It might have been a small update, or a large one, we really have no way of knowing.
The end result is that after a June 6th update to Google’s artificial intelligence algorithms that select the news we see there’s been a massive shift in online traffic. Some websites are seeing their user stats surge to unprecedented levels while others saw their traffic plunge so deeply that they can no longer sustain the business.
One of the most reputable crypto news websites, CCN.com has been now been shut down. They’re pointing the finger of blame squarely on the tech giant whose well-known motto is “do no evil.”
Even though it’s clear that some websites gained at the expense of others, I’m not entirely sure that I buy the ‘journalistic bias narrative’ alluded to in the above article but what is clear here is that big tech companies certainly have the ability to play kingmaker in many aspects of our personal lives and businesses.
It wasn’t long ago that these companies were the champion disruptors but looking now it seems that they might well be ripe for disruption themselves.
@MatiGreenspan – eToro, Senior Market Analyst
- Tear the VIX
- Litecoin’s Fundamentals
- Bitcoin’s Transactions
Please note: All data, figures & graphs are valid as of June 11th. All trading carries risk. Only risk capital you can afford to lose.
The stock markets have been on a tear lately. By now several indices are just a spitting distance away from their all-time highest levels. Here’s a shot of the Dow Jones, which is just 3% away from breaking the latest funk.
As we’ve been discussing, the only thing that really matters are central banks and lately they’ve been extremely supportive.
That doesn’t mean investors aren’t nervous though. With all the geopolitical uncertainty and the latest jobs numbers flop last Friday, there’s plenty of reason for tension. This article explores some of the areas where tension is flaring up…
We can also see it quite clearly in the bond market, where yields have been tanking over the last few weeks.
What’s the old Buffett saying though?… Something about fearful and greedy. I forget.
It seems to me that markets are simply not pricing in risks properly. This could very well be due to the artificial suppression of interest rates over a prolonged period of time.
Some Litecoin Graphs
While the rest of the crypto markets were taking a nap yesterday, Litecoin decided to make a break for it and within moments reached a fresh high.
Many are saying that this sudden surge is solely due to the having event, which is now approximately 55 days away.
To me though, it seems like there’s a lot more to it than that. Litecoin has been a clear leader throughout the current bull run and its strong push off the lows in mid-December is arguably what kicked off this entire rally.
A large part of cryptoasset evaluation comes from the network effect. As Litecoin is the second most well-established network and has a very large and growing community it stands to reason that it is one of the leaders in the space.
Those type of things can be felt clearly on social media but we can also see a few of the strong fundamentals in these two graphs.
The first one is the transaction rate. We can see quite clearly the spike in transactions on the Litecoin blockchain during the peak of crypto summer, December 2017, but what I find more interesting is that the number of transactions remained very consistent throughout the crypto winter at around 20,000 transactions per day.
This stabilization in the transaction rate created a floor on the level of usage in this currency.
The second graph is the hashrate, which has been growing lately. Another major factor in crypto evaluation is the network’s ability to remain secure. As we can see, Litecoin’s hashrate is now at it’s all time highest levels.
At this point, the Litecoin network is second only to Bitcoin in network stability and security.
While we’re already delving into blockchain transactions today, I also wanted to show that bitcoin’s transactions rate data is now a bit more reliable than it’s been over the last few months.
As you might recall, a company called Veriblock has been using Bitcoin’s main blockchain as a method for securing other blockchains. In February, it was estimated that more 30% of all BTC transactions were actually coming from Veriblock.
Thanks to research from The Block, we now have a graph that shows the percentage of Veriblock transactions over time. At least for now, it seems that the total is less than 10% of bitcoin transactions.
This could also explain the dip that we’ve been tracking in the TPS rate, which has backed away from all-time highs lately.
Let’s have an amazing day ahead!
About the Author: Mati Greenspan is a Senior Market Analyst at eToro Connect with Mati on…. eToro: http://etoro.tw/Mati Twitter: https://twitter.com/matigreenspan LinkedIn: https://www.linkedin.com/in/matisyahu/ Telegram: https://t.me/MatiGreenspan Office Phone: +44-203-1500308 (ext:311)
Facebook Libra Risks to Financial Stability Demand ‘Highest’ Regulatory Standards, Says G7
The G7 group of nations has warned that cryptocurrencies such as Facebook’s Libra are a threat to global financial stability.
A task force set up by the G7 to examine the issues said that rules of the “highest” standards are needed to minimize the use of digital currencies in money laundering and funding terrorism, Reuters reportsThursday.
Following a meeting of finance chiefs from the G7 in Chantilly, France, this week, the group also said it would address tax issues raised by the digital economy, as per a draft summary of the meeting obtained by Reuters.
As expected, Facbook’s Libra and its perceived risks to the monetary control of regulators was high on the agenda at the meeting, although some benefits were also observed.
Benoit Coeure, European Central Bank (ECB) board member and head of the G7 task force, told the G7:
“A global stablecoin for retail purposes could provide for faster and cheaper remittances, spur competition for payments and thus lower costs, and support greater financial inclusion.”
Yet, he went on to say that such cryptocurrencies raise “serious risks” to policy priorities, such as anti-money laundering, financing of terrorism, consumer and data protection, competition and compliance with tax rules.
Bank of France governor and and member of the governing council of the ECB, Francois Villeroy de Galhau, also said that, while regulators seek to encourage innovation, “that cannot come to the detriment of the security of the consumer.” He also said more details were needed regarding gray aspects of Facebook Libra.
