum is too decentralized to be a security, which means it is in the same category as bitcoin.

The SEC has yet to issue a formal decree on Ethereum and it is not entirely clear whether a federal judge will agree with Hinman’s assertion. Advocates for Ethereum have rejoiced nevertheless given the ongoing debate over ether’s possible security status.

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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4.5 stars on average, based on 453 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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Analysis

Stocks Pull Back as Euro Rebounds after Carnage

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Stocks are broadly lower today after yesterday’s mixed session, as European equities, which performed much better following the ECB’s meeting, also turned lower, following the major US indices. The losses are limited, as volatility remained relatively low, despite the week’s central bank bonanza that caused turmoil across asset classes.

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NASDAQ, 4-Hour Chart Analysis

The NASDAQ is still the strongest among the main benchmarks, while the Dow is the weakest, dragged lower by the weakness in financials and the energy segment. Small caps are still outperforming the broader indices together with tech stocks, and Trump’s new tariffs targeted at China boosted the segment yet again today.

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EUR/USD, 4-Hour Chart Analysis

The EUR/USD forex pair has been in the center of attention in the last couple of days as expected, while currencies turned volatile across the board in the aftermath of the Fed’s and the ECB’s monetary meetings. The Dollar index surged higher, boosted by the weakness of the common currency and after a brief positive period that weighed somewhat on stocks and other risk assets.

Economic releases were mixed today after a strong weak, at least in the US, as the Empire State Index and the UOM Consumer Sentiment Index were better than expected while Industrial Production slightly missed the consensus estimate. The Eurozone CPI was in line with expectations, while Canadian Manufacturing Production missed by a mile, putting further pressure on the already weak Canadian Dollar.

Commodities Smacked Lower amid Risk-Off Shift

Currencies were by far the most active assets, as we expected after the dovish surprise by the ECB yesterday, with the Dollar’s strength affecting the majors and the recently weak emerging market currencies as well.

USD/TRY, 4-Hour Chart Analysis

The initial bullish reaction in commodities and emerging currencies quickly faded, as the fragility of the most vulnerable countries continues to pose contagion risk, and although the Brazilian Real and the Turkish Lira are both above their recent lows, the charts still look dangerous.

WTI Crude Oil, 4-Hour Chart Analysis

The Dollar’s strength put an end to oil’s bounce, as the WTI contract fell back below the $65 per barrel level, while gold is also testing its lows from May. Oil looks bearish before next week’s OPEC meeting, but the outcome of the event is as hard to predict as ever, especially given the recent volatility in the price of the Black Gold.

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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Market Overview

Draghi Scores & Cryptos Celebrate

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Hi Everyone,

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Finally some much-needed clarity!

Just when some feared all was lost and crypto prices were showing signs of a potential plunge, some exciting news was delivered from the SEC in the United States, bringing with it the kind of optimism that we haven’t seen in months.

The crypto markets are now celebrating and have given a strong push off the lows.

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It seems the title of yesterday’s daily market update “A Crypto U-turn” was more appropriate than originally intended.

Let’s examine the impact of the SEC’s decision below.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Draghi Scores a Goal
  • Tiki-taka Stocks
  • Ethereum Uncertainty Removed

Please note: All data, figures & graphs are valid as of June 15th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

It was a perfect play by the European Central Bank. They’ve been worrying for months about the strength of the Euro and finally, at the 90th minute, they managed to pull off a power play that brought the ball all the way to the goal line.

The timing was impeccable. On Wednesday, the ECB’s counterpart in the United States announced a more aggressive monetary policy and plans to raise their interest rates more rapidly than expected.

At the same time, a decision was expected from the ECB to end their “money printing” stimulus package very soon.

During the press conference yesterday, the ECB not only confirmed the market’s expectations by announcing an end to the stimulus as of September but they also surprised everyone by indicating that they will not be raising their interest rates until the summer of 2019.

See, while everyone was concentrating on the striker (stimulus) and expecting him to kick the ball into the goalkeeper’s hands, he actually kicked it to his teammate (interest rates) who nobody was watching.

They haven’t quite won the match just yet though. Looking at the chart of the EURUSD, we can see that they failed to carry the Euro below the critical level of $1.15 and therefore any further downward pressure will be difficult to maintain.

Tiki-taka Stocks

The new policy divergence doesn’t seem to be affecting the stocks too much and with the US trade war expected to be notched up today, it seems they have other things on their mind.

Here’s a graph of the Dow Jones, which has been moving back and forth for most of this year without any real progress. Notice how it’s just taken a turn downward, towards the 50-day moving average (blue line).

Crypto Celebration!!!

The reaction from the crypto market yesterday was one of delayed gratification. In the United States, the authorities have been particularly ambiguous about the legal status of cryptocurrencies over the last few years.

While it was rather clear that Bitcoin itself should not be classified as a “security” the status of coins like Ether and Ripple’s XRP has remained a question. If a token is considered a security, it has some rather extreme implications for any person or business who traded it, including sizable fines and even the possibility of jail time for hodlers.

So, yesterday’s headline was certainly a cause for celebration.

The reaction was quick and clear across the entire crypto industry. Here we can see all of the cryptocurrencies traded on the eToro platform

Even though gravity does seem to be getting the better of the cryptos this morning, the announcement couldn’t have come at a better time. Here we can see the long-term chart of Ethereum and the beautiful bounce off the long-term trend line that the news has caused.

Now that Amecia seemingly has the freedom and security to trade Ether, this paves the way for big institutions like the CBOE and others to add Ethereum futures to their crypto offerings.

Let’s have a fantastic weekend!!

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.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,
Mati Greenspan
Senior Market Analyst

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

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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