Many Great Things to Come

Many thanks for all the comments and feedback from yesterday’s blog about my trip. Many of you were asking to be more specific about the information that I received there. So I did want to let you know that most of what I did was more networking and meeting people than anything else.

In line with that, I did meet some people who blew my mind with some of the things they’re working on. I have added all of them to this daily update and asked many of them to send back further details about what they’re doing so I can update all of you on these exciting projects.

The experiences we have help shape who we are and influence what we say and do. So expect further updates about this in the coming weeks and months.

To answer your question more pointedly, the main takeaway that I got from Davos was that each individual has the power to change the world. However, the key to doing it is not by making it your end goal. Rather, find something positive that you are passionate about and work hard on it.

“If you want to change the world start by making your own bed.” -Admiral William McRaven

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Time of War
  • Dollar Getting Crushed
  • Weiss on Crypto

Please note: All data, figures & graphs are valid as of January 25th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The big boys are talking in Davos and it seems to be influencing the markets a bit. On Tuesday, President Trump imposed some tariffs on a few specific import items that are usually made in China. Suspicions that Trump was finally making good on his campaign rhetoric to start a trade war with China seem to have been confirmed yesterday by Wilber Ross…

Stocks around the world are taking a bit of a hit as the increased possibility of an all-out trade war between the world’s two biggest economies.

Adding fuel to the fire, US Treasury Secretary Steven Mnuchin seemed to have changed his mind about the US Dollar’s role in the economy. Previously he had been advocating for a stronger Dollar but yesterday he was quoted as saying…

These comments are actually more in line with what Trump has been saying from the beginning but now that Mnuchin seems committed, the Dollar had a grand sell-off, falling to its lowest point in more than three years.

The weaker Dollar sent Gold and Oil up to fresh highs as well and we can also observe a stronger Japanese Yen.

Crypto Ratings

For the longest time, I’ve been telling people that we need a better way to grade cryptocurrencies. The market cap is one metric but it’s really only a small part of the story and not a great indication of the strength or viability for most digital assets.

It seems now that the crypto craze is going mainstream, an official US rating agency just released a comprehensive grade on 74 of the top traded cryptos.

At first glance, it looks like they actually did a pretty good job. It makes sense that none of them got an A rating. This is an extremely risky market and it would be really misleading to say that any of them are “solid” investments.

I really liked that Ethereum was rated slightly higher than Bitcoin, and their reasoning is exactly what we’ve been talking about in these daily updates. The Bitcoin blockchain is congested.

The event was a bit chaotic and their website went down due DDoS hacking and a massive surge in visitors.

For cryptotraders, this is the first really great event so far this year. This is a direct endorsement by an established financial firm and cements the “cryptocurrency” label as an acceptable asset class in the eyes of the world. Since the announcement, we’re seeing a nice rally in the market.

As we stated previously, prices might fall further but they don’t necessarily have to. If momentum off this event builds or we get some other positive updates, we could be in for some great things ahead.

As always, let me know your thoughts and opinions. Post directly to my wall on eToro or tag me on any other social network.

Have an outstanding day!

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.