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Week in Review: Crypto Recovery Runs Into  Hurdles as Market Plummets Friday 

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Friday marked another down week for cryptocurrencies after a series of technical hurdles failed to spur the bullish revival many had hoped would materialize. Surprisingly, the market exhibited relative calm following yet another hack of a high-profile digital currency exchange.

Meanwhile, traditional markets were consumed by trade-war fears and a key production meeting of the Organization of the Petroleum Exporting Countries (OPEC). Monetary policy was also on the radar as the European Central Bank (ECB) hosted a forum in Portugal while the Bank of England (BOE) signaled that an interest rate hike could be on the way this summer.

Crypto Rally Fizzes

Cryptocurrencies lost $22 billion in combined market cap this week, though all the declines were concentrated in Friday trading.

Although there was no immediate catalyst for the Friday selloff, which wiped as much as $29 billion from the market, the declines reflect a continuation of a bearish cycle that re-emerged last month.

EOS, Ethereum and bitcoin cash were the majors’ biggest decliners after recording double-digit losses over a 24-hour period.

Bitcoin also fell sharply after the bulls failed to rally past the technically significant $6,800 level.

The biggest development of the week came out of South Korea after Bithumb confirmed it fell victim to a cyber breach costing $30 million in cryptocurrency. The attack compromised roughly 6% of the exchange’s capital.

It is not yet clear how the perpetrators pulled off the heist. Bithumb has fallen prey to multiple attacks over the past 12 months, prompting management to invest millions more in cyber security and IT staff.

OPEC Agrees to Raise Crude Production

The Organization of the Petroleum Exporting Countries (OPEC) reached a tentative agreement Friday to raise crude-oil production by around 600,000 barrels per day following high-level talks in Vienna, Austria.

The Wall Street Journal confirmed that the deal is only in principle and involves so-called effective barrels, which refers to “real” barrels that will actually reach the market. Saudi Arabia, the group’s de facto head, entered the meeting with the stated goal of boosting output by one million barrels per day.

In 2016, the cartel agreed to limit output by about 2% of global production, which at the time amounted to roughly 1.8 million barrels per day.

After a prolonged bear market for crude, OPEC’s production rollback supported a global recovery in oil prices, with Brent briefly trading above $80 a barrel last month. U.S. President Donald Trump has blamed OPEC for inflating oil prices through its production policies, adding pressure on the cartel to raise outputs.

Monetary Policy in Focus

Central-bank meetings have carried more significance as of late as policymakers in the United States and Europe seek to clarify their positions on monetary policy. This week, the Bank of England held interest rates in check at 0.5% but sent a strong signal that changes could be looming over the horizon.

Andrew Haldane, the Bank’s chief economist, joined two other Monetary Policy Committee members in voting to raise interest rates by 25 basis points following the meeting on Thursday. Although they were offset by six votes in favor of keeping rates unchanged, the split suggests that a shift in policy could be coming.

Meanwhile, European Central Bank (ECB) President Mario Draghi told a central-bank summit in Sintra, Portugal that he will take a gradual approach in raising interest rates once officials wind down crisis-era policies later this year. Last week, the ECB’s Governing Council said it would put an end to bond purchases by the end of 2018.

The Week Ahead

The crypto markets appear to have found a bottom but the near-term outlook remains shaky. This is partly owed to abnormally low trading volumes. Last weekend, daily turnover plunged to its lowest level in over two months. Daily volumes fluctuated between $11 billion and $13 billion for most of the week.

On the economic calendar, investors can expect a steady stream of market-moving data, including revised U.S. GDP, durable goods orders and core personal consumption expenditures.

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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4.6 stars on average, based on 502 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.




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Week in Review

Week in Review: Bitcoin’s Breakout Sparks $35 Billion Crypto Rally

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The rally that had eluded cryptocurrencies for the better part of two months finally materialized this week, as bitcoin and the broader altcoin universe added tens of billions in market capitalization. Bitcoin was the main catalyst for the breakout after a sudden price surge allowed it to overcome a series of technical and psychological hurdles en route to fresh five-week highs.

Cue the Crypto Breakout

The cryptocurrency market peaked just below $300 billion Wednesday following a 24-hour rally that saw more than $30 billion flow into the market.

The outburst began Tuesday after bitcoin rose 8% in the span of an hour. The largest cryptocurrency by market capitalization would eventually peak just below $7,600 as trade volumes more than doubled week-over-week. As of Friday, the bitcoin price was up more than 19% compared to seven days ago.

Altcoins also rose sharply, with Stellar Lumens adding more than 53% for the week. XLM was propelled higher by IBM’s new stablecoin project, which will launch on the Stellar network sometime in the future.

Cardano’s ADA coin was also a top performer, rising by more than a third for the week. Meanwhile, bitcoin cash and EOS saw double-digit returns.

The price rally was accompanied by an equally large surge in trade volumes. As Hacked reported earlier in the week, daily turnover on global exchanges surpassed $20 billion for the first time since May.

