Connect with us

Market Overview

Decentralize

Published

on

There’s a fine line between celebrity and politician as we’ve seen clearly with the election of reality TV star Donald Trump.

// -- Discuss and ask questions in our community on Workplace.

Now it seems that famous rapper Kanye West is taking a more proactive stance on politics and has recently had several very public interactions with President Trump on Twitter.

But it’s not just politics. Kanye’s Twitter account has a total of 220 tweets yet it seems that most of them have been posted in the last 48 hours. One of those tweets was a single word. A buzzword in the crypto-community that had a lot of blockchain enthusiasts excited.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Not that Bitcoin needs the Yeezy’s endorsement but I don’t think it hurts.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Draghi Day
  • DB Big Miss
  • Ether Chain Split?

Please note: All data, figures & graphs are valid as of April 26th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Stock markets are rather quiet today as we await the announcement from Mario Draghi and the European Central Bank (ECB).

The ECB is currently injecting about €30 Billion of stimulus into the economy each month. Though this is far less than they were doing at the peak of global QE a few years ago the feeling is that they’ll need to reduce it further going forward.

The issue is that despite the massive amount of stimulus the Eurozone has been showing signs of weakness.

Of course, it would be very difficult for any central banker to admit that their respective economies are slowing down. So even though nobody expects any concrete changes to the ECB’s monetary policy, investors today will be watching like vultures.

Here we can see that the Euro has been gaining strength against the USD ever since the French elections in April. After running into some resistance at 1.25 it now seems that this strong trend is under question.

Earnings Continue

Yesterday’s announcements on Wall Street weren’t too bad. Facebook managed to defy the calls of #DeleteFacebook and has even managed to gain new users, and even Twitter managed to put up a profitable quarter for the second time in history.

Over to Europe, things are not looking so hot in the financial sector. Barclays faced a quarterly loss of £764 million but the big news rocking the markets today is that Deutsche Bank, which was expected to announce a Q1 profit of €376 Million, disappointed investors with profits of only €120 Million.

Even though this is a massive miss, it might not be as bad as some think. You’ll recall that DB recently switched CEOs right at the beginning of Q2, so there is a clear scapegoat here.

The new CEO Christian Sewing seems to be treating the below-expected earnings as an opportunity rather than a setback and has announced some massive reforms that he feels can improve the bank’s profitability.

At the moment, DB has more than 100,000 employees in 70 countries. From today, many of those outside of Germany will expect to receive notice as DB consolidates its business to try and focus on its core market.

Sewing was brought in to be the gunman when Crayn simply couldn’t pull the trigger. Now it seems that a lot of people are about to get fired.

Will Ethereum Split?

Though the DNS hack yesterday was shocking the damage was rather contained. Ethereum enthusiasts have a much bigger concern on their minds at the moment, the aftermath of the last major Ether hack.

We discussed the Parity hack that froze about 514,000 ETH in a previous market update titled Security & Stability (dated November 8th, 2017). Now the owners of those tokens are doing whatever they can to try and get them back.

Ethereum Improvement Proposal EIP-999 proposes that the upcoming hard fork that is planned to move Ethereum to the Casper protocol will also be used to release the frozen tokens from the Parity hack.

After a week-long vicious vote, the results are in and it seems Parity is out.

In the wake of this narrow yet clear vote not to go ahead with EIP-999 it seems that some of the top developers plan to go forward anyway.

True to character, Vitalik Buterin has been notably silent on this issue. He generally prefers to allow the community to come to some sort of decentralized resolution without the aid of his authority.

Mind you, even if we do see a chain split it might not have a negative effect on the price of Ethereum. There is a distinct possibility that we could see a new coin created that is different from the original like we did with Ethereum Classic and Bitcoin Cash, both of which seem to have generated wealth for token holders.

Let’s 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.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 5 (3 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 86 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Market Overview

Satisfaction & Exploitation

Published

on

Hi Everybody,

// -- Discuss and ask questions in our community on Workplace.

In the dark hours of the night, the cryptocurrency known as Verge fell victim to another major hack. Shortly after Verge had been assessed by the People’s Bank of China as being on the same level as Bitcoin.

