Tag: Currencies

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Currencies Trading Ideas & Charts

Recent flash crash urges Bitcoin whales to buy it at a discount

 nearly 15% less than the previous day and reflecting a loss of more than $410 billion. A selling spree among the investors drove the prices of nearly every single coin, erasing the gains of the retail traders amidst the news of El Salvador’s first day accepting bitcoin as legal tender. This move resulted from the $4 billion cascading liquidations from the over-leveraged Bitcoin and Ethereum futures.

In the middle of the flash crash, El Salvadoran President Nayib Bukele remarked that the country took advantage of crashing prices to purchase 150 bitcoins in addition, boosting its total to 550 coins, which amounts to about $25 million. The correction in the Bitcoin market highlighted the need to book profits consistently along the rally. 

The Bitcoin fear and greed index, which is considered as an indicator of the overall sentiment of traders in the market, recently indicated ‘fear’. Analysts expect a potentially volatile period ahead for Bitcoin, as nearly 336,000 traders positions were liquidated in the crash. However, post Tuesday’s downfall, BTC is now on its road to recovery. Spent output ratios that look at profitability and losses taken over a particular time frame shows that the long-term holders have largely maintained their positions indicating the larger wallet moves were on-balance active short-term traders. On the contrary, it is observed by the analysts that the whales have been significantly buying BTC, increasing their holdings. Historically, whenever large wallet investors have increased their holdings and accumulated BTC, a price rally has followed. The proponents have claimed that if new buyers constantly inject capital in Bitcoin, it could break key resistance and set an all-time new record, further in 2021. Analysts expect Bitcoin to continue upwards climb and target the $57,000 level next.

About Bitcoin:

Bitcoin is the world’s first decentralized cryptocurrency- a type of digital asset that uses public-key cryptography to record, sign and send transactions over the Bitcoin blockchain.

Launched in 2009, bitcoin is the world’s largest cryptocurrency by market capitalization. Unlike fiat currency, bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system, known as a blockchain. Bitcoin’s history as a store of value has been turbulent; it has gone through several cycles of boom and bust over its relatively short lifespan. As the earliest virtual currency to meet widespread popularity and success, bitcoin has inspired a host of other cryptocurrencies in its wake.

(Source: FXStreet, Investopedia, Forbes)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Coinbase Global Benefits from more Interest and Adoption of Cryptocurrency, but the Future Remains Unknown

Golden bitcoins. Cryptocurrency on computer motherboard.

The company’s reputation, regulatory compliance, and track record as a custodian have allowed it to maintain transaction fees above many of its peers despite operating in a crowded field with hundreds of competing firms trying to grab market share in the rapidly growing space. Coinbase has continued to branch off into adjacent businesses offering cryptocurrency collateralized loans, a crypto debit card, blockchain infrastructure support, and data analytics services.

While these new businesses expand the company’s presence in the cryptocurrency space and add new revenue streams, the company still earns the majority of its income through the transaction fees traders pay when they trade on Coinbase’s platform. These fees are charged as a percentage of trade’s total value. Due to its breadth of its service offerings and the connection between cryptocurrency prices and trading revenue, Coinbase’s short- and long-term results are deeply tied to the health and growth of cryptocurrencies as an asset class. 

Cryptocurrency adoption continues to rise but questions regarding the long-term viability of cryptocurrency, the role of speculation in current market prices, and the potential for a more hostile regulatory environment remain unanswered.

Financial Strength 

Coinbase is in an excellent financial position, particularly after receiving an influx of capital from private-investment- in-public-equity investors coinciding with its direct listing on the Nasdaq exchange. Coinbase saw a spike in trading volume in the first quarter of 2021, leading the company to generate more net income in the first quarter of the year than in the entirety of 2020. As a result, the company ended March 2021 with nearly $2 billion in cash against only $500 million in borrowed crypto assets. Since March, Coinbase has issued $1.25 in convertible debt due in 2026, adding to both its liquidity reserves and its debt load. The decision to keep Coinbase largely free of debt makes sense given how volatile the company’s revenue generation can be. Coinbase needs to keep sufficient financial reserves to sustain itself in the event of a major market collapse.

