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Seeing the Good

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If we celebrate every piece of good news, then we must also listen to the bad. However, when listening to bad news we can always find some good. 🙂

Recently, the Polish government has issued a strong warning against Bitcoin and the entire cryptocurrency industry. Some of the things they’ve said are already known to those in the Crypto-world. Like, this is an extremely high risk market and that it is largely unregulated, as well as saying that online exchanges are dangerous and prone to hack attacks.

The good news is that they haven’t squashed the thought entirely. Two weeks ago, the largest website in the country for ordering food online called Pyszne.pl announced that they will be accepting digital gold as one of their payment methods for the 5062 locations they are partnered with.

The two main events affecting bitcoin at the moment are the pending decision on cryptos from the Indian government and the bitcoin scaling debate, wich we’ll explore below.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures, and graphs below are valid as of July 11th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview


(Click here for the full post from @NestorArmstrong)

Today is Amazon Prime day in the United States. This new All-American holiday was invented by the online retailer to cross-sell their products and put their $99 Prime service right down the throats of the public consumer.

The timing in the market couldn’t be better. Tech stocks and the Nasdaq are coming off a very shaky June and as Nestor pointed out, the summer months are critical.

In this chart, we can see Amazon shares since the beginning of the year. Circled are yesterday’s gains. The green line is the fragile Nasdaq 100.

Indeed, investors seem to be repricing everything at the moment. In fact, the recently made public company behind Snapchat just fell to it’s lowest price ever.

I even overheard on one news station that “investors feel that the company has a smaller chance of survival now that tech stocks are volatile.” Still trying to work out the correlation in my head. Seriously, what does the long-term survival of a chat messenger app for teens have to do with the stock market?

Fed Talk

I know this stuff can be quite boring but these guys are in charge of the money so if the goal is to make money, we should listen up.

Yesterday Williams said that we can expect another rate hike by the end of the year. This is more or less in line with expectations. The market is currently putting the odds of a rate hike by December at about 52%.

Today, we’ll hear from Lael Brainard. As one of the Feds largest doves, she’s likely to advocate the other half expectations and tout that inflation and wage growth is not strong enough to support another hike.

Of course, the market is far more interested in what the Head Honcho has to say. Janet Yellen will be testifying before Congress tomorrow and Thursday. Rate hikes are not interesting. We know that the Fed is on a slow but steady path to higher rates. Whether it comes in December or March is really beside the point.

What is at the top of investors minds is the $4.5 Trillion worth of financial assets that the Fed has purchased over the past decade and how they plan to unwind that mountain of money.

Scaling the Bitcoin

This is by now by far the largest pullback the cryptomarket has ever seen. If not by percentage than certainly by market cap.

The total market cap of all (812) digital assets, as reported coinmarketcap.com has come from a peak of $116.5 Billion in mid-June all the way down to less than $78 Billion today.

Forefront on the minds of alternative investors is the scaling debate that is currently playing out largely behind the scenes in the bitcoin world.

See, as the popularity of the bitcoin network grows, so does the number of transactions that need to be processed. By design, each block of the blockchain is big enough to handle about 3000 transactions. Over the past few months, thanks to popularity in Japan and other countries, we’ve seen times when this was simply not enough.

So, a decision needs to be made. Do we improve the code and make transactions smoother, or do we make the blocks bigger?

At the moment, the community is divided but the clock is winding down. On August first a solution known as BIP 148 will start to take effect. This represents the first solution, to improve the transaction protocol.

However, a solution called segwit2x is quickly gaining in popularity. This represents the second solution to make the blocks bigger, but will also improve the protocol like the first option.

At the moment, about 85% of miners are signaling that they like the segwit2x solution.

If that number goes up to 95% over the next two weeks then we will likely go to a hard fork. Meaning, that bitcoin will branch out into two different coins.

It’s almost like a stock split. So each person holding one bitcoin will keep the original coin and will be credited with an equal amount of the new coin. However, in theory, the old coin should lose its value while the new one should replace it.

The issue is that this stuff is quite complicated and most people even after explaining it, fail to understand how it works. Certainly, making the network stronger is a positive thing but getting to that point is very likely to get painful.

