In this crazy new world of blockchain technology and digital assets, news travels fast and prices move even faster.
Yesterday, I made a short video explaining the current Bitcoin scaling issues. About an hour after the video editing was complete and before I’d even had a chance to upload it to YouTube it seems the situation was already altered slightly.
You can see the video, which is still quite relevant, here: https://youtu.be/6gjKY-XHKMI
Yesterday afternoon, it was announced that a major supporter of bitcoin will be leaving the main network for a new one known as Bitcoin Cash. However, the level of support for this new project is still limited and so the price of BTC has only been slightly affected.
Let’s take a look below…
eToro, Senior Market Analyst
The world of traditional finance remains completely irrelevant. Let’s do it quickly so we can get on to the important stuff. 🙂
Janet Yellen’s interest rate decision today is expected to be boring by design. No changes and no press conference. No surprises expected. In just a few moments from the time of this writing, the U.K. will announce their quarterly growth number, watch the Pound.
Oil surged on less production in the USA. It’s a comforting thing to see that supply and demand are having a larger impact on the price than the talking heads of OPEC.
Stock market volatility reached a new all time low yesterday. The VIX “fear” index, which tracks the speed of movement on the S&P500 reached as low as 9.06. This, as the S&P500 itself, reached a new all-time high of 2,479 points.
In this chart, we can see the S&P500 (in white) against the volatility index (in green) since the beginning of the year. Notice the reverse correlation?
Bitcoin Cash (continued)
Now that we’re about 12 hours after the breaking news, it seems the market is already fully pricing in the possibility of a break-off. Some are calling it a hard fork but at this point, it doesn’t seem like one to me.
Here’s the graph of BCC since inception about 24 hours ago…
In that time, the price of bitcoin has come down by about $260.
As this project gains momentum or loses it, it could impact the price of bitcoin. Other than bitcoin cash, the mining community is still showing outstanding support for SegWit, which should be implemented shortly. Still unclear is whether or not we’re headed for a hard fork with SegWit2x.
Here’s where it gets fun. If SegWit2x does not come through, it’s now likely that more miners could move in favor of this new option.
News from Uncle Sam
In a groundbreaking announcement, the SEC in the United States has ruled that digital tokens of all kinds will now be considered as financial securities.
The ruling was part of an investigation into Ethereum’s first token sale “the DAO project.”
Going forward, ICOs in the USA are going to be a lot less fun and a lot more regulated.
Indeed, the current ICO market is a bit of a free for all and many consider these new token sales to be “wild west” investments. So a little oversight wouldn’t really be a bad thing. Personally, I was hoping that the tech community would provide a solution for this before Uncle Sam had the opportunity to bring down the sledgehammer.
So as far as the U.S. citizens are concerned the proverbial party seems to be over. However, other regions are certainly still free to proceed. A few days ago we learned that Russia is looking to oversee and regulate this market in their own way starting from next year.
Introducing the new Crypto CopyFund
Here in eToro, we are incredibly excited by the awesome growth of blockchain technology and we feel passionately that it will play a big role in the future of finance and technology.
So, we’ve been working on a brand new investment product for you that is designed to capitalize on this paradigm shift.
We’re very pleased to announce the release of the brand new Crypto CopyFund, which is now available on this link.
Yesterday, we held a one time webinar, hosted by yours truly, to show off the advantages of this unique way of investing and how simple it is to get started and of course answer the many questions from our current clients.
Feel free to review a recording of the presentation now on YouTube: https://youtu.be/CpXjOAyzc1Q
As always, please feel free to contact me directly with any questions, comments, or feedback.
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