Others mirrored the sentiment behind a temporary fresh downturn, with the altcoin trader known on Twitter as Squeeze forecasting that “bears are likely to take over for a few days.”
Bitcoin’s turbulence continues to have a more profound effect on altcoin markets. A glance at the top 50 assets tracked by Coinmarketcap shows declines in line with Bitcoin but around 30% steeper in the past 24 hours.
Ripple, Bitcoin Cash, Litecoin and others in the top ten all lost around 13%.
Sore Losers Wait For Cashout
“This rebound took a lot of pressure off of BTC owners, but we will start running into overhead resistance,” Jani Ziedins of Cracked.Market meanwhile said in a research note quoted by MarketWatch.
“Many premature dip-buyers jumped in between $12k and $15k and we should expect many of those regretful owners to sell when they can get their money back. Their selling will slow the assent over the near-term.”
The lackluster performance of Bitcoin so far in 2018 has also served to temper the outlook for some of the community’s most ardent proponents.
Ronnie Moas, who led the charge of the bulls during the all-time highs in December 2017, most recently stated the likely finishing point for BTC/USD at the end of this year would now be around $28,000 – nonetheless a record high in itself.
What do you think about Bitcoin’s price dip? Let us know in the comments section below!
With more people entering the crypto markets than ever before, the seeds of fear, uncertainty, and doubt has a greater impact on price volatility. Newbie traders jumping in and out on the whims of social media hype, and then panic selling, causes what happened over the past couple of days. However, looking at historical crypto charts, this January dip is nothing new.
There are a number of reasons why the markets crash in January, and many originate in Asia where the bulk of crypto trading occurs. According to Coinmarketcap, which no longer includes South Korean exchanges, the total market capitalization of all cryptocurrencies fell from $750 billion to $420 billion in four days. At the time of writing, they have since recovered and are on the way back up again, currently sitting at a total of $575 billion.
FUD vs FOMO
Reason #1: A lot of the impetus for crypto price action comes from Asia where the news has not been good in recent weeks. China is constantly trying to quash the entire industry, and South Korea just can’t make its mind up with regulatory hype and clampdown fearmongering emerging on an almost weekly basis. The FUD is as infectious as the FOMO, and panic selling over the past few days has sent all coins into freefall, with some losing as much as 40%.
Looking back on historical Bitcoin charts reveals that a January selloff has happened before, several times in fact. Bitcoin is the gold standard for crypto, and a lot of the altcoins did not even exist back then.
Reason #2: It has been speculated that one factor causing this is the Chinese Lunar New Year, which usually falls in February. It is a time of year when people take time off work and travel to visit family, and for this, they will need fiat, not crypto. Since nations in Asia are responsible for the lion’s share of crypto trading, it stands to reason that this could contribute to the annual selloff.
Reason #3: Another factor could be the end of the tax year approaching where investors are planning to pay their annual taxes. Again this has to be done in fiat, not crypto. While not the only catalyst, it could have some influence over price action.
Reason #4: The ending of the first ever Bitcoin futures contract may also have contributed to traders shorting the asset. Once the big players, such as CBOE and CME, get involved, smaller markets can be manipulated by the institutionalized investors, and we could see more of this action until things stabilize.
Reason #5: As more new and inexperienced traders enter the market, these chart oscillations will amplify. Only when they realize that this is a natural cycle and crypto is not dead will things settle down a little. Since total market investment in cryptocurrencies has jumped over 2500% in less than a year, we are still at very early stages of what could be a game changing industry.
Did you panic sell your crypto or hodl it? Share your experiences below.
Images courtesy of CoinMarketCap, Bitcoinist archives, and Pixabay.
Bitcoin seems to be the knight in shining armor for countries suffering distress due to corrupt governments and volatile economic climates.
Bitcoin’s race to the top of the crypto charts has been filled with record-breaking prices, mainstream integration into the financial industry, and overall sitting-on-the-edge-of-your-seat excitement.
In waiting for the currency to reach the next price milestone, it may be easy to forget what it’s actually there for. Even though it may have a somewhat infamous reputation as being the preferred medium of exchange for shady deals, Bitcoin’s goal is to completely revolutionize and disrupt the global economic industry.
