Connect with us

Bitcoin

Stocks Money is Flowing into Bitcoin

Published

on

Despite what is looking to be an outstanding earnings season on Wall Street, stocks yesterday took a major hit. At the same time, Bitcoin and the other cryptocurrencies soared.

// -- Discuss and ask questions in our community on Workplace.

It’s not that it’s unusual for Bitcoin and the Dow Jones to move in opposite directions. In fact, it happens quite frequently. What’s interesting here is that the volumes of the Bitcoin futures on Wall Street saw a major spike yesterday.

The CBOE futures contract that expires on May 16th has been trading between 1,700 and 4,000 Bitcoins over the last week. Yesterday it traded a total of 6,653 BTC.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The CME contract (expiring this Friday) usually trades less than 15,000 coins, saw the volume spike up to 23,405 Bitcoins. This means that between the two exchanges yesterday’s volume was more than 60% above their weekly averages.

Though it’s still a bit early to draw concrete solutions, this does seem to indicate that at least some of the money that came off the stock market yesterday ended up in the world’s favorite cryptocurrency.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Trumpcron
  • Fed Research on Bitcoin
  • Ethereum Hacked

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

Traditional Markets

It was interesting to watch the awkward body language between Donald Trump and his French counterpart over the last three days. However, even though the pair now appear to be friends, it doesn’t seem like much has been accomplished as far as any substantial policy change. At least, nothing that would improve the mood in the markets.

At the moment, the US Treasury Secretary Steve Mnuchin is on his way to China to see what he can do about avoiding an all-out trade war. This is typically something that the Secretary of State takes charge of, but with Rex Tillerson out of the picture, the Trump White House appears to be a bit understaffed.

One thing that seemed to cause some worry in the stock markets and may have been a catalyst for at least some of the selling was the Bond Yields, which spiked up early in the New York trading session.

Here we can see the US 10 Year Yield since the financial crisis. That 3% level has been a psychological pain point that has not been crossed since 2011.

Fed Research on Bitcoin

This research really speaks for itself but I did want to mention this outstanding report that was just published by the Federal Reserve Bank of St. Louis.

It gets a bit complicated but their general conclusion seems to be that Bitcoin is a very good middle ground between governments who have the obligation to control money flows as best they can and citizens who have the incentive for money to be more independent.

I must admit that it did take me a few minutes to wrap my head around this graph but once I did it really makes a lot of sense.

It’s really incredible to see such outstandingly positive research coming from a central bank in the United States. This really fits into the narrative that I’ve personally been advocating for a while now, that Bitcoin should be an excellent compliment to the current global monetary system.

Ethereum Hacked

A few of Google’s servers fell yesterday causing a disruption in Internet service in some parts of the world.

This is not all that uncommon and the incident is still being investigated. The bigger issue is that it seems some hackers managed to exploit the downtime to hijack MyEtherWallet.com (MEW)

MEW is the main website that many crypto enthusiasts use to store their Ethereum and Ethereum based tokens, so this is kind of a big deal. Some people who tried to access the website at that time were redirected to a lookalike phishing site that then gathered their login information (private keys) and emptied their wallets.

Word quickly spread throughout the cryptowebs and a patch was quickly released. All in all, it seems that only 216 ETH was stolen.

This is a reminder that in these early days of crypto and blockchain we must remain alert. Always check the URL of the website you’re visiting and if you do see any security warnings like the one below, please do not ignore them.

The crypto-market was in the thrall of a raging bull run but it does seem that the hack may have stopped it in its tracks. The initial reaction in Ethereum (yellow circle) was quite small…

…but it does seem that this morning we’re seeing a wider pullback across the board this morning.

Over the next few hours, we should be able to get a good test of cryptotrader sentiment and see how dedicated they are to buying the dips.

Have an amazing 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.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,
Mati Greenspan
Senior Market Analyst

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
5 votes, average: 5.00 out of 55 votes, average: 5.00 out of 55 votes, average: 5.00 out of 55 votes, average: 5.00 out of 55 votes, average: 5.00 out of 5 (5 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 85 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Altcoins

Cryptocurrencies Rebound 8% from Recent Low as Tom Lee Gives Post-Consensus Takeaways

Published

on

Cryptocurrenc prices have begun the week on a positive note, as bullish sentiment returned to the market following an underwhelming reaction to the Consensus blockchain summit.

// -- Discuss and ask questions in our community on Workplace.

Crypto Prices Rally

Bitcoin and the broader altcoin universe booked solid gains Monday. The combined value of all cryptocurrencies peaked at $392 billion, according to CoinMarketCap. At time time of writing, the total market cap was worth $389.6 billion.

Prices bottomed near $361 billion on Thursday, their lowest level of the month, in the wake of a high-profile blockchain event.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The ten largest cryptocurrencies by market cap rose by at least 3% on Monday. Tron was the biggest gainer percentage-wise, adding 12.7% to $0.077. Bitcoin cash (BCH) jumped 8.1% to $1,275 following a double-digit selloff last week. Cardano and Stellar each rose more than 4%.

