The return of bulls to the cryptocurrency market may spell trouble for countries whose fiat currencies are considered weak. Iran is a classic example of this scenario. As Bitcoin started rising in a steep manner last year, the Iranian rial started depreciating. In the past nine months, the value of the rial has depreciated by about 50%.
As the market is slowly turning bullish, to halt the erosion in the value of the rial, the Central Bank of the Islamic Republic of Iran (CBI) announced that its governing committee has banned cryptocurrencies to prevent money laundering. The situation was a bit different in India, where the Reserve Bank of India’s order aimed to curb cryptocurrency transactions was questioned by the Delhi High Court.
The court has now sought a detailed explanation for forcing banks and other financial institutions to withdraw their business relationship with entities dealing in cryptocurrencies. The case was filed by Kali Digital Ecosystems, which had plans to launch their own coin in August this year.
Meanwhile, small enterprises are realizing the potential of blockchain technology, and there is no need to explain the importance tech giants have already given to disruptive technology. For example, Amazon – the cloud computing giant – has launched blockchain templates suitable for Ethereum and Hybrid ledger-based projects. These templates enable enterprises to quickly set up their own blockchain networks. Both private and public ledger can be created on the Ethereum network, using the templates, but they can only be used to launch a private network using Hyper ledger.
Here are the leading cryptocurrency stories for the week:
Bitcoin (BTC)
Bitcoin broke $9,000 late Monday, extending last week’s gain. So far in April, the cryptocurrency has managed to gain 38%. Commenting on the uptrend, Tom Lee, co-founder and head of research at Fundstrat Global Advisors, said “the winter is ending for Bitcoin.” The rally has encouraged big financial institutions to raise the minimum order level for Bitcoin. Circle, a cryptocurrency exchange-backed by Goldman Sachs, has doubled the minimum trade amount to $500,000. The OTC (over-the-counter) platform provider has called the current crypto market scenario as ‘robust.’ Read more here.
EOS (EOS)
EOS, the token representing a smart contract platform, which is going to be deployed on its own mainnet in another 35 days, is on a bullish rally for the past few days. The cryptocurrency market sees the platform as a big challenge to Ethereum (ETH). Binance and Bitfinex, the two leading cryptocurrency exchanges, have already announced their support for the upcoming launch of mainnet. On June 2, before the launch of mainnet, all EOS tokens will be frozen on the Ethereum blockchain. Read more here.
Bitcoin Private (BTCP)
Bitcoin private has appreciated by more than 100% in the past one week to trade at $54 levels. There are two main reasons for the uptrend. Merchant Solution, a payment processing service provider, will facilitate businesses to accept Bitcoin Private in the coming months. The beta phase of the facility is going to be launched later this month. Secondly, the hardware wallet provider Nano is presently working to integrate Bitcoin Private. The hardware wallet will provide support to the cryptocurrency in the next version of its firmware. The information was announced by Nicolas Bacca, a member of the Ledger team.
Our Forex Trading Plan
Ripple. Ripple (XRP) is our choice of an asset to trade in the cryptocurrency market through a Forex broker. The price chart indicates a major resistance at 0.9760. Furthermore, the Williams percentage Range indicator is indicating an extremely overbought scenario. Therefore, we are expecting a short-term correction in the XRPUSD pair.
We prefer to go short in the XRP USD pair using one of our Forex trading accounts. Our preferred entry and exit price is 0.97 and 0.77, respectively. To avoid volatility-related risks, we would certainly place a stop-loss order above 1.10.
Our Binary Options Trading Plan
Litecoin. Litecoin, which can be considered as an offshoot of Bitcoin, remains bullish in the chart. After testing the support at 112, the cryptocurrency has risen by about 50% in the past two weeks. The stochastic oscillator continues to ascend towards the bullish zone. Furthermore, the next major resistance exists only at 185. Therefore, we expect the uptrend to continue in the short-term.
We wish to invest a portion of our surplus funds in a call option contract, which is offered by a reliable binary broker. Before proceeding further, we would make sure that the call option is valid for a period of one week. Furthermore, the LTCUSD pair should be trading at about $150 in the cryptocurrency market.
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.