Bitcoin Offers a Welcome Respite From Corrupt Institutions
This is especially true in emerging markets, or in countries where the political and socio-economic sectors are fraught with corruption and an iron-grip control on finances. In addition, it could be the potential answer to the huge problem facing the unbanked population.
According to the Wall Street Journal, crypto users in Sudan, Kenya, and South Africa are fast latching on to Bitcoin as a lifeboat while navigating the choppy waters of economic uncertainty in their respective countries.
Circumventing Sanctions in Sudan
Mohammed Mahgoub, who is a Sudanese web developer and early Bitcoin fan, had this to say:
The main attraction in Bitcoin is the ability to transfer money without any restrictions or going through a bank, this was very important as there were US sanctions imposed on Sudan.
The country has been subjected to financial sanctions for nearly 30 years, negatively impacting cash outflow and making the purchasing of international imports extremely difficult. In addition, because it is seen as a sponsor of terrorist activities, the country is still on the blacklists of most Western banks.
A Facebook group called Bitcoin Meetup Sudan consists of a range of members hoping to learn more about the cryptocurrency. One member wants to raise funds for her NPO by using Bitcoin, while another wants her dowry to be paid in bitcoins.
On the flip side of the bitcoin, financial institutions in developed countries have cautioned people on the risks of using digital currencies as they are not backed or supported by a bank or by the government. However, this is the exact reason that cryptocurrencies have become so popular in emerging markets as it cannot be controlled by untrustworthy authorities.
Arnaud Masset, an analyst at Swissquote, which is a brokerage offering Bitcoin trading to retail clients, further explained:
Buying cryptocurrencies is seen as a protection by people who have been constantly disappointed by central banks and politics.
Masset went on to add:
When conventional money fails, Bitcoin wins.
Masset also touched on using virtual currencies as a way to alleviate sanction stress:
It’s a convenient and fast way to skirt sanctions.
The supply-and-demand principle is clearly evident with the super crypto. Because its demand is so high in developing countries, its price is well above the global average. On some exchanges in Zimbabwe, like Golix, one Bitcoin traded at $22k, compared to the $15k it was trading at on CoinDesk.
Bitcoin Finds South African, Brazilian, and Kenyan Fanbases
eToro reported that phenomenal increases in Bitcoin usage were seen in South Africa and Brazil in 2017, with trading in the former increasing by 671% over less than a year. This massive growth was likely as a result of the country’s president axing the well-respected former Finance Minister, Pravin Gordhan. The South African rand was also downgraded to junk status by S&P Global Ratings in November last year.
Mati Greenspan, an analyst for eToro, stated that Bitcoin usage grew in Brazil as a result of ongoing corruption involving both the country’s former and current presidents.
Kenya is another country experiencing massive Bitcoin growth, 1,400% in 2017 alone. They use the currency to place bets, and people even use it to pay for and gain access to services not available to Kenya, such as Spotify AB.
Smartphone Growth Is a Silver Lining Despite the Dark Cloud of Volatility
However, the currency’s volatility is a real problem in these developing countries. Being in a somewhat precarious position financially can be even more frightening when your Bitcoin investment is losing value every hour, as was the case with the currency’s price correction last month.
Digital currencies may be increasing in popularity in these countries, but they still have a long way to go before being adopted as a common medium of exchange. However, the growing smartphone market in Sub-Saharan Africa is a positive factor in a faster integration. According to GSMA Intelligence, this growth is predicted to happen at a rate of 50% faster than the global average over the following five years.
Do you think emerging markets will continue to increase their usage and adoption of digital currencies? Would this result in more aggressive regulation efforts by the governments in these countries? Let us know in the comments below!
Images courtesy of Pixabay, Pxhere, and Bitcoinist archives.
trade.io has a vision to revolutionize the financial industry, recognizing that in 2008 the world economy nearly collapsed, arguing that it was not due entirely to recklessness and a lack of transparency, but also because the financial sector had failed to keep up with innovation.
