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Cherry on Top

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Hi Everybody,

Very glad to announce that we have a new cryptocurrency that is now available for trading on the eToro social trading network…

Please welcome the newest member of the crew… XRP!

This revolutionary new system aims to completely replace the current SWIFT system used by banks for international transfers. A bank to bank transfer these days usually takes between 2 and 5 business days. Ripple, can do it in seconds flat … and at a much cheaper rate too.

Ripple has been one of the hottest and fastest moving cryptocurrencies since the beginning of the year with swings from 0.006 cents per token in January, up to 42 cents in mid-May, and now sitting at 17 cents per token.

This is the magic of crypto and we’re very pleased to offer it for both long term investing and short term trading on our network.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

Apple’s Cherry

Markets Stable

Bitcoin Cash

Please note: All data, figures & graphs are valid as of August 2nd. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Apple shares have placed a cherry on the top of what was already a cream filled day in the financial markets. The Dow Jones industrial average is now just a few points shy of the landmark level of 22,000 points.

Analysts were thinking that the smartphone and tablet giant was in for a terrible quarter ahead of the expected release of their next wave of new tech, which many believe is due in September. Usually, iPhone users tend to hold onto their old and broken devices just a little longer if it means upgrading to a new version.

Not only did they smash those expectations, their share price skyrocketed in after-hours trading and when the markets open today the largest company in the world will be worth an approximate $782 Billion.

Other markets, currencies, and commodities remained relatively stable yesterday as the VIX volatility index once again took a dive.

Crypto World

Everybody is buzzing about Bitcoin Cash and the hard fork that just took place. The smoke is just clearing now but the transition is far from over, or even guaranteed at this point.

So for now, let’s look at what we know. The old Bitcoin network seems to be stable. SegWit is locked in and volumes are looking quite normal. In the past 24 hours approximately $1.3 Billion worth of BTC has exchanged hands, a number which is quite average for the past few months and the market cap of bitcoin is about the same as it’s been since May at about $44.6 Billion.

The new coin, Bitcoin Cash, which some exchanges label as BCC and some as BCH, is now the third largest crypto with a market cap of $7.2 Billion as the coins currently trade at $439 a pop.

Ladies and gentlemen, this is not anything like your average stock split. When the shares in a company split, each investor gets 2 shares for every 1 he holds and the price per share is reduced by 50%.

With this split, the value of the original asset was never reduced. We simply have a new asset with a completely new market cap that seemingly came from nowhere. Meaning, that the combined value of bitcoin and bitcoin cash is now $51.8 Billion, which is well above what bitcoin ever achieved by itself.

Given the growth of this explosive market, it would not be surprising to see either one or both of these assets growing exponentially in value from here. Or to see either one surrender to the other.

We’re in the thick of it now. Have an amazing day 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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4.6 stars on average, based on 134 rated postsSenior Market Analyst at Etoro.com.




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2 Comments

2 Comments

  1. Matt_a

    August 2, 2017 at 9:51 am

    Trading on CFDs on Etoro without having the chance to use leverage makes no sense at all. You better buy the real coin directly and at least you remove the counterparty risk. Beside that..if anyone would be trading these coins using CFDs the price won’t go anywhere given that it is not affecting it in any sort…Etoro removed all the possibility to leverage so don’t waste your time with it and buy the real coin

  2. Mati Greenspan

    August 2, 2017 at 11:04 am

    Hi Matt,

    Thanks for the honest feedback. It’s highly appreciated. To address the issue of CFDs. eToro is indeed backing our positions by placing an order on the underlying asset, such that the volumes in eToro do indeed impact the market just as they would on any of the exchange sites.

    In addition, trading as a CFD provides you as the customer with an additional layer of liquidity as we guarantee the same price for large orders as we do for small ones as well as instant execution at the price you see on your screen. Such that you don’t need to look for a counterparty to the trade.

    The last point is that eToro unlike many other places to buy cryptos direct is a regulated financial institution. A CFD (contract for difference) is a contract which is legally binding and has ramifications much greater than an irreversible transfer from one digital wallet to another.

    Feel free to reach me on the world’s best social investment network any time with any further questions, comments, or concerns.

    -Mati Greenspan

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Commodities

WTI Falls Below $59 a Barrel for the First Time in Eight Months; U.S. Set to Dominate Energy Market By 2025, Says EIA

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The oil-price collapse became a record fallout on Tuesday, as U.S. crude futures headed for their longest losing streak ever. In the process, the futures contract dipped below $59.00 a barrel for the first time since February and is now trading at its lowest level since last year.

Oil Prices Sink Further into Bear Territory

U.S. West Texas Intermediate (WTI) futures fell by as much as 2.8% on Tuesday, extending their losing streak to a record 12 days. At the time of writing, WTI was trading down $1.38, or 2.3%, at $58.55 a barrel on the New York Mercantile Exchange. Brent’s decline was equally perilous, with the global benchmark falling $1.60, or 2.3%, to $68.52 a barrel.

Oil prices have lost a swift 23% since Oct 3, when markets were pushing toward multi-year highs. The rout intensified this week after U.S. President Donald Trump criticized Saudi Arabia’s plan to lower production amid the selloff.

The Saudis announced Monday they would scale back output by 500,000 to bring supply back in line with demand. Saudi energy minister Khalid Al-Falih said output cuts of 1 million barrels per day are needed to re-balance the market. This suggests fellow OPEC members are likely to join efforts to reduce output in support of higher prices.