Coinbase and Security Tokens

Coinbase confirmed this week that the Financial Industry Regulatory Authority (FINRA) has approved a trio of fin-tech acquisitions that would eventually pave the way for security listings on the digital currency exchange. In other words, the exchange was essentially green lighted to begin offering security tokens in the future.

However, the company later clarified that it was still awaiting express permission from the Securities and Exchange Commission (SEC) before moving forward with securities listings.

While not a universal definition, “security tokens” are ICOs that the SEC believes meet the general definition of a security. Tokens that meet this definition are therefore subject to securities laws. For this reason, many ICOshave decided against listing in the United States over fear that their token will be deemed a security, thereby limiting its funding and trading options.

Approval to list security tokens gives Coinbase the opportunity to expand both the quantity and type of crypto offerings. Last week, the company announced it had short-listed five cryptocurrencies for future consideration.

Trump-Putin Meeting

U.S. President Donald Trump provoked the ire of mainstream media this week following his closed-door meeting with Russian counterpart Vladimir Putin in Helsinki.

Both leaders declared the session a success, with plans to meet again already underway. White House press secretary Sarah Sanders confirmed on Thursday that President Trump has invited Putin to Washington in the fall.

Although the meetings held minor sway in the markets, they signaled a renewed commitment to shore up geopolitical tensions between the world’s superpowers. However, it is not entirely clear what the leaders discussed in the meeting, which lasted for more than two hours. Washington’s Director of National Intelligence Dan Coats says he still does not know what Trump and Putin discussed in Helsinki.

President Trump has refused to acknowledge the intelligence community’s assertion that Russia meddled in the 2016 U.S. presidential election. Earlier this month, 12 Russian intelligence officers were indicted for hacking the campaign of Democratic officials.

The Week Ahead

For cryptocurrency traders, the past five days have marked an important paradigm shift from the months-long correction that drove bitcoin to its lowest level of the year. It remains to be seen whether the latest rally has the sustainability to bring prices back in line with the April highs or whether investors can expect more resistance ahead. Regulatory developments, including the SEC’s ruling on Coinbase security listings, could be an important price catalyst in the short term.

For Wall Street, corporate earnings are in full swing next week with several Dow industrials scheduled to report. Monetary policy developments are also on tap with the European Central Bank (ECB) set to deliver its next interest rate verdict July 26. In terms of economic data, U.S. durable goods orders and second-quarter GDP will be in the spotlight.

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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4.6 stars on average, based on 502 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.




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Week in Review

Week in Review: Cryptocurrency Rally Short-Lived as Bitcoin Price Tests Critical Support

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The cryptocurrency market continued lower over the past seven days, as bitcoin and the major altcoins failed to nurture a modest rally attempt that, last week, seemed to indicate the end of a downtrend. In bitcoin’s defense, the largest cryptocurrency by market cap has successfully maintained the $6,000 support level for two weeks running, offering compelling evidence that a bullish reversal is still in the cards.

Equity markets were rattled midweek by an escalation of trade-war rhetoric by the Trump administration, which announced plans to tax an additional $200 billion in Chinese goods. Although China has vowed to respond, Beijing’s massive surplus with the United States will limit its ability to match Washington’s tariffs dollar for dollar.

Nevertheless, trade-war risks failed to deter U.S. equity markets as earnings optimism, positive economic data and developments on the corporate merger front lifted the benchmark indexes.

Cryptocurrencies Suffer Early-Week Selloff

The combined value of digital currencies fell by more than $20 billion Tuesday, a stark reversal from the weekend, when the market reached its highest level in three weeks. There was no immediate catalyst for the reversal, which suggests that a combination of technical trading and profit-taking played a role.

Bitcoin reached a high near $6,900 last Sunday before reversing all the way back down to around $6,150 four days later, according to CoinMarketCap. Despite the reversal, the bitcoin price has successfully defended $6,000 – a critical support that represents the break-even point for miners. Bitcoin’s continued defense of this level suggests that the bulls are rallying to keep prices from falling any further.

EOS ran into fresh controversy this week after its New York block producer shed light on the network’s RAM complications.

In a Sunday tweet, EOS New York, the network’s largest block producer, said the following:

“Some Block Producers crashed when RAM usage on EOS exceeded 1GB tonight. Either they only had 1GB or they did not configure their node to properly set it at 64GB. This is a violation of the regproducer agreement. EOS New York produced on schedule. We are still confirming details.”

EOS New York later clarified the issue: “Upon further investigation we learned that this is less a regproducer violation and more a failure to adjust a default configuration on a plugin in their producing node.”

New Crypto Bills from South Korea Expected

At least four South Korean lawmakers are looking to present new cryptocurrency legislation to the National Assembly this month in an effort to fast-track regulation of the digital asset class.

As Hacked reported last month, the proposed bills seek to regulate digital currency exchanges and beef up anti-money laundering and know-your-customer guidelines. According to the Korea Times, the new bills may also provide reprieve to initial coin offerings (ICOs), a segment of the market that was banned last fall.