The team behind trade.io sees that little has changed since 2008, nor have lessons been learned. Investors are at the mercy of high fees and low liquidity and, with transparency still lacking, even third-party verification suffers from conflicts of interest. trade.io aims to disrupt the current financial establishment and lead it forwards with honest and fair trading, conducted and recorded on the secure and transparent blockchain.
trade.io’s one-of-a-kind trading and financing platform goes beyond cryptocurrency assets, also offering Forex and CFDs over precious metals, oil, commodities, indices, and global equities. At launch, they plan to feature more than 120 products on their platform.
The Trade Token and ICO
In order to facilitate a new trading platform, trade.io will introduce the Trade Token (TIO), a utility token that enables transactions of a wide range of assets, which also acts as a medium of exchange and as a store of value.
One of the main benefits that trade.io will be offering investors is access to what they are calling the liquidity pool, where owners will be given the opportunity to contribute an amount of their stored assets to a P2P liquidity pool. From this pool, 50% of the daily revenue generated by trade.io will be paid to owners in the pool although a minimum of 2500 Trade Tokens will be required to qualify for this benefit.
Trade.io will be issuing 500 million Trade Tokens, of which approximately two thirds will be made available for the crowdsale. Their ICO will run from the December 7th until the 4th of January 2018, and any unsold tokens will be destroyed at the end of the crowdsale.
Allocation of the tokens will be in the following areas;
23% for acquisitions and IP’s,
20% for licenses,
20% for operations,
18% for the liquidity pool,
7% for development,
9% for seed and venture fund,
3% reserved for legal, audits and advisory purposes.
trade.io has completed their pre-ICO successfully, raising over $11.3M from over 4,000 participants. According to icoscanner.io, trade.io is currently the 5th most successful ICO in Ethereum contributions.
trade.io’s Experience and Partnerships
trade.io’s team have over 20 years of experience in trading, investment banking, compliance and risk management. They have formed strategic partnerships with a number of companies in the cryptocurrency and blockchain spaces, including:
Civic, whose technology will be used for identification and verification purposes;
MODULAR, whose new Biosym framework decreases ICO processes by 85% on the Ethereum Network;
HitBTC, the London based exchange has agreed to accept trade.io Trade Tokens. trade.io will announce shortly when the Trade Token (TIO) will start trading. TIO will have trading pairs with Bitcoin and Ethereum;
Bancor, whose protocol will allow trade.io users to convert Trade Tokens (TIO) to any other ERC20 token.
Paul Clarkson, CPO of HitBTC had the following to say:
“It’s no secret that HitBTC is extremely selective in the tokens & coins we list, we have strict criteria and require an extensive amount of due diligence prior to extending an offer. trade.io has proven to be a trusted partner and we are pleased to list TIO, and start a long-term relationship.”
As well as partnering with other high profile and innovative companies, trade.io also purchased the US regulated broker-dealer (BD) in an effort to focus on US regulatory compliance.
William Heyn, trade.io’s VP of Capital Markets, explained:
Being able to conduct trade.io’s business in the United States in a regulatory compliant manner is critical. The broker/dealer will afford us with tremendous opportunities and unlock many sources of revenue potential.
One of the newest partnerships forged by trade.io is that with Bancor. By integrating the Bancor protocol with their own platform, trade.io users will be able to convert their TIO tokens to any other ERC20 token in the Bancor network at an automatically calculated price. Of the new partnership, trade.io CEO Jim Preissler commented:
We continue to deliver to the trade.io community unique value-added propositions, and see this relationship with Bancor as a further example. We already have generated a large demand for our community and it’s only logical to provide a simple way to convert tokens.
Investment in Education and the Future of Blockchain
trade.io recently announced that they had funded two post-doctoral seats at the University of Nicosia with a specific focus on advanced research into Distributed Ledger Technology. Research will help develop and implement future updates regarding side-chains and cross-chain interoperability, as well as smart token corporate governance in an effort to develop best practices and implementations.
Preissler spoke with Bitcoinist about the company’s educational support at the University of Nicosia:
This is a major development for us, it provides trade.io with access to some of the brightest and most innovative minds in blockchain and digital currency. The University of Nicosia has embraced blockchain technology since 2013, they were the first university in the world to offer coursework and an accredited academic degree program in this field (MSc in Digital Currency) and are considered a global leader in academia in this area.