No-moat Coinbase reported strong second-quarter results with earnings of $6.42 per share and net revenue of $2.23 billion coming in above our expectations. Earnings benefited from a tax benefit of $737 million as a result of tax deductions associated with the company’s direct listing. Strong cryptocurrency prices during the quarter drove total trading volume to a new all-time high of $462 billion, 38% more than last quarter. Coinbase added 29 new cryptocurrencies to be traded on its platform and now lists 83 different offerings. Coinbase continues to increase spending with operating expenses increasing 66% from last quarter and 838% year over year. As a result of the sharp sequential increase in operating expenses the company’s operating margin fell from roughly 55% in the first quarter to 39% in the current quarter.

The two largest drivers of this decline were technology and development spending, which increased 58%, sequentially and marketing spending, which increased 66%. Historically, Coinbase has kept marketing spending at 10% or less of sales, as it relied more heavily on word of mouth than on advertising to grow. The company is now guiding marketing expenses to be around 12%-15% of sales during 2021. Average retail trading fees increased from 1.21% in the first quarter to 1.26% in the second quarter, due to a mix shift away from the company’s less expensive Coinbase Pro platform. 

Bulls Say’s

  • Coinbase has established itself as the leading U.S.cryptocurrency exchange and established a strong reputation for security in an industry filled with risk for traders.
  • Coinbase has been able to accelerate the rate at which it lists new cryptocurrencies, giving the company more exposure to the growth of the asset class.
  • There is a global market for cryptocurrency. Regulatory approval from international regulators will allow Coinbase to expand its operations and increase its footprint globally.

Company Profile 

Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage, data analytics, and collateralized lending.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Crypto Market Logs in 3.5% Drop in Trade, Bitcoin Sheds Weekly Gains

Despite strong optimistic sentiments, Bitcoin (BTC) experienced corrections at the start of the week, falling by 6% as of 9 a.m. IST to close at $39,700.

BTC stayed above $41,000 for the majority of the day until being dragged down by the bears in the early hours of Monday. If the downturn continues, BTC may shortly test its first support at $39,000.

BTC trade volume surged by more than 7% across all exchanges.

Ethereum (ETH) was down 0.8% this week, although it maintained its gains from the previous week. It closed at $2,560, slightly over the $2,530 barrier mark. It is developing support levels at $2,330 and $2,250.

Polygon (MATIC), Stellar (XLM), and Theta (THETA) are among the major altcoins that have lost 5-7 percent in the last 24 hours, while others have lost 3-4 percent.

BTC is expected to bounce back from its present support level of $42,000 this week, with the 20-week moving average being tested afterwards. If BTC maintains its position, ETH’s hard fork, which went live on August 4, should continue to fuel momentum in the larger altcoin market.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Bulls in the AUD /USD: Sprinting Against the Wind, Aiming for Daily Goals.

Near 0.7445 is the 78.6 percent Fibonacci retracement line, which will be a test for the bulls.

AUD/USD Daily Chart

Despite the weakening news flow, the Australian dollar is trading at its highest level since July 19, testing the 0.74 level.

 The Australian dollar has only retraced around a third of its losses this month. To test the July 6 high at 0.7600, a break above 0.7480 is required. If the RBA makes a dovish flip next week, this will become more difficult.

(Source: FactSet)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

AUD/JPY Price Analysis: Despite A Positive Australian Q2 CPI, The Pair Is Off Its Intraday High.

While the weekly bottom near 80.60 may provide immediate support ahead of the monthly low near 79.80, the psychological magnet of 80.00 may act as an additional filter to the south.

It’s worth mentioning that the pair’s weakness beyond 79.80 will need to be confirmed by the yearly low near 79.20 before the AUD/JPY bears are directed to late December 2020 tops near 78.80.

The AUD/JPY currency pair is currently trading at 80.98, with a daily change of 0.05 percentages the same day.

AUD/JPY: Four-hour chart

(Source: FactSet)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

An e-commerce behemoth could be on the verge of making a huge foray into cryptocurrency.

So, what’s the deal?

A job offering for a “Digital Currency and Blockchain Product Lead” was recently posted on Amazon. The individual in charge of the e-commerce giant’s blockchain strategy and product roadmap will be tasked with filling the position.

Following a report from City A.M. on Monday, enthusiasm about Amazon’s digital currency plans reached a fevered pitch. Amazon is “absolutely” preparing up to take Bitcoin payments by the end of the year, according to the British financial journal, and plans to develop its own cryptocurrency by 2022.

