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Cryptocurrencies

Incentives of Cash in the Summer Months

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Welcome to September. Hope you had a profitable August. If you were involved in Cryptos it likely was as the value of the industry has risen by $79 Billion for a total growth of 84%!!

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Today also marks the one month anniversary of the bitcoin bastard known as bitcoin cash or BCH.

So far this has been one of the most interesting economic experiments I’ve ever seen. Each individual, exchange platform, and mining pool has their own set of risks and rewards, their own perspective, and their own agenda.

The market cap of all BCH currently in circulation is holding steady just under $10 Billion making it the 3rd most valuable blockchain network. However, despite a spike around the middle of the month, BCH volumes are far lower than BTC.

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Over the past 24 hours, only about $275,000 worth of BCH has traded hands, making it the 5th most traded. In comparison, BTC remains in the top spot with a 24 hour volume of $1,975,000.

For a brief time, BCH was more profitable for miners, which did cause some mining pools to switch over. However, this phenomenon has also been reversed and bitcoin is again more profitable to mine than BCH. At the moment, Ethereum is more profitable than both of them but these things tend to fluctuate rather quickly.

At this point, it’s extremely difficult to say whether Bitcoin Cash is near the end of its life cycle or just at the beginning, which is what makes it such a marvelous experiment.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs below are valid as of September 1st. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

The Stock markets are having a slow but steady summer so far despite the record low volatility seen in July.

The Dow Jones has managed a gain of 522 for a total growth of 2.43% since June 21st (white circle on the chart below). Of course, after seeing the cryptos rise by 84%, 2.5% seems a bit boring but it’s really not.

If stocks go up by 10% in 12 months it’s generally considered a pretty good year and if we calculate from September 1st of 2016 we’re up 19.5%

At the moment, banks are providing loans at historically low rates. So if a firm can borrow money for 1% and return even 2% in a year in the stock market it’s only good business. 2.5% in the summer alone is still an excellent incentive.

The US Dollar, on the other hand, is not so hot…

Steven’s Jawboning

Yesterday, Donald Trump’s Treasury Secretary Steve Mnuchin admitted that having a weaker US Dollar would be good for US trade.

Mnuchin was previously on record saying that he supports the long standing policy of the United States to maintain a strong dollar. A policy that Trump has lambasted many times. Though Steve did not go so far as to fully agree with Trump he did highlight the benefits of a weaker Buck.

The Dollar did indeed react to Steven’s statement and thwarted a somewhat solid recovery that it was working on for the past few days.

Jobs Report

What this summer really needs is a good pop.

The US Non-farm payrolls report, which comes out on the first Friday of every month is normally pretty good at creating some volatility.

Analysts estimate that approximately 180,000 jobs have been created in the US economy since August 1st. A number which is historically quite average and fairly boring.

Nevertheless, seasoned traders will be watching very closely at 13:30 GMT for any surprises in the data.

Better or worse than expected job creation, employment percentage, or average salary earnings could certainly pump some life into a market which is almost ready to awaken from her deep summer slumber.

One more thing

Litecoin and Ripple are still exploding!!

They are up 16.5% and 10.5% respectively over the past 24 hours.

We’ve got 22 days left to summer. Please make the most of them!

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.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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2 Comments

2 Comments

  1. saintdesy

    September 1, 2017 at 4:52 pm

    You’re missing 3 zeros at the end of your numbers for BTC and BCH volume

    • Mati Greenspan

      September 4, 2017 at 11:56 am

      Thanks a lot Desy. You are correct. Very sorry about that. Will be more careful in the future.

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Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

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The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

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Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

(more…)

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Cryptocurrencies

Trade Recommendation: Ethereum Classic

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The market moves between the 16.00 and 17.50 levels. DMI confirms range market conditions. This trading idea is based on a breakout from this horizontal channel. If the price breaks the 17.50 resistance level, it will likely be a signal confirming further upward movement. We should be ready to join this movement. Pending orders for buy can be placed at 17.65 level with stop orders below the support at the 15.70 level. The main profit target is 21.00 but the part of trade volume can be left for the long run. If you don’t use leverage, trading volume for this trade is up to 10% of your deposit.

Market: ETCUSD
Buy: 17.65
Stop: 15.70
Profit Targets: 21.00

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The trading signal is based on Poloniex chart.
Disclaimer: The analyst does not have investments in Ethereum Classic.

Featured image courtesy of Shutterstock. 

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Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Cryptocurrencies

Robbing from the Poor to Feed the Rich

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As we see the astonishing rate of bitcoin adoption accelerate throughout the globe, one of the key things to watch are region specific updates.

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Japan is already well on their way to full integration but several small countries have already outlawed it outright. In my opinion, the key region to watch right now is India.

It’s been one year since Prime Minister Modi took the drastic step to basically outlaw cash and the citizens are still struggling to adjust. So far they’re mainly relying on credit cards but some are still using old bank notes on the black market.

So this headline is particularly interesting at the moment.

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Of course, the government doesn’t necessarily have to respond to the court’s wishes with any real action but it’s comforting to know that they’re pushing it forward.

The price of bitcoin climbed to a new all time high of $7,965 following this announcement before pulling back slightly this morning.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of November 17th. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

All stocks are green this morning. Wall Street gave an appropriate salute to Washington DC and the stocks went higher.

Republicans were easily able to get their new tax bill through the House of Representatives and now face a tough battle when the bill reaches the Senate. House Republicans have now proved that they’re willing to sell their souls for a win. This bill, on the face of it will have the effect of depriving 4 million of the poorest Americans of their healthcare in order to drastically reduce taxes on the wealthy.

This is the definition of robbing from the poor to feed the rich.

Of course, many souls on Wall Street are already involved in a long-term lease with the Devil. We can see here that the S&P500 was able to erase five days of losses in about five hours.

Ripple + American Express

Ripple caused waves yesterday as two major financial firms announced that they will now start using their service. American Express and Santandar Bank will use the Ripple blockchain to open a blockchain payments wormhole between the US and the UK.

The price of Ripple’s XRP tokens spiked on the announcement. However, the excitement wore off pretty quickly when it became clear that the new payments channel will likely not use XRP in the initial stages.

Here we can see the initial spike from a stable rate of 20.5 cents per token to as high as 27.1 cents per token in just under an hour.

Still, the fact that these two very large financial institutions are partnering with this particular startup is astonishing and should be seen as a positive step both for the Ripple network and the entire crypto community.

Astonishing growth continued…

Over the past 24 hours, including a slight pullback, the value of all crypto-assets has risen by an additional $5 Billion. Over the past month, the total market cap figure has gone from $173 Billion to $225 Billion this morning for a total industry growth of 30%.

The weekends have proven to be particularly volatile in the crypto-markets so I’d like to wish you an astounding weekend 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.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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