How will trade.io change how people invest not just in digital assets but in traditional assets as well? Let us know your thoughts in the comments below.
Images and media courtesy of University of Nicosia, trade.io
Bitcoinist does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions related to the company.
The continuing frenzy surrounding Bitcoin has a number of analysts and economists worried even as global financial institutions are starting to actively participate in the crypto world.
2017 has been a banner year for Bitcoin and other cryptocurrencies. Last week saw Bitcoin race from $14,000 to over $18,000 in a few hours before coming back down to earth at just over $15,000. While many financial experts are predicting that Bitcoin will soar even higher in 2018, there are a number who are a little more gloomy. The latest member of the Gloom Club is Torsten Slok, an economist with Deutsche Bank, who believes that a Bitcoin crash could endanger global markets.
Bitcoin Making the List … of Market Risks
Bitcoin has been riding high this year, and the launch of futures trading is driving interest to a fever pitch. The CBOE website actually crashed yesterday as it couldn’t handle the massive influx of traffic. One wonders if CME will beef up their site when they launch their own Bitcoin futures exchange next week.
Of course, not everyone is tickled pink by the increasing influence of Bitcoin and cryptocurrency. Torsten Slok of Deutsche Bank has issued a warning about the ramifications of a Bitcoin crash in 2018. Slok released a list of 30 market risks that could impact global markets, and a Bitcoin crash came in at lucky number 13. This places Bitcoin behind German wages and inflation but ahead of Brexit developments and the Russian presidential election.
How Bad Would a Bitcoin Crash Be?
A total Bitcoin crash would be devastating to a lot of people, but it may not have the global impact that Torsten Slok envisions. One such reason not to fret is that of scale. The total market cap for all cryptocurrencies is $436 billion at the time of this article’s writing. While a tremendous amount of money, it does pale in comparison to other economic factors. The housing market in the United States alone was estimated to be almost $30 trillion back in 2016. Another example of scale is that the value of all Japanese stocks hit a high of $5.49 trillion back in September.
Another reason why not to panic is that Bitcoin is spread across the world and not concentrated in a single economic block, such as Europe. A lot of people would lose a great deal of money in the event of a Bitcoin crash, but it should not throw a wrecking ball at a single country’s economy. However, if a Bitcoin crash was part and parcel of a greater financial breakdown across multiple markets, then the overall global market would be impacted.
That being said, a Bitcoin crash would hurt a lot of individuals, but I wonder if a lot of national governments would welcome such an occurrence. There’s no denying that many governments are not too keen on cryptocurrency as it is currency that lies outside their control, and governments are not thrilled with a lack of control.
As for Deutsche Bank, they’re calling for greater regulation and security on cryptocurrency in order to make it a viable asset class. The bank believes that the imbalance between supply and demand, as well as the volatility of crypto prices, make investing in digital currencies risky. Deutsche Bank says:
If cryptocurrencies are to replace money, then they have to fulfill money’s three core functions: as medium of exchange, a measure of value and a store of value. To do this, cryptocurrencies must be more trusted. Problems here include high volatility and possible price manipulation as well as data loss or data theft.
In the image below are the 30 global market risks as selected by Torsten Slok of Deutsche Bank.
What is your opinion of Slok listing a Bitcoin crash on his list? Do you think the cryptocurrency will crash in 2018? Let us know in the comments below.
Images courtesy of Bloomberg, Flickr, Pixabay, and LinkedIn.
Ultimately the market for ICOs is about the companies that make up that market. When you buy a token, you are holding a promise. You’re not holding a piece of that company. It’s important to understand at a deep level what that promise is.
From Skeptic to True Believer
For the past few days, I’ve examined the top performing ICOs that are backed by Ethereum’s ERC-20. Almost all of them are promises to deliver value and some even commit to a return on token.
Going in, I was skeptical about these high performing ICOs and their business plans. But except for a few gambling endeavors, the level of business innovation was shocking. As a marketer, I listened to the ICO hype of easy money from sleazy imposters and I was skeptical. But not anymore.
