Connect with us

Cryptocurrencies

Going down a Stronger Path

Published

on

In one of the biggest turnaround stories in history, it appears that Russia is about to legalize and regulate the Cryptocurrency markets.

This very sudden change of stance comes shortly after Vladimir Putin had a brief meeting with Ethereum founder Vitalik Buterin at a major economic event in Russia, with some very important people in attendance.

The news gets even better. Not only does Russia intend to regulate bitcoin and Ethereum, at a later stage they even intend to oversee the tricky ICO markets in which new cryptos are created.

Exciting times indeed.

@MatiGreenspan
eToro, Senior Market Analyst

Please note: All data, figures & graphs are valid as of July 21st. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

The market reaction to Mario Draghi’s speech yesterday was indeed a surprise, even to Mario Draghi.

Though he was trying really hard to keep his cards close to his chest and not give away his future moves, investors saw right through his poker face and used the speech as confirmation bias of current theories, that the ECB is right in the middle of a taper but won’t admit it.

Draghi did his best to project that the ECB has no immediate plans to wind down the massive stimulus package and even left the door open to increase it later but he could not hide the fact that the economy is indeed going down a stronger path.

In today’s currency wars most economies, including the Euro, are trying to maintain a weak currency to promote exports. The surge in the Euro over the past 24 hours was almost certainly not what Mr. Draghi was going for.

The EURUSD is now about 60 pips away from its strongest level since January of 2015 (yellow line).

On the other hand, Mario probably shouldn’t get all the credit for this move. The Euro strength is also a factor of President Trump crashing the Buck.

At this point, the US Dollar really needs a stronger path…

Bitcoin’s Path

Following last week’s update entitled “Bitcoin’s Brexit Moment,” it seems we have some important progress.

Last night, miners have signaled very strongly to implement SegWit. The headlines today read that BIP91 is locked in!!

Let’s refer back to the flowchart that we posted showing the possible paths.

Link to image: http://imgur.com/a/0nWwn

What this update means is that the BIP148 side is far less likely. From here the most likely path is either down, to implement SegWit with a soft fork, or to the left, implementing SegWit2x with a hard fork to increase the block sizes.

Now, just because miners are signaling for BIP91 is still not a guarantee that it’s going to happen. There are a large number of obstacles in the way and the path is still far from clear. However, at this point, we have a lot more clarity than we did 24 hours ago.

The effect on the price is quite clear. Bitcoin surged on the news coming close to its all time highest level due to the increased amount of clarity to the situation. In fact, over the past week, Bitcoin has erased virtually all of the losses that it saw since the peak on June 12th.

This is the magic of Crypto.

Wishing you an amazing weekend.

This content is provided for information and educational purposes only and should not be considered to be a 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.

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...

4.7 stars on average, based on 122 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

Altcoins

Ethereum Price Rebounds from 14-Month Low; Long-Term Growth Still Intact, Says Co-Founder 

Published

on

Ethereum staged a large relief rally on Wednesday, as bargain hunters swept in to capitalize on extreme oversold conditions following a 35% weekly rout for the world’s second-largest cryptocurrency.

ETH/USD Update

The ether price surged 13.6% to $294, clawing back more than half the losses it incurred since Monday. Total trade volumes were $1.9 billion, according to CoinMarketCap.

At current values, Ethereum has a total capitalization of $29.8 billion.

Momentum has returned to the ether trade, with the monthly relative strength index (RSI) improving to 67. Ethereum’s RSI plunged to single digits twice over the past eight days.

The broader cryptocurrency market improved to $208.4 billion on Wednesday, which is a reversal of nearly $20 billion from the recent swing low.

Long-Term Growth Trajectory Still Intact: Lubin

Ethereum co-founder Joseph Lubin isn’t concerned about the latest downtrend in cryptocurrency prices. In fact, he believes the market is in better health today now that speculative investments have died off and bubble conditions have eroded.

“We’ve seen six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening but when you look back they look like pimples on a chart,” Lubin, who currently serves as CEO of ConsenSys Inc., said during an interview with Bloomberg. “With each of these bubbles we have a tremendous surge of activity and that’s what we’re seeing right now.”

Lubin believes Ethereum will play a pivotal role in the future alongside hundreds of other blockchain networks. This view is shared by other industry leaders, such as Ethereum co-founder Vitalik Buterin and Ted Rogers of Xapo, who believe the vast majority of tokens will go to zero.

Arthur Hayes Rips Ethereum

BitMEX CEO Arthur Hayes launched a scathing criticism of Ethereum in a recent post on Crypto Trader Digest, where he attributed the cryptocurrency’s growth to the highly speculative ICO boom.

In Hayes’ view, Ethereum will soon go “from a 3-digit to a 2-digit shitcoin.”

In the crypto community, a ‘shitcoin’ is a pejorative term that describes an altcoin that has become worthless.

As Hacked reported on Tuesday, a large-scale cash-out of ICOs appears to have sparked the recent leg of the crypto market downturn. At its lowest point on Tuesday, the cryptocurrency market cap was valued around $189 billion. That’s a $220 billion reversal from three months ago.

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.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 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 548 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

Altcoins

Why Investors Should Pay Attention to OmiseGO

Published

on

Decentralization is a word that receives a ton of lip service in the blockchain community, but some companies are actually doing an amazing job getting their actions to back their words. OmiseGO is one such company.

