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Legalize It

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Great news!!!

Authorities from the new government of South Korea have announced yesterday that they are introducing a framework to regulate and legalize Bitcoin. South Korea has been one of the world’s largest buyers of digital currencies so far this year and this news comes as an extremely pleasant and well-timed surprise for blockchain enthusiasts.

Today, the first 334 stores (of the 260k store deal) in Japan have started to accept the shiny digital asset.

The government of India is expected to announce their decision on digital currencies later this month and we hope for some more good news.

All these new users are currently threatening to put a strain on the Bitcoin blockchain as it was not built strong enough to facilitate this many transactions. However, the Bitcoin mining community has been working hard to reach a solution and just might be able to pull it off within the next 30 days.

Seemingly unrelated, Goldman Sachs has revised their forecast stating that we could see a huge drop before a major surge all the way up to $4,000 a coin by the end of the year.

Mati Greenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs below are valid as of July 4th. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

“For every action, there is an equal and opposite reaction.”

-Sir Isaac Newton

With all the positive updates coming from the South, the situation in North Korea seems to be escalating to a not so positive place. This morning, Kim Jong Un conducted one of the most successful missile tests to date.

The rocket flew for more than 37 minutes before landing approximately 200 miles off the Japanese coast. Here’s a map from CNN.

President Trump was quick to respond with two tweets calling for “a heavy move” from China to “end this nonsense once and for all.”

However, the response from China seemed a bit less urgent and they plan to continue with their strategy to talk Un down.

This is likely to be a very hot topic as leaders from around the world gather this Friday and over the weekend for the G-20 meetings in Hamburg. This convention is set to be the setting for the much awaited and (possibly) the first meeting between Donald Trump and Vladimir Putin.

President Xi Jinping will be meeting with Putin in Moscow today, presumably to align Chinese-Russian relations before the big event. As far as China is concerned relations between the two nations have never been better, while relations with the Trump administration are on an unsustainable path of escalation.

Nasdaq Oops

They’re calling it a glitch.

Last night the Nasdaq accidentally sent out some very sour quotes by mistake.

Shares of Apple, Google, Amazon, Netflix, eBay, Zynga, and more were all showing at exactly $123.47. For some of these companies, the move represented more than 3000% gains, for others a major loss.

These stocks were already under pressure and while these type of mistakes can sometimes happen, it does not instill confidence in markets that many are already calling overvalued.

Just yesterday a legendary investor from Merryl Lynch put out a very bearish post, which was picked up by marketwatch.com with this chart as the centerpiece.

Bucking the Trend

One more giant move that is worth mentioning is the Australian Dollar, which went on a wild ride last night.

Nobody was really expecting the Reserve Bank of Australia to raise their interest rates at their meeting yesterday but they were expecting them to get onboard with the rest of the world’s central banks.

Over the last few weeks, we’ve seen a huge push from the ECB, the BoE, Fed, and others to tighten the money and raise interest rates. It seems they’ve printed enough money since 2009 to last us a very long time. Now it’s time to stop the printing and get back to normal economic policy.

The RBA seems to be having none of that though. While they did change their tone just a bit, they are still erring on the side of caution and would like to see a rise in wages before tightening the belt.

Here we can see the AUDUSD ramping up before the meeting and then selling off promptly after. For upside down currency traders and for carry-traders, this is quite a significant pullback for the high-yielding asset.

As always, please feel free to send me your questions, comments, and feedback. I’m always happy to hear it. 🙂

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.

Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re 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.

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4.7 stars on average, based on 114 rated postsSenior Market Analyst at Etoro.com.




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Altcoins

Cryptocurrency Market Rebounds as Trade Volumes Recover from Yearly Low

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Cryptocurrency prices were seeing green Sunday, as market activity rebounded from the lowest level of the year with bitcoin and the major altcoins making tepid progress.

Crypto Market Update

Every cryptocurrency in the top-20 by market capitalization was trading in positive territory Sunday. As a result, the total market capitalization of all digital currencies rose by $6 billion to $254.5 billion. Bitcoin’s share of the pie remains roughly 43%.

The bitcoin price edged up 1.7% to $6,363, with the bulls continuing to defend the critical $6,000 level despite repeated downturns.

Ethereum, the no. 2 cryptocurrency by market cap, rose 2.4% to $447.

Bitcoin cash jumped 3% to $719. BCH has shown poise over the past five days even as accusations of node centralization continue to grow.

Ripple XRP rose 1.9% to $0.445. Meanwhile, EOS gained 2.4% to $7.13.

Volumes Hit 2018 Lows

Daily turnover in the cryptocurrency market bottomed fell to around $8.8 billion on Saturday, the lowest since November, according to CoinMarketCap data. Daily trade volumes rose by as much as 20% Sunday, reaching $10.5 billion. At the time of writing, 24-hour volumes were valued just under $9.9 billion.

Since the April downturn, trading volumes have thwarted multiple rally attempts for cryptocurrency prices. Daily turnover has crossed the $20 billion mark only once since June.

As Hacked previously reported, tepid volumes reflect a general decline in retail trading activity on major digital currency exchanges. This is further corroborated by the sharp drop in Google search results for terms like “bitcoin” and “cryptocurrency.” Basically, the half-year market downturn has spooked new traders from entering the market.

Amid the downturn, exchanges like Coinbase have reported a drop-off in app downloads as fewer traders show interest in buying cryptocurrency. Meanwhile, trading apps like Robinhood are still growing thanks to a suite of service offerings that extend far beyond cryptocurrency. Robinhood began offering cryptocurrency back in February but still maintains a thriving platform for traditional markets, such as stocks and ETFs.

