The Leading Cryptocurrency Stories for 11th June 2018

The Leading Cryptocurrency Stories for 11th June 2018
June 11, 2018

The cryptocurrency market remained largely range bound during the past week. While the skeptics continued with their smear campaign, optimists continue to pour money into various cryptocurrency related projects. Cryptocurrency miners continue to flock to Canada, where power is available in abundance, at least until now. Considering the steep rise in power demand for cryptocurrency mining operations, the government of Canada has practically blocked new requests for power supply so that energy company Hydro-Quebec can continue supplying power to other consumers in the province. Hydro-Quebec has stated that the unexpected rise in demand for power supply exceeds its short- and medium-term capacity.

Similar to Russia, Bank of Thailand is also vying to break away from the dependence on SWIFT for international financial settlements. The country’s central bank is planning to create its own blockchain technology based cryptocurrency to carry out inter-bank transactions faster, secure, and cheaper. The central bank governor Veerathai Santiprabhob revealed the name of the cryptocurrency project as Inthanon.

In Europe, Deutsche Bank AG, Allianz SE, and Auto1 Group GmbH are partnering to simplify the process of used car purchase financing through blockchain technology. The partners have formed a company named Auto1 Fintech to refinance loans and insurance products. Auto 1, which operates a portal for purchasing used cars, buys vehicles and sells it to dealerships. The dealers will be able to instantly refinance their purchases using the blockchain technology, instead of going through traditional paper work which will take at least two to three weeks to complete. Ultimately, the dealer is expected to purchase more by this arrangement. The system is similar to the manner in which Paypal’s instant purchase mechanism boosted eBay’s volumes.

In China, Ant Financial, the subsidiary of Alibaba, raised $14 billion in Series C funding. The funds will be used by Ant Financial to expand operations and invest in technologies such as blockchain to improve its operations. With this funding, the value of Ant Financial has crossed $100 billion to make it the world’s largest Fintech firm.

The Bank of Italy’s deputy governor Fabio Panetta has stated that Central Bank Digital Currencies (CBDC) could save €76 billion in costs to the European Union. The estimate was given based on the amount spent on printing and transporting fiat currency. While giving a keynote address, Panetta also rubbished concerns of a possible Net Interest Margin (NIM) squeeze on commercial banking sector due to the introduction of CBDC. 

Now, let us look at the cryptocurrencies that made the headlines in the past few days.


Ethereum (ETH)

Parity Technologies, a UK based infrastructure software provider, has asked clients to immediately install a patch issued to fix a testnet vulnerability. Parity has identified that the vulnerability in the software can spread to the Ethereum network with which it interacts. The compulsory patch is designed to fix the potential consensus issue. Users who do not update their software will face a rejection of their transactions on the Ethereum network. Read more here. 


Ripple (XRP)

A cryptocurrency investor named Vladi Zakinov has filed a lawsuit against Brad Garlinghouse, Ripple Labs, and XRP II LLC. The class-action lawsuit has asked the court to consider declaring Ripple as a security under California law. Additionally, the lawsuit also seeks compensation for the damages. This is the second lawsuit filed against Ripple. The previous lawsuit was filed by Ryan Coffey in the San Francisco County Superior Court. Ripple has persuaded two former SEC executives – Mary Jo White, former chair of the SEC, and Andrew Ceresney, former Enforcement Chief – to assist in fighting the allegations. Read more here. 


Our Forex Trading Plan

Bitcoin. As the image below indicates, Bitcoin continues to move along the descending channel. Furthermore, the momentum indicator has crossed below the 100 reading. Therefore, we can expect a downtrend in the price of Bitcoin.

In order to benefit from the downtrend, we may open a short position in the BTCUSD pair near 7250, with a stop loss order above 8,000. We will close the short position when the BTCUSD pair falls to about 6,600.

Bitcoin - Technical Analysis - 11th June 2018

Our Binary Options Trading Plan

Ripple. Ripple, which was slapped with a second lawsuit last week, is our obvious choice of asset to trade in the binary market. Technically, the XRPUSD pair faces resistance at 0.69. The money flow index is near the reading of 80. So, we can expect a downtrend to begin soon.

To capitalise on the probable downtrend, we are planning to invest in a put option contract offered by a reliable binary broker. We may invest our surplus money only if the XRPUSD pair is trading near $0.61 in the cryptocurrency market. Furthermore, the put option contract offered by the binary broker should be valid for at least seven trading days.

Bitcoin - Technical Analysis - 11th June 2018

Disclaimer: The trading analysis offered here is our opinion. It is not provided as trading advice, merely an indication of our trading plan. We cannot guarantee success and we encourage traders to incorporate a strong money management strategy to limit losses. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins

Related Articles

Draghi, Yellen, the Euro and the US Dollar

  The US dollar is on a rise as the Federal Reserve of the United States decision failed to maintain

Winklevoss Twins To Launch Stable Coin Pegged To US dollar

  The cryptocurrency market remains range bound for the past few days. However, the overall sentiment remains slightly bearish. Bitcoin

Political Uncertainty Keeps the Euro Dollar Weak

  Lower-than-anticipated wage growth coupled with marginally higher-than-expected unemployment rate triggered a US dollar selloff earlier this week. One of