Let’s have an awesome day ahead!

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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4.6 stars on average, based on 133 rated postsSenior Market Analyst at Etoro.com.




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2 Comments

  1. [email protected]

    July 12, 2017 at 12:42 am

    Thank you for the article. So if a hard fork happens, then it’s likely Bitcoin will go down. What will happen with Altcoins? We can assume that they follow Bitcoin? Is it safe to keep altcoins on exchanges during a hard fork? Thank you!

  2. Mati Greenspan

    July 12, 2017 at 11:31 am

    Thanks for the compliment and thanks for the question. Of course, nobody knows how this will play out. Nobody really knows how it will affect the price of bitcoin or even what bitcoin will look like in a month from now. Certainly, nobody knows how this will affect the overall industry.

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Altcoins

Binance Listing Announcement Triggers 29% Growth For Decred (DCR)

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Yet another coin just felt the beneficial effect of a listing on Binance – the world’s largest cryptocurrency exchange by adjusted volume.

Following Tuesday’s announcement by the Binance team, Decred will be listed on the exchange starting Wednesday, October 24th.

The previous month has been one in which the power of a listing on a major exchange has made itself obvious. Just two weeks ago Ravencoin (RVN) gained a Binance listing and shot to 351% growth. Meanwhile Basic Attention Token (BAT) gained close to 50% in the last week based on the mere speculation that the Coinbase exchange would be listing it soon.

DCR/USD Surge

As you can see from the chart below, it seems very few people knew about the DCR listing until it was announced by Binance.

The early morning spike hit just as the blog post was tweeted out, and over the next few hours DCR went on to record 29% gains – climbing from a price of $38.79 to $50.35.

The coin’s trade volume increased by a factor of 2,260% as it rose from the $500,000 range up to the current sum of $11.8 million. The majority of those trades have come in the form of the DCR/BTC and DCR/KRW pairs, with Bittrex, Huobi and Upbit housing most of the action.

With the morning’s spike, DCR bypassed weekly and monthly highs, while the quarterly high of $70 is still some distance away.

The project began development in 2015, and the coin remained below the $3 price range for nearly two years, up until it was carried along with the rest of the market in 2017’s surge.

Binance Picks Up Decred

The Binance blog post published on Tuesday morning states:

“Fellow Binancians, Binance will open trading for DCR/BNB and DCR/BTC trading pairs at 2018/10/24 04:00 AM (UTC). Users can now start depositing DCR in preparation for trading.”

The Decred team on Twitter followed this up with a celebratory tweet thanking Binance and its founder CZ for the listing on the exchange:

“Thank you @cz_binance & @binance, we’re honored to have $DCR listed on your exchange!”

Binance’s own informational on Decred emphasizes its use as a transactional currency, and notes that the coin will never experience the issue of having to hardfork, stating:

“Decred is similar to Bitcoin. There will only be 21M coins created, ever. The big difference: Decred uses advanced and innovative technology that solves blockchain governance. No hard forks needed. Exchanges will never have to deal with customer requests for splits. The general public will never have to sift through contentious forks or be fooled by claims of a “better Decred.”

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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4.4 stars on average, based on 82 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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XRP Price Analysis: Reports Indicate National Bank of Kuwait (NBK) is Set to Go Live With xCurrent

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  • Sources suggest National Bank of Kuwait (NBK) are moving closer to going live within Ripple’s xCurrent solution.
  • Despite current XRP/USD selling pressure, a bullish technical set up is still seen as a potential.

National Bank of Kuwait Ready to Use xCurrent

One of the largest banks in the Middle East, National Bank of Kuwait (NBK), is readying to move forward with xCurrent. It is reported this could be in place within the next few weeks. xCurrent is Ripple’s enterprise software solution that facilitates banks to instantly settle cross-border payments, providing end-to-end tracking.

The latest suggested is that the NBK are currently awaiting to receive the green light from the Central Bank of Kuwait. Sources close to the matter, are said to note that NBK are currently preparing for its first transaction with the xCurrent solution. In terms of time frame, the suggestions are for the back end of October, or by early November. These sources are being cited by the newswire, Crypto Briefing.

