Risk Appetite Seems To Be Back...Just In Time
Mati Greenspan | Jul 03, 2018 08:48AM ET
Well, I suppose when you're doing it from someone else's computer, it is probably illegal. In a landmark case, the country of Japan has sent a hacker to prison for doing just that.
Allegedly, the hacker uploaded a patch to his blog site that was supposed to help people cheat at an online game. The unsuspecting cheaters would download the patch only to have their computer's resources repurposed to mine crypto.
Should gamers wish to use their PCs to mine crypto, there are an increasing number of user-friendly options to do this. The price of gaming PCs has gone up quite significantly due to the popularity of their use in mining cryptos, so if you're already considering purchasing a computer for gaming, you may as well subsidize it with a little side-hustle.
Today's Highlights
Stocks Rebound
Merkal in Hot Water
NEO Fueled Rally
Please note: All data, figures & graphs are valid as of July 3rd. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Risk appetite seems to be back in the markets this morning. Stocks are making a bit of a recovery... just in time too.
The Dow Jones had been trading below its 200 day moving average (blue line) for several days and threatened to raise some alarm bells if it fell below the 24,000 level (yellow dotted line)
The stock situation in China, on the other hand, has already crossed the line. In this graph, we can see that the China50 (blue) has been underperforming compared to the rest of the global stock markets lately.
Sister Currencies
In line with this newfound risk-on sentiment, the US Dollar is giving up some ground, especially against the Euro and the Pound. As we've discussed in previous updates, the fate of these two currencies has been bound tightly together over the last year or so.
In these two graphs, we can see the sister currencies losing ground against the buck since mid-April. It seems that we are at a pivotal point now.
Get The News You Want
Theresa May has been having a lot of closed-door meetings lately with members of Parliament and is reportedly working on some sort of Brexit deal that will please everyone. If she is indeed successful in this endeavor, it could serve both currencies well.
What Caused Yesterday's Crypto Rally?
Though many have attributed the recent crypto comeback to a new institutional service by Coinbase. As we know, markets don't move on news. They move on volumes. So let's take a closer look...
The surge yesterday happened from 16:15 to 16:25 local time, just before the opening bell on Wall Street. According to data from cryptocompare, there was a spike in USD volumes at the exact time of the surge....
Even though the spike in volumes from Japan was notably larger, it seems that the Japanese volumes actually peaked a few minutes later.
Here we can see the comparative volumes at the time of the surge marked with a black meter at the top. Notice also the mini chart at the bottom showing the entire markets volumes exploding at the time.
Though the news from Coinbase was timed pretty well with the 5% rise in bitcoin, it's not clear how much volume was actually created from this new service, how much around the news of the new service, and how much was simply a well-timed coincidence.
NEO is Ahead of the Curve
No matter what caused the spike in prices yesterday one thing is clear. NEO was way ahead of this movement.
Here we can see all of the 11 cryptos traded on eToro. The green line is NEO. Notice how it was rising steadily the entire morning and then when the surge happened, NEO exploded.
Let's have an amazing day ahead!
@MatiGreenspan
eToro, Senior Market Analyst
Disclosure: 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.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.