Take Golem for example, if you haven’t heard of Golem you’re not alone. Golem has given a 1958% return on their ICO from a year ago. That means had you invested just a $1000 in their ICO, it would be worth $19,580 today.
Golem’s business model is also innovative – this isn’t a commodity play. In short, Golem allows users to make money ‘renting’ out their computing power or developing software. And, they’ve tied their token value to the success of the overall platform which theoretically will increase the value of their token over time. That means if you’ve purchased a token or earned a token, that token may get even more valuable over time (on top of the 1958% return).
But investing in utility backed tokens is a completely different intellectual experience than we are ever taught about invest and how to make money. It’s more Kickstarter than stock market, but the token has a secondary market which may pay off in the future.
I wanted to learn more about companies like Golem and the potential of tokens so I decided to research 25 of the top performers. I’ve also rated them by an innovation score based on my own business experience. Why? Because I went in with the theory that most of them would be “me too” copycats. I was wrong.
The innovation score is based on my evaluation of the ICO and its level of innovation relative to its non-blockchain competition. For example, DigixDao received an innovation score of 2 because it isn’t much different than a gold fund. So, the innovation ratings are not scientific – they are not meant to be. But please, if you agree or disagree with my evaluation, let me know in the comments.
I love sharing what I discover, and I love to learn from your challenges and objections. So, let’s look at the Top 25 ICOs and compare your analysis with mine as I dive a little deeper in below.
Top 25 ICOs with the highest ROI – Click to view full infographic.
ICO Analysis Results
If you had purchased $1000 in each of these 25 ICO’s you’d be worth millions today. But if you had only analyzed Etheroll, the highest performing ICO on our list, you’d be forgiven if you called bullshit on the entire ICO scheme and skipped it altogether. Etheroll is just a dice game after all!
The fact is, a lot of these companies are not going to make it. We’ve seen this movie before and many people have lost money.
Does this mean you shouldn’t invest in ICOs or that you should skip them until there are more regulations in place? Perhaps, it depends on your risk threshold.
Yet, I believe we are on the verge of a completely new business evolution and I don’t see this as a fad. Far from it.
The economic value most of the 25 companies above are providing is real. Real disintermediation, real cost-cutting, and real efficiency that can’t be provided by anything but a blockchain.
There are going to be thousands of winners.
Summing It All Up
From an outsider’s perspective, ICOs look crazy. Admit it. But it was once crazy to invest in Kickstarter campaigns. It was crazy to invest millions in a twenty-year-old’s startup. It was crazy to buy Bitcoin.
Blockchain and ICOs are the undiscovered country. Together they will drive a sea-change of innovation that will upend traditional power structures and enable the Internet to achieve its original dream of empowering individuals and transforming civilization. But it’s still uncharted, so investors beware.
The best way to navigate these new waters is to identify the ICOs backed by experienced teams with legitimate business models. The odds of success go up dramatically. If you start with a strong crew, you can make a lot of money investing in ICOs or any business endeavor for that matter.
No matter your personal view on the situation, big companies like American Express, Amazon and Microsoft are moving into the blockchain space. The question is, what’s going to happen with that space and will you be there to take advantage of it?
What do you think of the analysis of the Top 25 ICOs? Do you agree or disagree with any of the findings? Let us know in the comments below.
Images courtesy of Mark Fidelman, AdobeStock, Coinmarketcap
In a move that has surprised many investors, French asset management firm TOBAM announced on Wednesday that has launched Europe’s first ever Bitcoin mutual fund.
Institutional Investors and Bitcoin
Over the past several months, Bitcoin has received a lot of attention from major news stations and institutional investors. Some investors have been hesitating to directly invest in the decentralized cryptocurrency due largely to the lack of proper regulations and security measures by authorities. There have been previous attempts to establish a Bitcoin ETF, but they all have been rejected by US regulators.
The famous Winklevoss twins, founders of the Gemini cryptocurrency exchange, have tried several times in the past to launch their own Bitcoin ETF to no avail. A few weeks ago the CME Group, one of the biggest derivatives marketplace in the world, announced that they will launch Bitcoin futures in the fourth quarter of 2017. Analysts believe that more and more institutional investors will invest in the current cryptocurrency craze.