Several leading exchanges have announced plans to relocate to jurisdictions with friendlier policies toward cryptocurrency. Malta, a tiny Mediterranean island state, has managed to lure Binance and OKEx to its shores thanks to favorable regulations.

As Hacked’s James Waggoner recently showed, much of the downturn in crypto trading activity has been associated with fears of a regulatory clampdown in jurisdictions like the United States and South Korea. In the case of China, those fears were realized last September when policymakers issued a blanket ban on cryptocurrencies and initial coin offerings.

However, a “tectonic shift” in regulatory thinking is currently underway, which could pave the way for a renewed uptrend in cryptocurrency markets. Case in point: the U.S. Securities and Exchange Commission (SEC) has declared bitcoin and Ethereum to be non-securities. So long as there is no conveyance of ownership, ICOs may also fall under this favorable regulatory purview.

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.

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4.6 stars on average, based on 497 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.




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Altcoins

Bitcoin Cash Price Shows Poise as Accusations of Centralization Grow

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Bitcoin cash (BCH) traded within a narrow range Saturday even as opponents of the virtual currency hurled accusations of centralization against its developers.

BCH Price Levels

The bitcoin cash price was little changed on Saturday, reflecting a subdued trading environment in the broader market. At press time, BCH/USD was trading around $703, virtually unchanged compared with 24 hours ago. At current levels, bitcoin cash is capitalized at $12.1 billion, according to data provider CoinMarketCap. Daily trade volumes amounted to $274.5 million.

The fifth largest cryptocurrency by market capitalization has shown poise over the past five days, with prices fluctuating between $671 and $706. Like other cryptocurrencies, bitcoin cash experienced a sharp reversal last Monday, knocking prices from more than two-week highs.

Bitcoin Cash Highly Centralized: Bitpico

Hacker group Bitpico has uncovered massive node centralization of the Bitcoin Cash network, and has taken to Twitter to uncover IP addresses of the platform’s nodes. One screenshot of Bitpico’s discovery showed 98% of the IP addresses associated with bitcoin cash were “sitting in the same server rack,” the group tweeted earlier this week.

In response, a Twitter user by the name of Melik Manukyan showed that the BCH servers were hosted on a cloud farm belonging to Alibaba.

The group  claimed that 49% (or one-half of 98%) of all Bitcoin Cash network nodes were running on the Alibaba cloud farm.

If confirmed, centralization of the Bitcoin Cash network would mark a significant departure from the original bitcoin, which was envisioned as having no central authority (as an aside, the backers of bitcoin cash claim that BCH is the original crypto chain).  Satoshi Nakomoto said as much in the original bitcoin whitepaper published in 2008:

“By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator of the block. This adds an incentive for nodes to support the network, and provides a way to initially distribute coins into circulation, since there is no central authority to issue them.
The steady addition of a constant of amount of new coins is analogous to gold miners expending resources to add gold to circulation. In our case, it is CPU time and electricity that is expended.”

Last month, Bitpico announced it was planning to launch an attack on the BCH network with the goal of dividing it. The group says the coordinate strike will inflict grief on Roger Ver, one of bitcoin cash’s most ardent supporters.

Ver was revealed as the owner of bitcoin.com back in 2015. As Hacked reported back in April, manipulation involving bitcoin.com may have contributed to BCH’s massive rally. You can read the full story here.

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.

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4.6 stars on average, based on 497 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.




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Analysis

Crypto Update: Bulls Hold Their Ground as Coins Settle Down

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Trading volumes and volatility declined substantially in the cryptocurrency segment this weekend, as the major coins are trying to hold the key support levels that are just below the current prices. For now, Bitcoin, Ethereum, and Ripple all managed to avoid a break below the June lows and the technical damage is limited among the smaller coins as well, despite the still dangerous setups on the long-term charts.

That said, the general character of the market is still bearish, with high correlations between the majors, and robust resistance levels capping the rally attempts in most cases. With all of those in mind, and given the still active short-term sell signals in our trend model, traders should still not enter new positions here, as a test of the lows is likely in the coming week.

The market is still missing a leadership that could turn the short-term trend around, and the relatively weak coins that have been leading the way lower in the recent period are still not showing signs of strength, despite the occasional short squeeze rallies.

BTC/USD, 4-Hour Chart Analysis

BTC tried to get back above the $6275 support/resistance level several times since falling below it on Thursday but the attempts all failed so far. The coin is still in a clear downtrend, although the previous lows haven’t been tested yet.

From a long-term perspective, a durable break below $5850 would signal a structural bear market, so the coming period will be crucial for the whole segment. Primary support is at $6000, while resistance is ahead at $6500, $6750, $7000, and $7350.

Still No Real Momentum Among Altcoins

ETH/USD, 4-Hour Chart Analysis

The basic setup among the largest altcoins is unchanged similarly to BTC, with Ethereum trading between the $400-$420 support zone and the $450 resistance level since the Monday plunge. The coin is holding up above the June low, and it’s still relatively strong from a longer-term standpoint compared to Bitcoin.

On the contrary, ETH is looking weak short-term, and that also points to the continuation of the declining segment-wide trend. ETH is facing further resistance near $500, while support below $400 is found at $380 and $360.

XRP/USDT, 4-Hour Chart Analysis

Ripple barely managed to avoid a break below the June lows, and the third largest coin remains very weak from a technical standpoint, and strong selling pressure is apparent in its market. The coin should stay above the $0.42 level to avoid major technical damage, and he coming days could be crucial for bulls, with strong resistance ahead around $0.45 and $0.51.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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 291 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.




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