Captain Crypto

Hi Everyone,

If you’re reading this then you probably have recognized by now that cryptoassets have value. The question needs to evolve into what value should each specific coin have?

The ultimate answer is “whatever someone is willing to pay for it.” However, in traditional markets, we have hundreds of years of analytical methods to determine value, something which has yet to emerge in this nascent industry.

To that end, I’d like to get the discussion started by sharing this simple video with you, where I discuss some of the basic concepts for evaluating cryptos.

Please watch now

Of course, all comments, questions, and insights are welcome so please feel free to reach out at any time.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • What the Fed Said (or didn’t)
  • Dollar Surge
  • Aye Aye Captain!

Please note: All data, figures & graphs are valid as of November 9th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

As expected, the Fed meeting last night was pretty vanilla. The statement released by the FOMC was very similar to the statement they handed down in August. There were only very minor changes to the text.

An email I received this morning from Bloomberg’s John Authers had an interesting take on this and pointed out that it’s not what the Fed said but what they didn’t say that’s interesting.

Here’s a list of omissions…

Of course, John’s point isn’t to criticize the Fed or not pointing out the obvious. His point is that by not mentioning these things the Fed is signalling that they’re not about to be intimidated by the markets at this time.

That’s not to say they won’t step in later, but at least for now, they’re likely to continue their pace of rate rises and monetary tightening.

How did the Markets React?

As one would expect, the prospect of the Fed continuing to raise their rates had an immediate effect on the US Dollar.

The surge is apparent even when we zoom out to the more long-term charts.

The stocks and bonds also took the Fed’s statement as a sign of tightening to come and we could notice modest declines in the major indices, especially in the Nasdaq which has been showing signs of weakness before investors were sidetracked by the mid-term.

Markets in Asia and Europe are continuing the negative sentiment this morning but there’s no noticeable flight to safety at this point.

Let’s keep our eyes open though.

Captain Crypto!

Normally, I wouldn’t cover Trump replacing the Attorney General, certainly, if we’d cover everyone who has left the White House, we’d have little room to talk about anything else.

What’s noticeable here is that the new Attorney General Matt Whitaker seems to have an interest in Bitcoin. The dates on these two tweets are a clear indication that the Attorney General has at least been familiar with digital assets from early on.

The two articles linked to can be found here and here. Of course, the media is more concerned about what Whitaker’s appointment might mean for the Muller investigations into Donald Trump.

On a separate note, someone else who has recently emerged as a thought leader in the crypto space is none other than Captain James T Kirk. Or, at least the actor who played Kirk, William Shatner, who has been tearing it up on Twitter lately and engaging directly with the crypto community.

Here you can see cases where Bill is defending the Ethereum project from FUDsters, and here’s one that he tweeted to me directly. 🙂

The tweet that Bill refers to as the “cyber snob tweet” is actually from 2014, not 2013 but who am I to argue with the Captain of the Enterprise.

Many thanks to everyone reading and a merry welcome to another 15,000 eToro gold clients who are now receiving the daily market updates by Email.

Please always feel free to reach me on Twitter, LinkedIn, or on the eToro social trading platform.

Have a fun weekend!

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

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

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

eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

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