A Bitcoin Mutual Fund
On 22 November, TOBAM, a French asset management company, announced via a public statement on their website that it had launched Europe’s first ever Bitcoin mutual fund. According to the report, the TOBAM Bitcoin fund will allow qualified investors to enter the cryptocurrency market quickly and effortlessly. The president of TOBAM, Yves Choueifaty, states following in the report:
Research is the founding pillar of TOBAM, and we have conducted research from a technical, financial, economic, and regulatory point of view on Bitcoin for a year prior to launching this fund. This first move in the world of cryptocurrencies showcases our dedication to remaining ahead of the curve and to provide our clients with innovative products in the context of efficient (i.e. unpredictable) markets.
Bitcoin being a highly diversifying asset, this launch is also an expression of our commitment to diversification in all its forms. Once again TOBAM is ahead of the curve and, in order to remain so, we will continue to reinvest a significant part of our growth into research and innovation for the best interest of our clients
The Head of Business Development at TOBAM, Christophe Roehri, also added following:
Direct investment in Bitcoin can be operationally challenging, from dealing with the choice of the platform, to maintaining the proper security measures in terms of custody and to managing the changes made to the protocol – hard forks. Our goal is to take control of these operational challenges in order to facilitate access for qualified investors willing to gain exposure to Bitcoin. All of that under the format of a fund
The TOBAM Bitcoin fund is beginning to sound very promising for institutional investors and people that are hesitating to invest in the digital currency. It is a definite sign that the US market should quickly move to accept and regulate financial Bitcoin instruments if they want to be the leading force in the global cryptocurrency market.
What are your thoughts on TOBAM’s Bitcoin fund? Do you think that more European investors will invest in Bitcoin and other cryptocurrencies through the new fund? Let us know in the comments below!
Bitcoin is steadily gaining traction in the finance and investment world and the Finnish Bitcoin broker Prasos is looking to expand into the European market.
The Bitcoin Expansion in Europe
Bitcoin and other cryptocurrencies have rapidly expanded in the American and Asian investment markets. This week, the total cryptocurrency market valuation managed to climb over $250 billion. Many analysts believe that Bitcoin and other cryptocurrencies will further grow in the upcoming months.
A recent article by Capitalreported that the Finnish Bitcoin broker, Prasos, is seeking further funding in order to expand its operations in the European market. Prasos has already started a public funding round, and it’s looking to grow its revenue by up to $16 million in the upcoming 3 years. The CEO and Co-founder of Prasos, Henry Brade, stated following in the report:
The company is currently highly profitable, but as the sector is growing rapidly, we need to invest in the international expansion with larger stakes
He further added:
Our current shareholders have received the new round very positively and we have received new private and professional investors from Finland and from abroad. We also want to further develop our investment services to regular investors that want to diversify their investment portfolios into cryptocurrencies
It’s worth noting that the company has already managed to raise 35% of its minimum funding target.
Making Cryptocurrencies a Mainstream Investment
Most experts believe that it is important to make Bitcoin and other cryptocurrency investments easier to access for investors that aren’t very familiar with the technology. Prasos’s mains goal is to make cryptocurrency investments easy and convenient for people that want to invest in the digital currency world. Henry Brade stated in the article:
Prasos is focusing the resources on making the investment procedure as easy and convenient as possible for the investors and aim to achieve this goal by further developing its Coinmotion investment platform and by concurrently establishing commercial partnerships with traditional companies providing investment services.
Analysts believe the Bitcoin futures, like the one which CME is realizing in the next quarter, may also make it easy for stock trades to invest in the decentralized cryptocurrency.
Do you think that Prasos will be able to further expand in the European market? Will they be able to offer an easy and fast way for people to invest in cryptocurrencies? Let us know in the comments below!
Bitfinex, the online cryptocurrency exchange and trading platform, announced that BTC:EUR is now a live trading pair on their website.
Bitfinex the worlds leading cryptocurrency exchange announced today that they will begin trading BTC:EUR, a move that has been widely welcomed after the site previously only supported the US dollar. The exchange also offers margin trading for those with more than a hobbyist attitude towards cryptocurrency trading.