It is not clear whether the bills will be signed into law during the National Assembly session, which runs from July 13 to 26.

Nasdaq Notches New Record High

Wall Street’s major indexes overcame a volatile Wednesday session to finish firmly higher for the week. Technology shares continued to outperform the broader market, sending the Nasdaq Composite Index to fresh records.

On Friday, a trio of U.S. banks reported second-quarter earnings. J.P. Morgan Chase & Co (JPM) and Citigroup Inc. (C) posted earnings that were higher than expected, while Wells Fargo & Co (WFC) saw its profits sink.

The trio of bank earnings traditionally mark the unofficial start to Wall Street’s corporate earnings season. Analysts are forecasting per-share earnings growth of 20% for S&P 500 companies when measured year-over-year.

The Week Ahead

Crypto traders are in need of direction following the latest reversal. While predicting the future is always a challenge, market participants can expect subdued markets insofar as trading volumes remain thin. As Hacked previously reported, bitcoin typically requires 24-hour trade volumes of at least $4 billion to generate a sustained rally.

Hacked will be on high alert for regulatory developments in South Korea and India over the next seven days. South Korea’s National Assembly session continues next week. In India, a special cryptocurrency panel is expected to present government regulators with a draft bill any day now.

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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4.6 stars on average, based on 502 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.




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Week in Review

Week in Review: Cryptocurrency Market Breaks Downtrend as Bitcoin Price Jumps 12%

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It was another week of dramatic moves for cryptocurrencies. This time, price action was to the upside as bitcoin and the major altcoins rebounded from year-to-date lows. The gains snapped a three-week downtrend in the market. It was only the second weekly advance since early May.

In conventional markets, U.S. stocks returned to strength in a holiday-shortened week even as the Trump administration moved forward with its plan to tax Chinese goods at the border.

Cryptocurrencies Recover

Negative psychology toward cryptocurrencies showed signs of abating this week, as capital flowed back into the market after a two-month fire sale wiped $200 billion off coin values.

Cryptocurrencies tallied $33 billion this week , reaching a total of $267.5 billion on Friday, according to CoinMarketCap. The market peaked around $277 billion just two days earlier.

Bitcoin was the biggest positive influence on overall prices; the largest cryptocurrency by market capitalization surged more than 12% week-on-week, reaching a high of around $6,670.

Ethereum jumped 14% over the past seven days, reaching $473 on Friday. Bitcoin cash also added double-digits percentage-wise, rising more than 10% to $729.

Cardano was the biggest percentage gainer among the top-ten coins. ADA coin surged more than 24% to $0.142.

India Implements Banking Ban on Cryptos

An edict by the Reserve Bank of India (RBI) preventing state-regulated financial institutions from serving cryptocurrency exchanges and their users went into force this week.

India’s Supreme Court upheld the RBI’s banking ban in a hearing Tuesday after several exchanges challenged its legality. That being said, India’s government should be receiving a new draft bill very shortly, according to Department of Economic Affairs secretary Subash Chandra Garg. The bill is being put together by a sub-committee tasked with evaluating the central bank’s banking ban.

Zebpay, India’s largest cryptocurrency exchange by trading volume, announced Wednesday that it was pausing fiat deposit and withdrawal services.

Some market participants are attempting to circumnavigate the ban by converting Indian rupees into cryptocurrencies. This will enable them to fund their accounts on digital currency exchanges that facilitate crypto-to-crypto transactions.

Trade War Begins

President Donald Trump’s trade war with China was underway Friday as Washington imposed 25% tariffs on $34 billion worth of Chinese imports. In doing so, the Trump administration is enacting a plan to push back against China’s unfair trade practices, as well as theft of U.S. intellectual property. The tariffs mostly impact Chinese aerospace, IT and medical equipment.

China’s Ministry of Finance announced Friday it has enacted retaliatory tariffs of 25% on some U.S. goods.

President Trump has threatened to impose tariffs on up to $500 billion of Chinese imports unless Beijing adopts fairer trade practices. The president has also made it clear that additional levies are coming if China retaliates with its own tariffs.

Despite the announcement, U.S. stocks opened in positive territory Friday following a solid reading of June nonfarm payrolls. U.S. employers added 213,000 workers to payrolls last month, well ahead  of expectations for 195,000, the Labor Department reported Friday.

The Week Ahead

Cryptocurrency prices recovered this week, but the jury is still out on whether the latest uptrend is sustainable or merely a reflection of extreme oversold conditions. Price action over the next two days could provide important clues about what to expect next week.

In conventional markets, trade tensions between the U.S. and China will remain in focus after both nations imposed tariffs on one another. Investors will also monitor trade developments between the U.S. and European Union, as well as speculation over the future of the North American Free Trade Agreement (NAFTA).

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:

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2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
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4.6 stars on average, based on 502 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.




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