This incident is a perfect example of how even the most gorgeous looking piece of tech can be vulnerable if its assets are underutilized. In other words, the network effect is only useful if the network is popular. If the audience is simply not attracted the network itself becomes vulnerable.

The user that reported the whole affair, apparently the same person who reported it last time Verge was hacked, submitted this image to show what the hacker had done.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Now, I don’t understand any of this code, but what happened here is quite clear. Basically, this guy just had his way with a network by exploiting the fact that it was going unused and now the evidence is everywhere.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Unsatisfied President
  • Evasive Founder
  • Some Dry Crypto Updates

Please note: All data, figures & graphs are valid as of May 23rd. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The whole “trade war is on hold” narrative didn’t seem to last very long at all. Yesterday, President Donald Trump expressed that he is not satisfied with the way things are going there, indicating that this whole saga is far from over.

In addition, Trump cast further doubt that the planned meeting with Kim Jong Un in Singapore June 12th will go forward.

Stocks didn’t like these updates one bit and major indices around the world are in deep red.

What seems to me, the more defiant Trump gets the stronger the Dollar gets. The US Dollar is gaining against most of the major currencies in what we can see as a clear flight to safety in the FX market.

That big 1% green spike in the Japanese Yen is not normal and is a clear indication that Asian investors are searching for a safe haven.

This evening at 19:00 GMT, we’ll receive the minutes from the Fed’s last meeting and crude oil inventories coming out at 15:30 are forecasted to show 2.5 million fewer barrels of oil in the United States.

In Your Facebook

Mark Zuckerberg’s trip to Europe most likely didn’t go as well as he’d hoped. Whether you heard Laurel or Yanni, you can probably tell that the Facebook Founder was dodging questions left and right.

EU lawmakers asked him some very pointed questions but the answers they received were incredibly vague. We can likely expect that privacy-centric Europe will not sit on their hands with this one as the Yanks have done.

If investors are worried, it didn’t show up at all in the stocks price. As we can see, FB stock has already made a full recovery since the Cambridge Analytica revelations and is now holding near all-time highs.

Dry Crypto

It’s hard to be happy when everything is in the red like this but we can probably be comforted by the fact that we’re still off the lows.

As a reminder, here’s the bitcoin chart we’ve been watching. As you can see we’re still a few hundred dollars above the main support level circa $7,100.

Two positive things that happened recently in this space are worth mentioning.

First, the CFTC has gone one step further into their support of cryptocurrencies by releasing an Advisory for exchanges to list cryptocurrency derivatives. In their own words….

The second update is not as clear-cut but could have much larger implications. This article was forwarded to me by a dear friend in India this morning.

As we know, India’s central bank, the RBI, has released a circular ostensibly banning banks from dealing with crypto-affiliated businesses, something that has been choking the market in a key region.

The linked article explains that the Indian government may now be considering to release a full tax regiment for bitcoin and other digital assets, which would tax crypto-transactions as if they are considered actual property.

Now, the key source for the article is still anonymous so we would need to rely on Bloomberg Quint’s assessment of if he/she can be considered a reliable witness or not, but if the government does implement such measures it could be an indication that they feel the RBI’s ban will not last much longer. Otherwise, why waste your time collecting taxes on something that’s not transactable?

For me, I can’t help but get goosebumps every time I think about the possibility of the Bitcoin “digital gold” network being opened up to a country of 1.35 billion people, who are in dire need of a reliable payment network.

Let’s have an awesome 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.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 3.00 out of 53 votes, average: 3.00 out of 53 votes, average: 3.00 out of 53 votes, average: 3.00 out of 53 votes, average: 3.00 out of 5 (3 votes, average: 3.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 86 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Analysis

Pre-Market: Turkish Lira Spooks Markets, as Dollar Still in Focus

Published

on

Stock markets are broadly lower today, as yesterday’s risk-off shift continues to dominate trading, with the Turkish currency woes, the Italian political standoff, and the weaker than expected European PMIs providing ample ammunition to bears.

// -- Discuss and ask questions in our community on Workplace.

