Captains, Chancellors & Presidents

Hi Everyone,

Seems like several crypto news sites are already running with the story that…

While I applaud the few news sites that made the distinction in their headlines, it seems that far too many authors are still willing to run stories with inaccuracies.

The tweet that’s been pointed to in many of these articles is as follows…

This is less than news though. It is the second case in which Chinese courts have judged that a crytpoasset is considered personal property and protected by law. This means that you’re not allowed to steal it and in case of any dispute, the usual laws of ownership apply.

However, this is a far cry from saying that cryptoassets are a fully legal payment method. Though I’m glad to hear that there’s an Ethereum Hotel in Sichuan province, it does seem that it’s only very small businesses, that in my view have nothing to lose, who are ready to take the plunge. Large retailers in China will not consider beginning to accept it until actual legal status is obtained.

So, we’ll all have a party whenever that happens.

@MatiGreenspan
eToro, Senior Market Analyst

Please note that there will be no daily market update due to local elections. We will resume on Wednesday, October 31st.

Today’s Highlights

  • Captain President
  • Stocks are Up
  • Cryptos are Flat

Please note: All data, figures & graphs are valid as of October 29th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Former army captain Jair Bolsonaro is now the elected President of Brazil. Images are flooding in of extraordinary celebrations, many involving the military and firearms. Though some criticise his staunch right-wing ideology, the stock markets seem pretty happy.

Here we can see the Brazilian iShares ETF IBZL.L opening up with a wide gap skyward this morning.

It’s interesting to know if this massive rally in Brazil is what’s fuelling the recovery in the rest of the stock markets this morning.

Just about all the stock markets are rallying hard today, except for China, which just now seems to be pricing in October’s sell-off.

The bottom two graphs are the most notable of the bunch. Breaking news has put the German government in question…

Over in the UK, Chancellor Philip Hammond is about to deliver an annual budget that might not make it through Brexit.

Word is that the impact on the Pound sterling might be muted as well and most GBP investors are looking forward to Thursday’s BoE meeting.

Cryptos Still Flat

If the current flat price action continues, we might need to consider covering cryptos on a weekly basis again. Something we haven’t done in these updates since 2016. Over the last 24 hours, not a single cryptoasset trading on eToro has moved more than 1%.

It’s now been exactly two weeks that bitcoin has been trading completely flat…

However, there’s still reason to believe that the breakout we’ve been waiting for may be getting closer rather than further away. A quick look at blockchain’s data confirms that Bitcoin is getting busier lately.

Transactions per second are now near their highest levels since January…

Let’s have an amazing 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.

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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