The Leading Cryptocurrency Stories for 4th July 2018

The Leading Cryptocurrency Stories for 4th July 2018
July 4, 2018

The crypto market made an unexpected bullish reversal on Monday, catching many short sellers off-guard. The sharp rise in the price of Bitcoin to over $6,500 is the main reason for the overall bullishness now seen in the market. Almost all analysts are sure that Bitcoin will reach the level of $7,000 once more. However, long-term bullishness is confirmed only when Bitcoin consolidates at $7,300 and breaks above $10,000.

Whilst the cryptocurrency market is eagerly waiting for the bullishness to return, not everyone is convinced that it will happen. This is true with the Bank of Finland, which has called the concept of digital currency a ‘fallacy’ in a report titled “The Great Illusion of Cryptocurrencies.” The paper goes on to explain how the concept of money is poorly understood even today. According to Aleksi Grym, adviser on digitalisation and head of the digital central bank process in the Financial Stability and Statistics Department, blockchain is simply another kind of record-keeping system.

While the Bank of Finland is busy hitting cryptos with its report, a group of European banks, including HSBC, Deutsche bank, Norea, Natixis, Rabobank, Soceite Generale, Santander and UniCredit, have completed a series of cross-border financial trades using a blockchain platform developed in joined effort. Live transactions were completed between 10 companies in five days. The software, named We Trade, was developed on IBM’s blockchain platform.

Banks across the world generally reluctant towards providing business services to blockchain technology and cryptocurrency companies. Bermuda’s banks are no exception to this stance, even though the government demonstrates a friendly approach towards blockchain technology related companies. To encourage investments in blockchain technology, the government is amending its Banking Act to establish a new class of bank that caters to blockchain companies. Notably, the country has recently passed an ICO Bill and Digital Asset Business Act to lure blockchain related companies.

Coinbase has officially started its custodial service business this week. It has already acquired 10 clients, which are mainly hedge funds and family offices. By the end of this year, the company hopes to have 100 clients and $5 billion in assets management. The clients are invariably hedge funds and family offices. The company already safeguards $20 billion worth crypto assets on behalf of retail clients. To enrol as a client of its custodial service, a charge of $100,000 is to be paid as a setup fee. Additionally, 10 basis points will be charged as monthly fee.

The Russian Ministry of Defense has launched a blockchain research lab to study how the technology can be used to detect cybersecurity attacks. The project is launched by ERA, Russia’s military accelerator. The science lab will also check how blockchain can be implemented to protect vital infrastructure.

 

Ethereum (ETH)

The transaction fee on the Ethereum network has suddenly risen from a mere $0.01 to nearly $1. There are two reasons for the exorbitant fees. Firstly, cryptocurrency exchange Binance has increased the gas fee to 180 Gwei (0.00000018 Eth) to avoid withdrawal delays and overcome congestion on the network. Secondly, a series of airdrop campaigns were conducted by developers based on a competition held by FCoin, a new Chinese cryptocurrency exchange. To push back competitors, airdrop campaigners resorted to the use of higher Gas fee, resulting in an overall increase in transaction charges.  Read more here.

 

EOS (EOS)

Similar to the sharp rise in Ethereum transaction charges, Ram charges have skyrocketed in EOS network, which launched its mainnet only around a month before. Ram, a term used for the bandwidth allocation in a network, is a must for a DApp (decentralised application) to run on the EOS platform. If a DApp is expected to have 1 million customers then a developer should purchase 1 million Ram. At the time of launch, the DApp was traded at $1. As of today, one unit of Ram trades at $17. This means that a developer, expecting 1 million customers for a DApp, has to spend $17 million for Ram. Read more here.

 

Our Forex Trade Plan

Bitcoin Cash. Bitcoin Cash (BCH) remains range bound between 660 and 820, as shown in the price chart below. The BCHUSD pair is declining after failing to break above 820. So, we are expecting the pair to retest 660 levels. Therefore, a short position in the cryptocurrency pair would be appropriate at this point in time.

We wish to initiate a short position near 750, with a stop loss order above 790. Once the short position is opened, we may place a buy order near 690 to book profit when the pair slides down.

Bitcoin Cash - Technical Analysis - 4th July 2018

 

Our Binary Options Trade Plan

Dash. Dash (DASH), the cryptocurrency facilitating anonymous transactions, is moving along an ascending channel as shown in the price chart below.  Yesterday, the DSHUSD pair bounced off the lower end of the channel, confirming the support. So, we can expect the pair to rally in the days to come.

A call option is an ideal investment vehicle to benefit from the uptrend in the cryptocurrency pair. We may purchase a call option using a binary broker’s platform when the cryptocurrency pair trades near $240. Furthermore, we will opt for a contract which does not expire before July 12th.

Dash - Technical Analysis - 4th July 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


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