Bitcoin rose 3.1% to $8,493. Its share of the overall market slipped to 37.2% from a high of around 37.6% last week.

Trade volumes have been relatively thin over the past 24 hours, with turnover amounting to $16.8 billion. Crypto trade volumes averaged around $21 billion at the end of last week. During the height of the bull rally earlier this month, daily turnover exceeded $30 billion.

Tom Lee Remains Bullish on Bitcoin

The head of research at Fundstrat Global Advisors admitted recently that his Consensus price forecast missed the mark.

In an interview with CNBC that appeared Friday, Lee said his firm was “overly optimistic” about the potential for a bigger Consensus price rally but nevertheless reaffirmed his bullish outlook on bitcoin.

“While there was not a Consensus bump, our conviction on crypto-currencies strengthened during the conference,” he said. “It’s the people that you know are important to this industry coming together.”

Prior to the event, Lee had predicted significant gains for bitcoin and other crypto assets. His reasoning was rooted in the last three Consensus summits, which sparked an immediate rally for digital currency prices.

Bitcoin prices declined sharply during the blockchain conference and eventually bottomed below $8,000 – a figure not seen in a month.

In Lee’s view, the Consensus rally did not happen for three underlying reasons: regulatory uncertainty, acceptance hurdles within banks and a lack of institutional custodial tools for mass adoption.

He added:

“Bitcoin doesn’t have to go up every day to move from $8,000 to $25,000. The ten best days account for all the return of bitcoin in a year. If you didn’t own bitcoin for ten days each year, you lost 25 percent each year.”

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 5 (3 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 406 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Ethereum Back Above $700 as Coins Rise but Buy Signals Still Lacking

Published

on

The major cryptocurrencies are all sporting gins today, with Ethereum, EOS, Stellar, and Monero leading the way higher percentage-wise. Despite the rally, the short-term technical setup is unchanged in most cases, with the top coins still on neutral trend signals, and with no buy signals having been triggered just yet.

// -- Discuss and ask questions in our community on Workplace.

From a technical standpoint, Ethereum is still clearly the coin to watch, as the price of the ETH token rose back above $700 today, showing relative strength yet again, getting close to a short-term buy signal.  While a signal is not confirmed yet, a break out from the bullish corrective pattern could be near.

ETH/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The coin faces strong resistance between $735 and $780, with targets above that at $845 and $900, while support is found between $625 and $645 and between $555 and $575. We still advise traders to wait before entering new positions here, even as the correction lows are likely in.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still stuck below the key $8400-$8700 zone after it hit another marginal new correction low near $7900. Although BTC is not a buy signal, the downside momentum is fading and the coin could be close to a breakout of the correction pattern, despite its recent relative weakness. Strong support is still found between $7650 and $7800, while resistance is ahead between $9000 and $9200, $10,000, and $10,500.

New Leadership yet to Form

IOT/USD, 4-Hour Chart Analysis

While the leaders of the April rally are trading consistently with an ongoing uptrend, for now, there are no standout performers spearheading the rally among the majors. EOS is still holding up above the $12 while the other prior leader IOTA is also trading above key support at $1.7 but without clear bullish momentum. Should the coin move above the $1.9 resistance, the short-term trend signal would switch to buy, but as of now, the corrective pattern is intact.

As the long-term charts are looking more constructive after the pullback, long-term investors could soon be looking for entry points,  while traders could also get buy singles in the coming days.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 5 (3 votes, average: 4.67 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 253 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Remains Under Pressure as Divergence Deepens

Published

on

The segment has been drifting lower in a choppy fashion ever since our latest look at the long-term charts and the two-faced nature of the market is still apparent. Bitcoin and the other relatively weak majors, like Litecoin, Monero, Dash, and NEO are clearly lagging the leaders from a technical standpoint, while Ethereum is still the most positive out of the largest coins.

// -- Discuss and ask questions in our community on Workplace.

The leaders of the rally are still holding up above the crucial support levels, keeping the recovery intact but as the overbought long-term readings are mostly cleared, the coins should start to show signs of bottoming soon. For now, we advise traders and investors to remain on the sidelines in the case of the majority of the coins until the short- and long-term time frames show conflicting trends.

BTC/USD, Daily Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Bitcoin didn’t reach a severely overbought momentum reading as the move above $10,000 failed, and the coin started a correction off that level and dropped below the $8400 support in the process. The short-term corrective pattern is intact, while the long-term MACD is in neutral territory again.  Key long-term support is found just above $7650 and in the $6150-$6250 zone while further resistance is ahead between $9000 and $9200 and near $10,000.

ETH/USD, Daily Chart Analysis

Ethereum is holding up above the $625-$625 support zone, within a short-term correction pattern, while the long-term momentum indicators are still above neutral territory. The trend signals are neutral in case of the second largest coin, and traders and investors should wait before entering new positions. Resistance zones are ahead between $735 and $780 and near $845, while support is found between $555 and $575.

(more…)

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
7 votes, average: 5.00 out of 57 votes, average: 5.00 out of 57 votes, average: 5.00 out of 57 votes, average: 5.00 out of 57 votes, average: 5.00 out of 5 (7 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 253 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending