Living in a Fractured World

We can see it manifest in several European countries at the moment. In the United States, it’s playing out on the grand stage at this very moment with the entire world watching.

Governments are simply not functioning as they should. People to the left and to the right are increasingly supporting radical parties and candidates. When democracies are so far divided the result ends up being a deadlock or even a shutdown.

This will be the main theme at the World Economic Forum in Davos Switzerland this year. For those of you who are not familiar, the annual Davos convention is attended by all the most powerful politicians, bankers, and businessmen in the world. One of the people who will be there this year is someone that everybody who reads these daily updates knows very well… me. 😉

Will keep you updated on how it goes!

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Awesome Day 105
  • South Korean Insiders
  • Crypto Markets Evening Out

Please note: All data, figures & graphs are valid as of January 19th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

As we mentioned above, the chances of a US government shutdown this week are increasing every moment. At this point, the media is simply speculating how long it might last and “who’s fault” it will be.

The stock indices in the USA did come down yesterday, but not by much. In fact, the S&P500 managed to close its 105th day without a 1% correction.

Stocks in the rest of the world are rather mixed but mostly green…


The US Dollar is again at its lows and threatening to drop further, which is propping up gold, and to a lesser extent, oil.

South Korean Insiders

Speaking of propping up. It looks like several government officials in South Korea have now practiced insider cryptotrading. This is the highest profile case to date.

As we know the market has sold off violently this week with the South Korean Finance Minister talking of a total ban on cryptotrading in the country. Reportedly, some dirty politicians sold off their cryptos just before the statements went public.

In a regular market, these guys would be put in jail for a long time. However, regulations regarding digital assets are still not clearly defined in the laws of most countries, including SK.

In my personal opinion, this type of behavior should be punished more than other white collar crime offenses. Lawmakers have a unique opportunity here to set a precedent that could be used worldwide and across many different industries and tell the world that if you do something wrong you will get punished. #WishfulThinking

Crypto Market Evening Out

Hooray, we’re off the lows but we might not be out of the woods just yet.

Here we can see that with the exception of Ripple, things have been rather flat throughout trading on Thursday…

If we follow the same pattern that’s been happening over the last year, a major sell-off is usually followed by a prolonged period of consolidation.

This would actually be an excellent thing for the crypto industry. Stable prices are a blessing as it gives time for the brokers and exchanges to scale their business and prepare for any possible future surges.

In addition, if we’re considering the implementation of a new currency or decentralized platform, extreme volatility is more of a headwind than anything else.

Premium Watch

As you know, we’ve been watching the bitcoin premiums in two key countries very closely over the course of this week. The good news is that these premiums are evening out as well.

Japanese traders on Bitflyer are only paying 12.5% more per coin than their counterparts in the west, and the premium in South Korea is down to 16%. They’re still overpaying but much less than they were at the beginning of December.

The volumes have been stabilizing as well with Japan reclaiming dominance at 63% of volume on the major exchanges earlier today.


The above chart is from cryptocompare.com but it should be noted that coinhills.com has a new tool that also shows the dominance by country and the data is slightly different.

That’s all for today. As always, let me know if you have any questions, comments or concerns, or if you need any further assistance.

Have an amazing weekend!

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.