Hi Everyone,
Once again, the crypto market is in an upswing. The more I look, the more it seems that Bitcoin and the other cryptos are beginning to find their place among the other markets.
As we know, crypto is an exciting new asset class. Until now, it has been very segregated from the rest of the markets, but that’s now changing at a rapid pace.
In 2017, we saw bitcoin as a high-risk asset correlating with the stocks, which is traditionally a high-risk market. Here are Bitcoin and the Dow Jones over the course of last year.
At the beginning of this year, there was a sharp correction in both the stock markets and the cryptos. Now that that dynamic has played out, it seems that the US Dollar is now taking center stage.
If you’re still unconvinced that the USD and BTC are doing a little dance together, take a look at this graph here of the US Dollar Index and Bitcoin over the last two months. With the exception of July 17th when both of them rose together, their momentum of travel have been mirrored.
This kind of behaviour is typical of commodities. As the buck falls, it takes more Dollars to buy a barrel of oil or an ounce of gold and vice versa.
My suspicion here is that as the Dollar dominates the markets people are placing more faith in it over bitcoin and of course, vice versa when the Dollar falls.
@MatiGreenspan – eToro, Senior Market Analyst
Today’s Highlights
- Holy Guacamole
- Fresh Highs
- Dash & Neo Surging
Please note: All data, figures & graphs are valid as of August 28th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Fresh optimism has entered the markets with the announcement that…
It was touch and go there for a bit but it seems that Trump has now signed a 16 year deal with Mexico, which could spell the end of NAFTA. The new deal will also see the end of new cars coming to the USA from China through Mexico.
The best part is that Justin Trudeau now has the option to join in the fun as well.
The stock markets were doing great yesterday with fresh highs in many places. Today they’re simply off the hook, especially in the tech sector.
Crypto Stars
As the Dollar falls, crypto is rising in relation but certainly not evenly. The rising stars of the crypto world over the last 24 hours have been Dash and NEO.
One reason that may be helping Dash along is the news that it is partnering with Kripto Mobile to make some hip new Krip phones, which will be pre-loaded with Dash and an entire Dash ecosystem, designed to revolutionize the economy of Latin America.
I have no clue why NEO (AKA Chinese Ethereum) is rising. This could just be the general excitement in the crypto market – there doesn’t always need to be a news story tied to a movement.
Bitcoin itself is now testing $7,000 per coin for the first time this month. The long green candle and strong push off the lows is yet another sign that this bear market may finally be behind us.
About the Author: Mati Greenspan is a Senior Market Analyst at eToro
Connect with Mati on….
eToro: http://etoro.tw/Mati | Twitter: https://twitter.com/matigreenspan | LinkedIn: https://www.linkedin.com/in/matisyahu/ | Telegram: https://t.me/MatiGreenspan | Office Phone: +44-203-1500308 (ext:311)
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