U.S. Set to Dominate Energy Market

America’s reliance on Saudi oil is quickly fading as domestic shale production achieves new economies of scale. According to a new report by the International Energy Agency (IEA), the United States will produce half the world’s oil and gas supply by 2025.

In its annual World Energy Outlook report, the agency said the U.S. will account for roughly 75% of global gas growth over the next six years. It will also account for 40% of the growth in natural gas. At the same time, U.S. shale production is forecast to more than double to 9.2 million barrels per day.

“The shale revolution continues to shake up oil and gas supply, enabling the U.S. to pull away from the rest of the field as the world’s largest oil and gas producer,” the IEA said in its report. “By 2025, nearly every fifth barrel of oil and every fourth cubic meter of gas in the world come from the United States.”

The upsurge in U.S. shale production has eroded OPEC’s dominance of the international energy market. This was most evidently on display in 2014 when a systemic price collapse forced the Saudi-led cartel to adopt new production policies. While the cartel has succeeded in bringing prices above the break-even rate for Middle East producers, it has failed to deter lean shale producers that are capable of generating profits even with the latest drop in prices. This new reality is expected to play out further over the next six years.

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 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Commodities

Oil Prices Erase Recent Gain as Trump Blasts Saudi Production Policy

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Crude oil suffered a fresh setback early Tuesday, as markets reacted to further fraying of U.S.-Saudi relations after President Donald Trump slammed the kingdom’s energy policy. Hours earlier, Saudi Arabia had announced it would cut crude production by 500,000 barrels per day in December in response to the recent plunge in prices.

Oil Prices Erase Gains

U.S. West Texas Intermediate (WTI) futures plunged to yearly lows on Tuesday, more than offsetting yesterday’s climb. The U.S. futures benchmark bottomed at $58.85 a barrel. It was last seen trading at $59.00 a barrel, down 93 cents, or 1.6%, from the previous close.

The WTI contract officially entered into bear-market territory earlier this month with losses exceeding 20% over the past six weeks. At the beginning of October, crude was tracking four-year highs. Now, prices are struggling to stave off further declines.

Declining crude prices follow a fresh surge in the U.S. dollar, which is currently tracking 16-month highs against a basket of its peers. The DXY dollar basket spiked 0.7% on Monday to 97.54. As a dollar-denominated asset, crude is highly sensitive to changes in the greenback’s value.

Trump Blasts Saudi Oil Policy

Saudi Arabia’s decision to scale back crude production has been met with heavy criticism by U.S. President Donald Trump. In a Monday afternoon tweet, Trump said the following:

“Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!”

The president’s comments came after the Saudis announced plans to lower crude supply by half a million barrels per day beginning next month. The decision was announced by Saudi energy minister Khalid Al Falih in Abu Dhabi following a meeting of OPEC members.

“The consensus among all members is that we need to do whatever it takes to balance the market,” Al Falih said, as quoted by CNN. “If that means trimming supply by a million [barrels per day], we will do it.”

President Trump is under pressure to keep the economy running strong following sizable losses in the House of Representatives during last week’s midterm election. Although the GOP under Trump performed much better than previous administrations, the loss of a House majority threatens to undermine the administration’s goals.

Washington was relying on Saudi Arabia to keep the global market well supplied, and oil prices down, in the wake of renewed sanctions on Iran. U.S.-Saudi relations have also deteriorated over the killing of journalist Jamal Khashoggi at the Saudi consulate in Turkey last month.

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 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Commodities

Oil Prices Officially Enter Bear Market

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Crude oil extended its slide on Thursday, with the U.S. futures benchmark encroaching into bear-market territory following weeks of relentless declines.

WTI Succumbs to the Bears

Crude futures were down across the board in the latter half of the week, as concerns over rising stockpiles and higher production continued to grip the market. The West Texas Intermediate (WTI) contract for U.S. crude reached a low of $60.67 a barrel on the New York Mercantile Exchange. It was last down 24 cents, or 0.4%, a $61.43 a barrel. Brent crude declined 28 cents, or 0.4%, to $71.80 a barrel on London’s ICE futures exchange.

WTI has officially entered bear market territory, which is defined as a fall of 20% or more from a recent high. The 20% threshold was met on Thursday as prices resumed their relentless drop from four-year highs set on Oct. 3. Market sentiment has shifted dramatically over that stretch, with investors now fearful that Saudi Arabia and Russia will more than offset a loss of Iranian exports following the resumption of U.S. sanctions against Tehran.

Higher Production on the Horizon

Russia and the Saudis aren’t the only players expected to ramp up production in the near future. The U.S. Energy Information Administration (EIA) recently upped its outlook on domestic crude production, calling for 12.1 million barrels per day in 2019 compared with a previous estimate of 10.9 million barrels per day.
EIA data on Wednesday showed a sharp rise in weekly crude inventories, placing further pressure on oil prices. Commercial stockpiles surged by 5.8 million barrels in the week ended Nov. 2, bringing the total inventory to 432 million barrels. That’s the highest since early June.

Meanwhile, members of the Organization of the Petroleum Exporting Countries (OPEC) are expected to meet this weekend to go over market fundamentals and determine whether additional supply cuts are warranted. Analysts at Commerzbank believe the cartel may have no choice but to scale back output to re-balance the market. The Saudi-led production group will meet in Abu Dhabi on Sunday.

In other news, October was another record-setting month for Chinese crude imports as the world’s second-largest economy stocked up on Iranian barrels before U.S. sanctions took effect. China imported an average of 9.6 million barrels per day last month, government data showed on Thursday.

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 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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