In the latest cryptocurrency news, we are seeing big drops both in the price of Bitcoin and other tokens – as well as the prices of the global stock markets which crashed. The US, South Korea and China are among the countries which see red in their stock markets.
Since cryptocurrencies are considered as viable long-term investments (especially by millennials) they are still vulnerable to the weakening global economy and the asset class isn’t able to perform as a solid hedge against uncertainties in the market.
Historically, there hasn’t been big correlation between the crypto market and the global stock market and the traditional markets such as equities. The price movements were always independent, regardless of how the financial market performed.
Currently, the US stock market is seeing one of the worst sell-offs in history and the trade war between US and China led to a new decline in the valuation of the Chinese stock market. These weakening markets directly affected the economy of South Korea which was already in decline due to the low growth rate within the country.
As Alvin Cheung who is an associate director for Prudential Brokerage said, speaking with SCMP:
“There is a lot of negative news about the US criticising China before Trump and Xi meet next week, and that has dented sentiment. The mixed messages could be the US trying to win some bargaining chips for the upcoming meeting. Investors are on the sidelines, closely watching to see if the meeting will yield any concrete results.”
Crypto could easily become a store of value just like gold – used by investors to hedge against the global economy. The lack of liquidity and a solid infrastructure for retail traders, however, makes cryptocurrencies unable to operate as a hedging tool for large-scale investors. Hopefully this will change in the future and crypto could potentially work as an asset that has huge correlation with the global financial market
New Banknotes Help Venezuela Set A Bitcoin Trading Record
Brokerage Giant TP ICAP Opens Its Doors To Bitcoin Trading
“We want to be close to what’s happening within this nascent asset class because we believe it’s important to invest in the early stages of a growing market.”The brokerage giant TP ICAP hopes that the new bitcoin trading option will attract the new clients’ money and will diversify its offering. The company which operates as an intermediary to financial, commodity and energy markets has seen a slight slump in revenue since the 2008 meltdown. Brokerage companies like ICAP mainly make trades for its banking partners but the volumes show that the company was forced to issue a profit warning in 2018. The initiative will be conducted from London by Duncan Trenholme and Simon Forster who have plans to expand in the United States and in Asia. The ICAP services will provide derivatives trading but they won’t turn their eyes from the option to hold digital assets directly in the future. Forster admitted that the number one cryptocurrency poses a threat to traditional assets so the finance executives can’t really afford to stand on the sidelines:
“TP ICAP also understands that this technology could disrupt or impact other asset classes where we currently operate, so we feel it’s important to be informed.”The traditional finance firms are slowly getting into crypto as well. At the start of the year, Fidelity launched bitcoin custody services for their clients. The multi-million asset management company will also facilitate bitcoin trading in the upcoming months. Also as noted in some of the best cryptocurrency news sites, the Intercontinental Exchange (ICE), which is the parent company of the New York Stock Exchange is preparing to launch Bakkt which is a physically-settled bitcoin futures and custody offering. In the meantime, Nasdaq will launch its own platform for bitcoin derivatives in 2019.
Bitcoin Ignores Correction Calls: Where Is BTC Headed?
“$BTC – found resistance right at the lower cloud and has opened the weekly candle inside the cloud. This represents the highest time frame that #bitcoin has breached into the cloud…with resistance at just above $10K…”An analyst named Chonis Trading then took to Twitter with the following statement: https://twitter.com/BigChonis/status/1140410183665049603 He also added:
“One more step up the mountain as #bitcoin hits right at the 38.2% fib resistance making it the next target for the bulls to close over and also makes maintaining the 23.6 fib support that much more important for overall continuation…”As Bitcoin ignores correction calls, many believe that the $10,000 mark could be achieved very soon.
Bitcoin Hash Rate Reaches New High As Price Reclaims $9,000
Join us on Facebook
- SEC Commissioner: BTC ETF Will Be Approved When The Industry Matures
- Europol Aims To Improve Blockchain And Crypto Knowledge
- Storecoin’s Third Milestone Token Offering Launching, Ari Paul and BlockTower Capital are Early Backers
- New Banknotes Help Venezuela Set A Bitcoin Trading Record
- Bitmain Sues Three Former Employees Who Founded Rival Mining Pool
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Ethereum News3 days ago
Ethereum Will Skyrocket By 70% Against BTC: Analyst Prediction
Bitcoin News3 days ago
Bitcoin Tax Evasion Will Be Criminally Punishable: IRS Warns
Bitcoin News3 days ago
Weiss Ratings Upgrades Bitcoin From B- To B: Report
Altcoin News4 days ago
Bitcoin Wraps Around $8,200: Consolidation Could Happen Soon
Altcoin News2 days ago
Hottest Cryptocurrency Is Up 330% This Year (And It’s Not Bitcoin)
Bitcoin News4 days ago
Call Center Scam From India Steals $1.7 Million In Bitcoin
Altcoin News3 days ago
Crypterium Launches A Global Crypto Payments Card
Altcoin News3 days ago
Bitcoin’s Worth Goes Beyond $8,500, Most Of The Altcoins See Loses