Earlier this year, in May, the National Bank of Kuwait mentioned Ripple via their official Twitter account. They tweeted, “NBK leads the way in Kuwait in a partnership with RippleNet to offer instant cross-border payments to customers Ripple.” Nothing further on this, from either the NBK or Ripple was noted.

It is important to note that the xCurrent solution does not use XRP tokens, unlike xRapid, which enables banks to send payments using XRP. It can then be transacted back into the appropriate fiat currency by the receiver. On the basis of the above noted, it is likely to have a direct influence on the value of XRP.

Technical Review – 4-hour Chart

XRP/USD 4-hour chart

Despite the consistent downside pressure observed with XRP/USD, a potential bullish technical set up can still be eyed. As seen on the 4-hour time frame, price action has been moving within a bullish flag pattern. The lower support has recently been penetrated by the market bears.

Near-term support eyed immediately at $0.4660-40 area, the below trend line. Further south, a demand zone is seen running from $0.4535 down to $0.4350. This was an area that caught the price during some hard selling at the back end of September. Bulls managed to kick started a recovery at this low area on 25th September. Should this technical set up fail to play out, eyes will then be on $0.4000 for support. Last traded down here on 15th October. Lastly, looking at resistance, this is seen just ahead at $0.4650, upper trend line of the flag. Ahead, there is heavy supply heading into and within the $0.5000 territory.

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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4.5 stars on average, based on 33 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Investors Reward Nexo for Adding XRP-Backed Loans

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Crypto-backed lending startup Nexo is being rewarded by investors for adding loans collateralized by the third biggest cryptocurrency XRP. The company made the announcement in a blog post, saying support for XRP was in response to demand stemming from the blockchain community.

NEXO advanced by double-digits in today’s mixed crypto market before trimming those gains somewhat. Investors may have sensed an announcement was on the horizon, as Nexo, which boasts a market cap of $76.5 million, has been on a tear in October and has seen its value increase by more than one-third for the week and 160% over the last 30 days. Most of today’s trading is unfolding on Hotbit in the ETH and BTC markets. Despite the recent gains, the NEXO price, which is currently hovering at $0.13, has not gone unscathed in this year’s market downturn and traded as high as $0.40 in May 2018.

Source: CoinMarketCap

Competitive Landscape

According to Nexo in the blog post –

“Nexo continues to push the boundaries within the crypto-lending space by becoming the first lender ever to start accepting XRP as collateral for crypto loans.”

XRP, which is majority- owned by Ripple, is a popular choice and it joins a list of nearly two-dozen cryptocurrencies supported by Nexo including bitcoin, Ethereum, Zcash and many more. The XRP price, meanwhile, is currently down 2% to $0.45 with a market cap of $18 billion, more than $2 billion below No. 2 cryptocurrency Ethereum. Last month, the XRP price added 70% to its value, but October hasn’t been as kind.

In addition to XRP, Nexo also revealed a partnership with Goldman Sachs-backed Circle’s new platform CENTRE, announcing plans to offer loans backed by the new USD-backed cryptocurrency USD//Coin (USDC). Earlier this month, when Tether fell out of favor with investors, Nexo said it was exploring the addition of more stablecoins, adding that it has “never held significant amounts of Tether (USDT) on its balance sheet.”

Investors have proven to reward lenders for the expansion of the platform into new coins. Last week, rival crypto-backed lender SALT Lending (SALT) announced its support for loans collateralized by one of this year’s best performers, Dogecoin (DOGE). Since then, SALT coin has risen more than 30%. Crypto-backed lender BlockFi, meanwhile, issues loans backed by Gemini Trust’s recently launched stablecoin Gemini Dollar (GUSD).

Blockchain startups aren’t afraid to tease upcoming announcements, giving traders the opportunity to be in a position to potentially benefit from the news. Binance CEO CZ tweeted today on the heels of the exchange’s expansion into Uganda that he’s “got one more piece of good news coming soon,” which he pointed out generated more “likes” than the Uganda tweet.

As year-end approaches, the total value of the cryptocurrency market is currently below $210 billion.

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 70 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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