Week in Review: Cryptocurrencies Show Signs of Stabilizing; Trade War Roils Global Markets
Published Join the Money Makers Club: 1 of 10 seats available. Launch June 15th. Fresh off their fourth consecutive weekly decline, cryptocurrencies have shown signs of stability in recent sessions, as bitcoin avoided a major technical breakdown and Ethereum recovered from a two-day dump at the hands of EOS. Although rally attempts are building, unusually low trading volumes are keeping the bulls at bay for the time being. // — Discuss and ask questions in our community on Workplace .
A fresh Italy crisis and the threat of trade war between the United States and its allies weighed heavily on traditional markets, with stocks ending lower for the week. Crypto Markets Stabilize
Despite being another down week for cryptocurrencies, the market has stabilized over the last three days as bitcoin and the major altcoin
The cryptocurrency market shed about $5 billion this week, although the major altcoins pared earlier declines. // — Become a yearly Platinum Member and save 69 USD.
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Cryptos bottomed near $303 billion on Monday but have since recovered nearly $30 billion in market cap. Bitcoin and Ripple were virtually unchanged week-over-week while Cardano and IOTA surged.
Among top-25 cryptocurrencies, IOTA was this week’s best performer thanks to a highly anticipated beta release of the Trinity Mobile Wallet.
With the latest slump, cryptocurrencies are down more than $140 billion from their most recent swing high.
Trading volumes have declined significantly over the past month, culminating in a fresh six-week low last Saturday. Trade War Rattles Markets
The Trump administration confirmed Thursday it was moving ahead with its plan to tax commodity imports from Canada, Mexico and the European Union (EU). The news triggered a flash exodus from equity markets in line with the post-Memorial Day drop just two days earlier.
Stock markets from New York to London ended mixed-to-lower for the week as protectionist rhetoric weighed on investor sentiment.
As a general rule, markets are averse to protectionist policies that could restrict the free flow of goods. That said, the S&P 500 Index finished in the week in positive territory thanks to strong showing Friday.
Global equity markets ended the week on a positive amid news that Italy had avoided a major political crisis (more on that below). Italy Gets Anti-Establishment Government
After being denied the ability to form government, Italy’s two main anti-establishment parties succeeded Thursday in forming a unified bloc headed by a political newcomer.
The realization of an anti-establishment government headed by Five Star and the League means Italy will not require a new round of elections this year. New elections appeared to be a foregone conclusion after President Sergio Mattarella vetoed a Euroskeptic economist from heading the country’s economy ministry, sparking Italy’s biggest political crisis since the Second World War.
Mattarella’s rationale for blocking the appointment of Paolo Savona was to “safeguard the personal savings of Italian citizens,” which he believed would have been adversely affected by a Euroskeptic minister. For many, the president’s veto was a clear obstruction and a strong sign that Brussels was in control of Italian affairs.
The Week Ahead
June is a pivotal month on several fronts: President Trump will meet North Korean leader Kim Jong-un, the Federal Reserve will in all likelihood raise interest rates and negotiations on free trade will continue. For the likes of John McAfee, the cryptocurrency market will put its rally cap back on in the coming weeks.
Crypto bulls have maintained their bullish outlook in light of the recent downtrend. Fundstrat’s Robert Sluymer believes bitcoin has found its bottom with its recent correction and that prices are poised to continue higher in the near term.
This view was also expressed by Dan Morehead, founder of Pantera Capital Management. In a recent interview with CNBC, Morehead said investors should buy into bitcoin while it’s still cheap.
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.
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( 0 votes, average: 0.00 out of 5 ) You need to be a registered member to rate this. Loading… Sam Bourgi 4.5 stars on average, based on 426 rated posts Sam 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.
You must be logged in to post a comment Login Leave a Reply Week in Review: Cryptocurrency Freefall Erases $40 Billion in Market Cap
Published Join the Money Makers Club: 1 of 10 seats available. Launch June 15th.
