At the beginning of this week, the cryptocurrency market made growth attempts but then began a downward correction. Currently, Bitcoin is trading at 10150.00 (–1.8%), Ethereum is at 190.00 (–2.3%), Ripple is at 0.2700 (–5.6%), and Bitcoin Cash is near 310.00 (–3.3%), and Litecoin is around 73.75 (–4.9%). The total market capitalization reached $281 billion but then decreased to $267 billion. Bitcoin’s market share fluctuated around 69.0–68.5%.
Below is an overview of technical indicators based on 1 day charts which show a “sell.” If we expand to “weekly” it turns to “buy.”
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This week, the Libra project from Facebook again came into the view of investors. According to Bloomberg, the antitrust authority of the European Union began checking Libra due to possible anticompetitive behavior of the project. Brussels fears that if a new asset and a payment system are launched, they will be able to easily push other competitors out of the market. Representatives of Libra and the EU antitrust commission declined to comment on this issue. Today, representatives of the US Congress are due to meet with the Swiss Commissioner for Data Protection and Information Adrian Lobsiger. One of the main issues for discussion will be the Libra project, registered in Switzerland, and its ability to ensure the confidentiality of its users’ data.
From the news of other cryptocurrency projects, it is worth noting that Tether is preparing to release a new stablecoin provided by the Chinese yuan, called CNHT. The cryptocurrency company RenrenBit will support the trading of the new asset, and the yuan reserve will be kept in one of the banks in Belgium. Spanish bank Santander uses Ripple technical solutions for instant and free money transfers from Latin America to the USA. The world’s largest cryptocurrency exchange Binance announced plans to launch the Venus project. This is a new ecosystem that will allow for the development of regional stablecoins and digital assets tied to fiat currencies around the world. Experts have already called the new project a competitor to the not yet launched Libra asset.
Also worth paying attention to the comments of US Secretary of State Mike Pompeo, which he gave to CNBC. Pompeo said cryptocurrency transactions should be regulated like regular transactions through SWIFT or other financial institutions. At the same time, the Secretary of State considered the anonymity of operations with cryptocurrencies dangerous, since insufficient control over them can reduce security in the world.
The cryptocurrency market may stabilize or continue to decline next week.
Robert Thomas has over 14 years experience in the investments on the institutional side of markets and has an “insider” view on the markets. In addition, he is an futures day trader that focuses on analyzing fundamentals, specifically earnings reports and technical levels. He has a Masters Degree in Business and Economics.