Omise was founded in 2013 as a payment services company, and OmiseGO is an extension platform that operates separately. It is important you not confuse the two.

As an ERC-20 token that operates a smart contract platform, OMG is a high-performing proof-of-stake protocol with a massive mission to bring decentralization to trading.

What Need is OmiseGO Fulfilling

Ripple was originally seen to be the top solution in the payment providers sector, but its lack of decentralization has shown that there are significant downsides to their operating model. OmiseGO aims to become a decentralized Ripple, but operating a high-powered decentralized exchange (DEX), and has already become the top name in on-chain and cross-chain transactions.

With decentralization and the ability to connect fragmented payment processors, OmiseGO would also be able to help the unbanked gain access to the banking system.

There is currently a massive gap in the legacy financial network, since payment networks (such as SWIFT) have unilateral control over the flow of financial services on their network. Paypal and Venmo have proven to have similar centralization risks, even if they bring some competition to the table.

Not only would OmiseGO decentralize payment processing and create a DEX, but they have released a software development kit (SDK) to enable the creation of new applications and wallets on their system.

Meet the OmiseGO Team

OmiseGO is run by a well-reputed team (headed by Jun Hasegawa) who in the past have been referred to as “Fintech Rockstars” by Forbes. Their advisory board is packed with big names like Vitalin Buterin, Gavin Wood, and Joseph Poon, to name a few.

By contributing $100,000 to the Ethereum foundations DEVGRANTS program, they have indicated a strong commitment to the future of Ethereum and their investment within the community.

Every token needs to have its utility, and OMG is paid to holders in exchange for validating transactions. These holders have the right to confirm blocks, and effectively work as income producing assets in the course of the operation of the network.

The incentives here lie in the value of the network. The more transactions that need to be validated, the more token holders will need to confirm transactions, and therefore the more money is likely to be distributed to OMG holders in exchange for their confirmations.

OmiseGO’s Recent Performance

OmiseGO is now trading at around $3.30 USD, which is down an incredible amount from its high above $24 USD in January. This has been typical of many assets in the industry, but could be a sign that OMG is oversold.

There has also been a lot of news about OMG recently. In July a partnership with Status was announced that would result with the integration of the services of the two companies. Status is an open source dapp (decentralized app) for phones and browsers, and was one of the first clients to be developed on the Ethereum blockchain. Their core project is to link mobile chat and social media by using Ethereum tokenization.

With the goal of ultimate decentralization, OmiseGO has its work cut out for it. Although founded in 2013, they are still in the early stages of their expansions. More good news came in early June, when OMG was listed on Unocoin, one of the top asian exchanges located in India.

OmiseGO’s dream of connecting all the disparate financial systems and rails gives it the potential to become the DEX of the future. The question is whether they can displace the already dominant Ripple by going in a different strategic direction and sticking to their core tenets of decentralization and trustless networks.

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.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.9 stars on average, based on 26 rated posts




Feedback or Requests?

Continue Reading

Altcoins

Bitcoin Price Defends $6,000 as Crypto Market Cap Returns Above $200 Billion

Published

on

Bitcoin rebounded sharply on Wednesday after a bear market breakdown dragged prices to within $100 of yearly lows. Although the technical indicators have improved, significant downside risks remain.

BTC/USD Update

Bitcoin’s price was up 4.6% on Bitfinex to trade at $6,483. The leading digital currency reached a session high of $6,483, having recovered more than 8% from Monday’s swing low. Bitcoin’s 24-hour trade volumes averaged $4.6 billion on Wednesday.

The $6,000 price point has emerged as an important support level for bitcoin. As Hacked previously reported, this level is not only psychologically significant, it represents more or less the break-even rate for miners.

The monthly technical chart shows improving conditions in the bitcoin price, though this should be taken with a grain of salt given the market’s extreme moves as of late.

At current levels, bitcoin has a total market capitalization of $109.8 billion, which represents 53.6% of the total cryptocurrency market.

Altcoins and tokens collectively rose by $8 billion on Wednesday to reach a total value of $94.4 billion, according to CoinMarketCap. The value of all digital assets was $204.6 billion.

The Market’s Next Move

Although predicting bitcoin’s next move is notoriously difficult, a successful defense of the $6,000 floor is an important step in facilitating the next rally. That the yearly low ($5,755) wasn’t breached during the latest downtrend suggests the bulls may be running out of steam.

That said, bitcoin’s dominance rate reveals structural weakness in the cryptocurrency market, not to mention damaged investor psychology. As Hacked reported Tuesday, cash-out from the ICO boom appears to be largely responsible for the latest reversal, a sign that investors were losing confidence in riskier assets. This is further corroborated by Ethereum’s dramatic selloff over the past seven days. The so-called developer’s cryptocurrency has been responsible for three-quarters of initial coin offerings.

According to BitMEX CEO Arthur Hayes, investors shouldn’t expect a large price recovery at this stage given the general lack of momentum, volume and stability in the market. Trading volumes – a key proxy for demand in the cryptocurrency market – averaged $13.4 billion on Wednesday, based on latest available data.

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.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 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 548 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

5 of 15 Seats Available

Learn more here.

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