Cryptocurrencies headed for their third consecutive down week Friday, with some major coins shedding 10% or more.
Bitcoin and the major altcoins fell to their lowest levels in about six weeks as institutional traders awaited regulatory clarification before entering the market. // — Discuss and ask questions in our community on Workplace .
Geopolitics and strained trade relations between China and the U.S.
triggered a flight to safe havens, with gold prices reaching their highest level in ten days. Stocks finished slightly higher after Federal Reserve meeting minutes showed no urgency on the part of policymakers to hasten the pace of interest rate hikes. Crypto: The Great Unwind Continues
Cryptocurrency prices collapsed this week, with the total market cap bottoming near $326 billion as bitcoin threatened a bearish reversal and altcoins suffered a brisk selloff. By Friday, the market had recovered near $330 billion, having declined more than $55 billion from its recent peak. // — Become a yearly Platinum Member and save 69 USD. Click here to change your current membership — //
Bitcoin bottomed below $7,300, with bounces limited to the mid-$7,500 range. The world’s largest cryptocurrency saw its share of the total market rise above 38% as other coins fell.
Compared with seven days ago, BTC prices are down more than 7%, according to data provider CoinMarketCap.
Cardano was the biggest decliner in the top ten, falling more than 15% week-on-week.
Bitcoin cash plunged more than 12% and Ethereum shed 11.5%. Crypto Bulls Maintain Their Optimism
Bitcoin bull Tom Lee described the recent slide in prices as “typical market volatility” as he held firm to his long-term price forecast. Fundstrat’s head of research still believes bitcoin will reach $25,000 this year as institutional interest heats up and mining remains profitable.
Lee also reminded investors that the vast majority of bitcoin’s yearly gains are concentrated over a ten-day period. Without those days, bitcoin is down about 25% each year.
“So as miserable as it feels holding bitcoin at $8,000, the move from $8,000 to $25,000 will happen in a handful of days,” Lee told CNBC earlier this week.
John McAfee has bet on bitcoin reaching $15,000 by the end of next month, a virtual doubling of today’s prices. The technologist has also predicted huge gains for bitcoin cash and EOS. Geopolitics Drive Markets
Geopolitical tensions weighed on investors this week after U.S. President Donald Trump cancelled a planned summit with North Korean leader Kim Jong-un.
The mood improved on Friday as Pyongyang expressed its willingness to still go ahead with the meeting, which was scheduled for June 12 in Singapore.
“Very good news to receive the warm and productive statement from North Korea,” Trump tweeted Friday. “We will soon see where it will lead, hopefully to long and enduring prosperity and peace. Only time (and talent) will tell!”
Stocks resumed their slide on Friday as gold prices held near ten-day highs. Meanwhile, oil prices plunged after Russia said it was content with $60 a barrel oil.
“We’re not interested in an endless rise in the price of energy and oil,” Putin told said at the International Economic Forum in St. Petersburg, adding that Russia and OPEC do not plan to extend output cuts.
“If you asked me what is a fair price, I would say we’re perfectly happy with $60 a barrel.” The Week Ahead
After a thunderous rally in April, the month of May is shaping up to be a dud for crypto traders. It remains to be seen whether the downtrend will continue heading into June or whether a bounce back is in order. There are no major events scheduled in the cryptocurrency market next week, although developments concerning regulation and institutional adoption will continue to sway investors.
In terms of economic data, revised U.S. nonfarm payrolls and revised GDP figures will be in the spotlight next week.
The Commerce Department will also issue the latest reading of core personal consumption expenditures, the Federal Reserve’s preferred measure of inflation.
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. ( 0 votes, average: 0.
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. Sam Bourgi 4.5 stars on average, based on 426 rated posts Sam 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. Week in Review: Another Down Week for Cryptocurrencies as Consensus Summit Fails to Inspire Rally
Published Join the Money Makers Club: 1 of 10 seats available. Launch June 15th.