A piece in the Financial Times today further quotes Coeure as saying that cryptocurrencies like Libra “could also pose issues related to monetary policy transmission, financial stability and the smooth functioning of and public trust in the global payment system.”
French finance minister Bruno Le Maire echoed previous concerns over the threat to the dominance of national currencies by a token launched by a tech firm with billions of users, saying: “The sovereignty of nations might be weakened or jeopardised by these new currencies.”
The draft document from the G7 stated that “significant work” is required from developers of stablecoins like Libra before regulatory approval is likely to be granted.
The FT cites the document as saying:
“As large technology or financial firms could leverage vast existing customer bases to rapidly achieve a global footprint, it is imperative that authorities be vigilant in assessing risks and implications for the global financial system.”
Among its draft recommendations, the G7 says such stablecoins must meet the highest regulatory standards and come under regulatory oversight. A good legal basis in jurisdictions where they operate is also key in order to guarantee adequate protection for stakeholders and users.
The group further lists the need for “operational and cyber resilience” and secure, transparent management of assets to protect market integrity.
Binance [BNB], Tron [TRX], IOTA [MIOTA] Price Prediction and Analysis – July 18
Recently, BQT the new decentralized exchange offering announced Binance’s BNB token as its first listed coin, which was very surprising as most exchanges always go for BTC. BQT aims at creating liquidity by providing well-organized mix coins selected for the capability to pull in buyers and sellers.
Perhaps the BQT announcement could have boosted the price of BNB as it has led to investors gaining confidence in BNB coin. On an hourly chart, BNB/USD pair seems to have undergone a strong bullish pressure over the last 24hrs. BNB started trading yesterday at $24.5913 and has since recovered to trade at $28.4754 currently. That showed an intraday increase by 13.6%, which is considered as a significant upsurge.
All indicators indicated a bullish sign; the 7 day MA gravitated above the 21 day MA throughout the last 24hrs. The RSI indicator also moved up from a low of 33.08 to almost above the overbought level 69.81 before it slightly dipped to a low of 61.74. Notably, the RSI indicator is at the moment trading flat, that indicates a lack of momentum in the market. Increase in the pair’s price shows positive investors sentiments.
The 7 day MA is still trading above the 21 day MA that signals a further bullish rally. New target should be set at $30.00.
TRX/USD pair seemed to have also gained since it has exhibited a bullish outlook over the last 24hrs. The upward rally has also been buttressed by the 7 day MA that was seen trading above the 21 day MA.
The RSI indicator reflected the price recovery because it moved up from a low of 28.68 to a high of 61.58. That showed that the bulls had the upper hand and were in control. TRX is up by 14.8%, having moved from $0.0207 to $0.0243.
TRX saw a short-term upward rally before embarking to a steady flow that was signaled by the RSI that was seen hovering between level 70 and 50 that indicated an increase in bullish pressure. The RSI indicator is at the moment heading north showing the unwillingness of investors to go short, hoping for the better price value.
Both technical indicators are pointing toward an uptrend. The 7 day MA is still gravitating above the 21 day MA that indicates a bullish sign and the RSI heading north that indicates further upward rally. New targets should be set at $0.0250.
IOTA is also among cryptocurrencies that have experienced a Bullish Run over the last 24hrs. On an hourly chart, the upward pressure has been supported by the 7 day MA that gravitated above the 21 day MA. The pair’s price has gained by 9.3% since it started trading at $0.2652 and is currently trading at $0.2923.
IOTA/USD has a circulating supply of 2.7 billion coins over the last 24hrs. IOTA saw a short-term bullish pressure due to the presence of a bullish accumulation pattern that was seen simultaneously. This was followed by a medium-term period of consolidation that consolidated below $0.2858.
The market performance indicated by the RSI indicator is on an uptrend. This shows increase buyouts, with the RSI rising from 32.23 to 66.41.
At the moment the 21 day, MA has slightly crossed over the 7 day MA that indicated a bearish signal. Downward momentum is most likely to be seen in the next few hours. New target should be set at $0.273.
FCA Looking for Specialists in Cryptocurrencies
The United Kingdom’s regulatory body Financial Conduct Authority (FCA) is reportedly looking for candidates who have extensive knowledge related to cryptocurrencies. News portal CoinGeek reported that they would be working with the Intelligence Services Team at the agency.
The official website describes the role as one that will involve, “considerable amounts of liaison and stakeholder management with internal and external patterns on the topic of crypto assets, financial and economic crime linked themes and the role of various processes and areas in regulating this activity.”
The post said that the candidate will learn a great deal of opportunity to learn from and understand intelligence processes and work, and influence the way we support the breadth and depth of the FCA remit, including the new area of Crypto asset regulation.
This move is especially interesting, because earlier this month, the FCA was proposing rules to address harm to retail consumers from the sale of derivatives and exchange traded notes (ETNs) referencing certain types of cryptoassets.
At the time, speaking about this development, Christopher Woolard, Executive Director of Strategy & Competition at the FCA, had said, “As with our work on the wider CFD and binary options markets, we will act when we see poor products being sold to retail consumers. These are complex contracts built on top of complex assets.”
He had added, “Most consumers cannot reliably value derivatives based on unregulated cryptoassets. Prices are extremely volatile and as we have seen globally, financial crime in cryptoasset markets can lead to sudden and unexpected losses. It is therefore clear to us that these derivatives and exchange traded notes are unsuitable investments for retail consumers.”
In January this year, the FCA had released a paper on cryptoassets regulations specifically for cryptocurrency traders and the community at large.