Other than the tweet above, there has been very little fanfare of the new trading pair introduction. Although Bitfinex’s website itself has made no mention of the addition, it has come to light on Reddit that the minimum deposit for Euros is actually 10,000€, with a 0.100% fee on transactions. The exchange and trading platform also announced an introductory discount fee of 15%.
BTC/EUR will have an introductory fee discount of 15% – Happy trading.
GDAX already has EUR, GBP and US dollar pairs for Bitcoin, so Bitfinex shall make a welcome addition for many traders. The Euro Bitcoin price is currently at 7045€, which converts to $8312 leaving quite a margin for arbitrage, however acceptance of trading certain pairs is limited to certain regions but the savvy trader could perhaps find profit in such a EUR/USD shortfall in Bitcoin’s price.
Are you a Bitfinex user? Is this a welcome move? Let us know what you think in the comments below.
Reflecting investors’ optimism, Bitcoin and world financial markets are setting record highs almost in sync. On October 13, 2017, Bitcoin hit an all-time high value, breaking through the $5,800 USD mark. On the same date, global stock market indexes showed a significant surge, stretching to record highs.
Bitcoin and Stock Markets’ Spectacular Bullish Momentum
Bitcoin’s market value, the total dollar value of all bitcoins in circulation, is becoming substantial as it hits $96.7 billion USD. As a result, “The cryptocurrency now has a market cap larger than Goldman Sachs and Morgan Stanley,” according to a CNBC report.
On the other hand, Ethereum is continuing to recover from the South Korean’s banning of ICOs. Ethereum climbed to over $339 USD per coin in intraday trading, on October 13, 2017.
In addition to the rise in Bitcoin’s value and that of other cryptocurrencies, world financial markets are also reaching record high indicators.
For example, European stocks rose again, sustaining a bullish trend that has already lasted for five weeks.
In Japan, Bloombergreports that retail and technology sectors boosted the Nikkei 225 stock average to the highest ever closing value since December 1996, while in the US, a surge in the technology sector drove the S&P and NASDAQ to close the week at record highs.
The MSCI All-Country World Equity Index clearly captures this remarkable surge. This index shows the performance of large and mid-cap stocks comprising data from 23 developed financial markets. As shown in the chart below, the MSCI index touched 493.92, hitting a new high, on October 13, 2017.
Bitcoin-Related Stock, Nvidia, also Skyrockets
Technology stocks, such as Nvidia’s (NVDA) have been instrumental in bolstering the US stock market. Indeed, NVIDIA’s stock price continued its impressive ascending trajectory breaking new record highs. On October 13, 2017, in part fueled by the sale of cryptocurrency mining devices, Nvidia’s stock touched a value of $195 USD per share.
Specifically, “Nvidia said it made around $150 million last quarter off miners,” reportedFortune.
Analysts remain bullish with the chipmaker because they consider how Graphics Processing Units (GPUs) used in cryptocurrency mining generate profits.
For example, RBC Capital Markets analyst Mitch Stevens set Nvidia’s target price at $220 USD. Elaborating on what is driving Nvidia’s stock price, Stevens mentioned the contributions of revenues generated by the company’s data center hardware and the gaming segments.
In this regard, Marketwatchreported that Stevens also spelled out the relevance of cryptocurrency mining in the company’s stock price drive:
Self-driving vehicles, which Nvidia has made significant bets on, will also drive the company’s stock. Cryptocurrency mining will add a ‘moderate boost’ as well since miners use some GPUs.
Moreover, almost in tandem, Needham & Company, also citing the potential of Nvidia data centers, further increased Nvidia’s price target from $200 USD to $250 USD.
Advanced Micro Devices (AMD), the other chipmaker that manufacturers cryptocurrency mining hardware, also improved on its outlook. Thus, on October 12, 2017, Exane BNP Paribas upgraded AMD from neutral to perform.
So, the week ending on October 13, 2017, closed spectacularly. It ended with a pervading optimism in both Bitcoin and the global financial markets.
What are your thoughts about the relationship between Bitcoin, Nvidia, and global financial markets? Let us know in the comments below.
Images courtesy of Shutterstock, Pixabay, Investing.com, Nvidia