Digital currency prices headed for their second down week in a row, as the Consensus blockchain summit failed to spark its annual rally despite being the largest crypto event on record. Altcoins shouldered the heaviest burden of the decline, while bitcoin briefly fell below $8,000 for the first time in a month.
// — Discuss and ask questions in our community on Workplace .
Commodities and currencies were the other big stories this week, as oil prices surpassed $80 a barrel for the first time since 2014 and the U.S. dollar rose to fresh five-month highs.
Stocks struggled for direction this week, as rising bond yields and geopolitical tensions undermined risk sentiment in the financial markets.
Crypto Prices Sink
Cryptocurrencies were down as much as $20 billion in market cap over the past seven days despite a virtuous news cycle shining a positive light on blockchain adoption. The total market capitalization bottomed near $361 billion on Friday, mere days after the market hit highs above $411 billion. // — Become a yearly Platinum Member and save 69 USD. Click here to change your current membership — //
At the time of writing, crypto assets were collectively valued at $376 billion, according to CoinMarketCap.
Altcoins incurred heavy losses this week, with bitcoin cash experiencing a brisk sell-off in the wake of its most recent hard fork upgrade. Ripple XRP, EOS and Litecoin also booked losses for the week.
Bitcoin briefly fell below $8,000 Friday but has since recovered to trade around $8,250. BTC now accounts for roughly 37.4% of the total crypto market. Consensus Fails to Inspire Rally
Over 7,000 blockchain enthusiasts crowded Midtown Manhattan this week for the annual Consensus conference. The three-day event, which featured panelists from industry, government and academia, was well receive by the crypto community. However, unlike previous years, the 2018 summit failed to inspire a price rally that many had anticipated.
Bitcoin values had risen between 10% and 69% during the last three Consensus summits, leading several analysts to forecast even bigger gains for 2018.
Tom Lee of Fundstrat Global Advisors told clients before the event that Consensus 2018 will likely see a crypto-price rally that exceeds the previous three summits.
Though the event failed to generate price gains like many had predicted, the “post-Consensus” rally usually takes months to peak.
There has been no shortage of positive developments from the crypto industry in recent weeks. On Wednesday, Goldman Sachs-backed Circle announced it was launching a cryptocurrency pegged to the U.S.
dollar in an effort to streamline merchant payments through digital currency. IBM and fin-tech startup Veridium Labs have also announced a joint cryptocurrency that seeks to monetize carbon credits. Rising Bond Yields Boost Dollar
The U.S. dollar dominated the currency markets this week, as investors continued to rally behind expectations of faster rate-hikes by the Federal Reserve. The dollar index (DXY), which tracks the performance of the greenback against a basket of six currencies, reached its highest level in five months.
DXY closed at 93.
67 Friday, its highest settlement since Dec. 18.
Rate-hike expectations are firmly embedded in U.S. government bond yields, which rose this week to their highest levels since at least 2011.
The yield on benchmark 10-year U.S. Treasuries peaked above 3.1% for a gain of about 14 basis points this week. Yields rise as debt prices fall.
A stronger dollar couldn’t contain the continued rise of energy prices, as Brent crude futures topped $80 a barrel for the first time since 2014.
The international futures benchmark has added more than 12% over the past month, with recent gains driven by geopolitical concerns tied to the Iran nuclear deal.
U.S. President Donald Trump exited the nuclear deal last week, putting Iran back under sanctions.
The Week Ahead
Crypto prices have faltered for two consecutive weeks, putting investors on high alert for a possibly bigger reversal in the short term. However, the balance of news coming out of crypto space has been overwhelmingly positive, which suggests that a recovery could materialize.
Economic data, Federal Reserve speeches and the minutes of the most recent FOMC meetings will also generate market-moving headlines next week. Developments on the geopolitical front involving Iran and North Korea could also influence markets.
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: 4.33 out of 5 ) You need to be a registered member to rate this. Loading..
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Sam Bourgi 4.
5 stars on average, based on 426 rated posts Sam 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. .
