The cryptocurrency market is turning bearish after two consecutive days of an uptrend. Bitcoin (BTC), which is the main driver of the market, is struggling to move above the $7000 level. While cryptocurrency investors and enthusiasts are disappointed, bankers may be quite relieved by the weakness seen in the markets.
China’s central bank has stated that the restriction imposed on cryptocurrency trading has turned out to be a tremendous success. According to the data provided by the People’s Bank of China (PBoC), the Chinese yuan accounted for only 1% of all Bitcoin trades across the world, but yuan (Renminbi)-to-Bitcoin trades represented over 90% of Bitcoin trades in September 2017.
The Chinese government became tense and banned the use of Renminbi to purchase cryptocurrencies, and as many as 88 cryptocurrency exchanges were shut down. Hubby and OKCoin (renamed as OKEx) shifted their headquarters to Singapore and Malta, respectively. However, according to research conducted by Imperial College London, there is nothing that can stop cryptocurrencies from gaining mass adoption.
Researchers have forecast that Bitcoin could be the widely used means of payment within a decade. The research paper titled “Cryptocurrencies: Overcoming Barriers to Trust and Adoption” prescribes the criteria necessary for Bitcoin to become the preferred means of payment. For mass adoption, Bitcoin must become a store of value and it should then act as a medium of exchange. The first rule is already met. Researchers believe that the second factor will also be met in the coming decade.
Open Mineral, an online metal concentrates exchange, is working to create a consortium of mining companies and financial institutions to establish a blockchain platform for mineral trading and logistics. In this regard, the Swiss-based Open Mineral has entered into a partnership with the US-based ConsenSys to create Minerac; a platform that aims to improve the efficiency of mineral trading and supply chains.
ConsenSys has the experience of building a similar platform for the oil and trade finance industry, through which it uses the Ethereum network to facilitate the platform. Former traders at Glencore created the Open Mineral’s online platform last year. The platform allows mining companies and smelters to avoid third-parties, thereby resulting in cost savings while trading concentrates.
Bitmain, which nearly controls 51% of Bitcoin mining, is investing $50 million in the IPO (initial public offering) of Opera Ltd. The creator of the Opera browser is planning to raise between $300 million and $400 million in a Series B funding round. Opera is planning to sell $50 million worth of shares to Bitmain and $10 million worth of shares to two investors.
Cardano (ADA)
Charles Hoskinson, Cardano (ADA) co-founder and CEO of IOHK, was recently invited to visit Google UK. Following the meeting, Hoskinson conducted a surprise Reddit Ask Me Anything (AMA) session in which he revealed that Google asked him about the cryptocurrency sector and Cardano’s technology, etc. Hoskinson also stated that he explained to Google’s executives how Cardano uses a small portion of Google’s technology and suggested how Google can make use of Cardano’s innovative technology.
Qtum
Qtum is a decentralized smart contracts platform that allows anonymous parties to make transactions without the involvement of a centralized party. It is about to gain the reputation as the first blockchain on which a film is released. Vevue, a video exchange and copyright platform based on the Qtum blockchain, is planning to release a film titled “No Postage Necessary.” The story is about a computer hacker who falls in love with a widow. Users will be able to pay in crypto to watch the film on desktop and mobile devices. The platform reflects the flexibility of the Qtum blockchain in serving real-world use cases. Read more here.
Our Forex Trading Plan
Litecoin. Litecoin is forming a descending triangle pattern as shown in the image below. Furthermore, the next major support for the LTCUSD pair is only at 76. The stochastic oscillator remains in the bearish zone. Therefore, a deeper decline is expected.
To gain from the decline, we may go short in the LTCUSD pair near 76, with a stop loss above 85. If Litecoin moves down as indicated by the technical indicators, then we shall book profit near 56.
Our Binary Options Trading Plan
Ripple. Ripple (XRP) is our choice of an asset to trade in the binary market. The cryptocurrency has broken major support at 0.48, as shown in the price chart below. The MACD indicator has crossed below the zero reading and is moving downwards. Therefore, we expect the XRPUSD pair to remain bearish in the short-term.
We would like to trade the Ripple token’s decline by investing in a put option contract. The option should remain active for a period of one week. Additionally, we prefer the price of Ripple to be around $0.45 at the time of investing in the put option.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
