The world of cryptocurrencies has never been more exciting. What we’re witnessing now with the new bitcoin spinoff is nothing less than value creation by magic and faith.
The new currency goes by many names. The official name is Bitcoin Cash and some brokers are listing it as BCC and some BCH. It’s also received the nickname Bcash. Personally, I think BitCash would be very fitting.
Whatever you call it, the value of this new network has gone from 0 to more than $12 Billion, back to $5 Billion, and now floating somewhere in the middle.
Any asset is worth exactly what somebody is willing to pay for it. For now, people are willing to pay about $473 per coin, which some are seeing as a discount to what the original BTC is trading for.
However, even though the market is giving it a suddenly high valuation, the mining community is reluctant to turn over their hashpower. This is far from over.
eToro, Senior Market Analyst
Overboard on Russia
Ripple by volume
Please note: All data, figures & graphs are valid as of August 3rd. All trading carries risk. Only risk capital you’re prepared to lose.
With a huff and a grunt and many verbal complaints, President Trump signed some new sanctions against Russia.
Pressure was mounting from other branches of the U.S. government to punish Russia for their alleged interference in Trump’s election. This concession to Congress is quite significant and could possibly provide a turning point for this administration and increase faith in the President.
The new sanctions were controversial not just at home. European officials were pretty ticked off that the USA is acting without their consent nor concern for their interests. After all, they’re a lot closer physically and it does seem that these sanctions can have an adverse effect on oil supplies, which Merkel is currently trying to get from Putin.
The U.S. Dollar has gained some ground against the Ruble lately but the reaction to these new sanctions has been a bit dull. If the USDRUB breaks above 61 it would certainly be significant.
Meanwhile, the investigation into whether Trump was part of Russia’s plot to make him president is gathering strength. Special prosecutor Robert Mueller is not only building a case. he’s currently building a dream team.
…are strong. The Dow Jones reached a new all time high yesterday topping 22,000 points for the first time. The U.S. Dollar fell further and the Euro is flying off the charts.
Cryptocurrencies are rather flat. Other than the addition of BitCash the market is rather stable.
So let’s take a look at our latest addition to the platform and see how she’s going…
The Ripple Affect
(Link to Liam’s comment on eToro)
As can be expected, the community here in the world’s most awesome social investment platform has embraced the new digital asset.
These astonishing numbers can be seen at: https://www.etoro.com/markets/xrp
and, just for you, I’ve obtained a special graph from our Trading Room that shows the volume on the platform since opening.
The Main Event
For Forex traders, this fundamental setup is as good as it gets…
Last time the Bank of England met, Governor Mark Carney was staunchly opposed to any type of adjustment in interest rates. Since then he’s done an apparent 180 and has recently come out in support of raising the rates.
Currently, the BoE is offering just 0.25% interest on deposits. This was adjusted down from 0.5% in the wake of the Brexit as an emergency measure.
The impact of a rate increase on financial markets is usually so great that the Bank of England is not likely to make an adjustment today. The shock would be too great and could lead to economic instability. Especially, after the signals from last meeting.
However, many analysts and traders are expecting the Mark to make his new views policy today and signal that a rate increase will be coming soon.
No matter what the announcement is, expectations are high in both directions and large positions will be placed. Virtually all the major players will have their finger on the trigger and scope set to GBPUSD at high noon London time.
Let’s hope for some of that Carney Magic!
Have a wonderful day 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.
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