This week, Bitcoin continued to fall and reached a minimum at 7960.00. Almost all the top 10 alternative cryptocurrencies by market capitalization fell after the collapse of bitcoin prices, which caused the market to slide down. Litecoin (LTC), EOS (EOS), Binance Coin (BNB), and Stellar (XLM) fell to their lowest level in 6 months. The largest one-day loss among the top 10 was shown by Ripple (XRP), which fell to 0.2372 on Tuesday. The total market capitalization is USD 212.4 billion. Bitcoin’s market share rose to 68.3%.
Analysts argue about the reasons for the fall, but many see this decline as a potential for opening new long positions. Meanwhile, disputes around the Libra network continue in the digital market. France said it would seek to block Libra in the EU due to a threat to the country’s “monetary sovereignty”; similar concerns were also expressed by Germany and the United States.
In recent weeks, news related to blockchain-based real estate initiatives has been appearing in Northeast Asia. Some of them involve large companies and groups, including one connected to Sony, although most of the activity is focused on testing, development agreements, and pilot projects. On September 24, Tsubai Space, a Japanese real estate blockchain company, and Shinonome Advisors, a law and tax real estate company, said they would jointly develop a token for the real estate market. There were few details in the announcement: companies only reported that the project was privately discussed in Taiwan in July and will be officially announced in early October.
Treasuries Fall Ahead of FOMC Speech
The U.S. Treasuries slumped during Friday’s afternoon session ahead of the country’s personal consumption expenditure (PCE), a valuable index for the calculation of consumer price inflation (CPI) for the month of August, scheduled to be released today by 12:30GMT, besides, a speech from Federal Open Market Committee (FOMC) member Harker, due to be delivered by 16:00GMT.
The yield on the benchmark 10-year Treasury yield jumped 3-1/2 basis points to 1.720 percent, the super-long 30-year bond yield surged nearly 4 basis points to 2.166 percent and the return on the short-term 2-year traded 2 basis points higher at 1.676 percentage by 12:00GMT.
USTs are little changed from this time yesterday (10Y yields still close to 1.70 percent) before today’s US personal spending report that will provide an update on the Fed’s preferred inflation measure. JGBs largely shrugged off the Tokyo CPI report, with 10-year yields trading within yesterday’s range and 2-year yields up about 1bp to -0.33 percent, their highest level in 3 days, Daiwa Capital Markets reported.
This day will bring the release of preliminary, durable goods orders data for August, along with personal income and spending numbers for the same month, including the Fed’s preferred inflation measure, the core PCE deflator. On an annual basis, this is expected to rise 0.2ppt to 1.8 percent y/y, which would be the highest since December, the report added.
Meanwhile, the S&P 500 Futures remained almost steady at 2,989.12 by 12:05GMT.
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.