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Week in Review

Week in Review: Cryptocurrencies Reach New Lows for the Year as Bitcoin Breaks Below $6,000

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The cryptocurrency market on Friday reached new lows for the year, as bitcoin made a definitive break below the psychologically significant $6,000 level. The major altcoins led by Ethereum, Ripple and bitcoin cash also headed for fresh declines as bear-market headwinds continued to sway price action.

While investors have been unable to find reprieve in prices, they should take solace in the fact that the cryptocurrency market appears to be making progress in terms of regulation and institutional adoption. Case in point: South Korea and Malta have taken definitive steps to bolster their domestic crypto industries.

Crypto Bear Market Hits New Low

A week of relative calm for cryptocurrencies came to an abrupt end on Friday, as the market plunged to its lowest levels since November.

The breakdown appears to be have been driven by technical trading as bitcoin found acceptance below a key support zone. Comprising more than 43% of the market, bitcoin’s decline dragged altcoins along for the ride. The market capitalization fell below $233 billion, exceeding last week’s swing low of around $237 billion.

Bitcoin fell sharply below $6,000 but was spared a new low for the year after the market defended the $5,800 level. Last weekend, the largest cryptocurrency by market cap bottomed around $5,755 on major exchanges.

Over the past seven days, bitcoin has fallen nearly 7%. The remainder of the top-ten cryptocurrencies (with the exception of Tether’s USDT stablecoin) recorded double-digit losses over the past seven days.

EOS has lost roughly half its value over the past four weeks amid a difficult transition to the newly launched mainnet. Meanwhile, Ethereum can be had for around $410, its biggest discount since April.

Ripple XRP is trading at its lowest level of the year. Bitcoin cash is currently valued at its lowest since early April.

Regulatory Clarity

South Korea and Malta this week laid out important regulatory guidelines for digital currency exchanges, ICOs and other blockchain-based companies.

The Maltese government passed three separate blockchain-based initiatives on Tuesday aimed at strengthening regulation and encouraging crypto-market development. The tiny Mediterranean nation has been dubbed ‘blockchain island‘ for its favorable policies toward the emerging sector.

The approved bills include the Virtual Financial Assets Act, the Innovative Technology Arrangements and Services Act and the Malta Digital Innovation Authority.

Meanwhile, South Korea announced new guidelines to government cryptocurrency exchanges in the wake of multiple cyber attacks earlier this month. The new rules, which are aimed at strengthening anti-money laundering and know-your-customer guidelines, bring digital currency exchanges outside the realm of “communication vendors” and into the arena of regulated financial institutions.

Stocks and Volatility

Volatility made a stunning return to Wall Street Monday as concerns over a global trade war ignited a panic sale in equities.

The CBOE Volatility Index, also known as the VIX, surged more than 25% to its highest level in three-and-a-half months. Vol would test new intraday highs later in the week.

Stocks managed to recover some lost ground after President Trump’s trade team convinced markets they will not be singling out China in their battle against intellectual property theft. A report by The Wall Street Journal last weekend suggested the White House was planning to bar Chinese investors from owning a stake in U.S. technology companies.

The Week Ahead

For cryptocurrencies, the search for an elusive bottom continues this week as bitcoin and the major altcoins struggle to regain their footing. Perpetually low trade volumes and the lack of new buyers could make this a difficult task.

In conventional markets, economic data will be in the spotlight as the U.S. Labor Department unveils its monthly jobs report. Equity traders are also gearing up for corporate earnings season, which is scheduled to get underway in a few weeks’ time.

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 498 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 498 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.

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4.6 stars on average, based on 498 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: 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.

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.
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 498 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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