S&P 500 Futures, 4-Hour Chart Analysis

While the post-crash period since early February had its ups-and-downs, the best way to describe it is still a simple consolidation. In the US, trading has been taking place mostly in the range of only two sessions in early February, and the S&P 500 is still stuck in the middle of that range.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Forex markets are in turmoil, as Dollar-centered trading continues across the board, and the hunting season for vulnerable emerging market currencies is still on. The recent strength in the reserve currency together with the rising yields sparked an exodus from more risky assets across the globe and with the Euro hitting another 6-month low today, the pressure will likely persist. Investors await tonight’s Fed meeting minutes which could make a huge impact on the Dollar and equities, especially if the central bank cools down rate hike expectations after the strong Dollar rally.

EUR/USD, 4-Hour Chart Analysis

First, it was Argentina, now it’s Turkey that’s in the center of attention, as the country plagued by a huge private Dollar debt load end rampant inflation is highly sensitive to rising rates and a weaker currency.

USD/TRY (Turkish Lira), Daily Chart Analysis

More experienced investors could have a strong feeling of déjà vu, as the Turkish leadership is blaming a concentrated attack against the country, while the market is waiting for the inevitable central bank intervention in the form of an emergency rate hike. For now, there is still hope that the storm will pass, but should an outright currency crisis break-out, rate hikes won’t be enough, and even capital controls will only provide a temporary solution, and a hard landing for the economy will be almost guaranteed.

Europe Also Down as Oil Pulls Back

DAX Index, 4-Hour Chart Analysis

European stocks which have been lifted by the falling Euro in recent weeks fell to two-week lows today, after the bearish PMI releases and the lower than expected British inflation figures. While the string of negative economic surprises continued, emerging market woes were largely ignored by investors so far, and the rising short-term trends are still mostly intact throughout the Old Continent.

Commodities are lower mixed amid the large currency moves, as the Dollar’s strength weighs on the whole asset class. Gold is still stuck below $1300 despite its recent resilience, while Oil is trading just off its highs, even as the OPEC is reportedly contemplating a supply increase following the “normalization” of oil prices. The cartel which, led by Saudi Arabia has openly been seeking higher prices

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 255 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Market Overview

Huobi Pro Unveils 10-Currency Crypto Index

Published

on

Digital currency exchange Huobi Pro is launching a new crypto market index for its customers, the latest in a series of initiatives designed to boost cryptocurrency adoption.

// -- Discuss and ask questions in our community on Workplace.

Huobi Main Force Index

The Singapore-based exchange announced Wednesday it will be launching the Huobi Main Force Index, which is designed to track ten large digital assets pegged to Tether (USDT), a dollar-pegged cryptocurrency. Beginning next month, traders will be able to access the index in real time on the Huobi Pro platform.

According to an official press release, the ten-currency index will “reflect the overall performance of the Huobi Pro market,” providing investors with a single point of reference. The company has not provided any details about which currencies will be included in the index, although names like bitcoin, Ethereum, Litecoin and Ripple XRP are likely to be included.

“Assets will be ranked according to their turnover, and top assets of each category will be selected as index samples,” read the press release. “After samples are selected, the sample weight will be calculated based on the daily average trading volume of the previous quarter.”

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Huobi has also set up a contingency plan for cryptocurrencies that are delisted from the exchange. In this case, the sample will be “temporarily replaced,” while remaining coins “that are ranked first in the candidate list will be selected as the sample coins in turn.”

The exchange plans to offer other market-tracking indices in the future, though it declined to comment on specifics.

Huobi is the world’s third-largest cryptocurrency exchange by volume with daily turnover of more than $1.1 billion.

Crypto Market Innovation on the Rise

Indexing is just one of a series of innovations influencing the cryptocurrency market. It joins derivatives, publicly-traded funds, private funds and hedge funds in ushering a new era of cryptocurrency trading whose influence extends far beyond the retail investor.

Digital currency exchange Coinbase recently announced a new suite of products targeting institutional investors, including custodial services that offer more safeguards for crypto holdings. The San Francisco-based exchange believes it can unlock up to $10 billion in institutional money currently sitting on the sidelines.

Hedge funds are increasingly pivoting toward cryptocurrency, with the number of ‘crypto hedge funds’ surging 64% over the past year. More than 100 hedge funds have been launched to trade cryptocurrency exclusively over the period.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 410 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.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending