TRY Fly; BTC Spike
Mati Greenspan | Jun 25, 2018 08:23AM ET
Mixed emotions as the EOS token is live for trading again but has lost a lot of its premium value.
The crypto-market has come down quite significantly since EOS began their switch from the Ethereum network on June 1st. The launch of the EOS Mainnet was supposed to take only a few days but in the end, lasted about three weeks.
Even though the launch was shaky, the decline in price is actually more or less in line with the rest of the crypto market.
In fact, over the last month, it was the least worst performer of the three tokens that are competing for the title "Ethereum Killer."
For those involved in the crypto space, the price movements are less interesting than the future potential of the technology. The question of which network will come out on top is now prevalent.
Now that EOS is online, its creator Dan Larimer has released a series of tweets disparaging the Ethereum model and explaining why he feels EOS is better than Ether. Of course, Twitter is a rather uphill battle for Mr. Larimer who has only 30,000 followers.
Today's Highlights
Trump's Tech Block
TRY Fly
.
BTC Spike
Please note: All data, figures & graphs are valid as of June 25th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Trading last week was dominated by relations between the US and China and the so called trade war. This week probably won't be much different.
The latest escalation in the tit-for-tat saga is that President Trump is now considering a block on Chinese investment in American Technology.
This puts an entirely new spin on the broadening negotiations between the world's two largest economies.
Stock markets in Asia are taking a hit this morning as they process the news. Here we can see the China 50, Hong Kong 50, and even the Nikkei 225, declining this morning.
Get The News You Want
Turkey's Fate
There was no surprise in the elections this weekend. Erdogan the incumbent took a sweeping victory and won another five year term as President.
After winning the nation-wide referendum last year, term limits have now been abolished and Parliament's role has been drastically reduced. In other words, the President is now more powerful than ever. Many believe that his next move is to raise his level of influence with Turkey's central bank.
The bank is rather worried about the high levels of inflation, and rightly so. The President, on the other hand, prefers a strategy that values economic growth over the stability of the Lira.
The Lira did get a bit stronger on the election results, though it's not clear why. Some are calling it a relief rally as some of the uncertainty has been removed. Many traders, on the other hand, are using this as an opportunity to up their Lira shorts.
Here's a long-term chart of the USD/TRY. (Remember, the chart is inverted so a move up means a weaker Lira.) The last candle (circled in purple) is the reaction to the elections. Technical chartists will no doubt point out that the classic pattern formed here is known as a "bullish hammer," especially if it closes the day higher.
Bitcoin's Spike Down
It's been a rough year so far for bitcoin hodlers. The retracement from the peak in December to the lows on February 6th, was the third largest retracement in bitcoin's history in percentage terms.
Here's a technical analysis graphic that we released at that time.
Since then, not much has changed until yesterday when the February 6th lows were taken out with a spike.
For now, the fact that the price bounced back and is now holding above $6,100 is a testament to bitcoin's resilience. Many times when a level of support is broken, the tendency of the market is to carry it lower. Though it is possible for the price to carry lower from here, the bounce back is a clear sign that there are buyers in the market.
Let's keep a watch on it for the next few days and see if it can sustain this level of support, and monitor the volumes which have been rather mellow over the last few weeks.
Wishing you a very mellow mood this week.
@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.