Amazon, on the other hand, refuted City A.M.’s assertions, telling Bloomberg that “despite our interest in the industry, the conjecture that has ensued surrounding our precise plans for cryptocurrencies is not true.”           

Despite this, Amazon stated that it is keen to learn more about digital currencies and how they might be integrated into its large e-commerce network. The business stated, “We remain committed on investigating what this could look like for people shopping on Amazon.”

So, what’s next?

It would be a game-changer for the crypto business if Amazon accepted Bitcoin and other cryptocurrencies as payment. The action would immediately increase Bitcoin’s legitimacy and usability. As a result, the value of the cryptoasset would most likely increase.

Even if this happens, it will most likely take some time. In the interim, there are numerous dangers to be aware of. For instance, crypto investors should be on the lookout for a possible crackdown on stablecoin issuer Tether, which has piqued authorities’ interest in recent weeks after investors raised concerns about its reserve statements’ lack of clarity.

Source: Factset

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

AUD/USD last Week Price Prediction – The Australian Dollar Remains Very Weak

Paper currency. Australian money.

The Australian dollar has struggled last week, as we have been unable to breach above the 0.75 handle. However, if Australia continues to tighten its grip on the market, it will be intriguing to monitor.

The lockdown has already stretched from Sydney to Melbourne, and given enough time, the Australians will find a cause to lock down the rest of the country. At this moment, I believe the Australian dollar is poised to decline to 0.70, particularly if we can breach below the 0.74 mark.

If we wear down below that level, I believe the bearish trend will ramp up, and the scenario will indeed be more or less a danger event. The US Currency Index keeps threatening a breakout to the higher, indicating that the US dollar is gaining traction.

This would be fascinating to see if this plays out, because we are presently on the verge of a breakdown, and at that time, I would not only continue to be short the Australian dollar, but I would also be looking for ways to add to my position.

Source: fxempire

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

The crypto market is feeling the blues as GBTC shares become available

Bitcoin, despite its decline, continued to gain dominance

Despite its decrease, Bitcoin (BTC) maintained its dominance this week, accounting for 46.3 percent of market value, a concerning indicator for big altcoins. While Bitcoin (BTC) lost 6% this week, big altcoins lost even more. With an 11 percent decrease this week, Ethereum (ETH) has fallen below $2,000 and is already challenging important support at $1,800.

Polkadot (DOT), Dogecoin (DOGE), Uniswap (UNI), Solana (SOL), and Polygon (MATIC) are among the most popular cryptocurrencies, all of which are down by more than 20%. The current state of the market is one of indecision and inactivity. The trading activity on major cryptocurrency exchanges remained relatively modest, indicating investors’ cautious attitude.

Bank of America allowed some of its clients to trade BTC

The Grayscale Bitcoin Trust (GBTC) will release 16,240 BTC worth of shares on July 18. The announcement could cause Bitcoin values to fluctuate in either direction as investors adopt a wait-and-see attitude. Bank of America, the second largest bank in the United States, has apparently allowed some of its clients to trade BTC futures. Argentina was said to be introducing a measure earlier this week that would allow workers to take Bitcoin as payment.

France has advocated for an EU-wide cryptocurrency regulation that would give the European Securities and Markets Authority (ESMA) in Paris more power and control over the region’s booming crypto industry.

Paypal and Visa, for example, have decided to maintain Bitcoin and other cryptocurrencies. Paypal has stated that its clients will now be allowed to buy crypto for up to $100,000 every week, a five-fold boost in buying limitations. After reporting crypto-linked card usage of $1 billion or more in the first half of 2021, Visa released a new version of a physical Bitcoin Debit card in Australia.

Source: economictimes

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Why is Square entering the Bitcoin custodial industry, decrypting crypto trends?

Many people were not surprised by Square’s decision to enter the digital asset custody and service business. In June, at the Bitcoin 2021 Conference in Miami, Jack was at his eloquent best, revealing that Square was playing with the notion of a hardware wallet.

Square’s recent move is dissected

The global digital asset management (DAM) market is expected to expand at a compound annual growth rate (CAGR) of 12 percent from $3.4 billion in 2020 to $6.0 billion in 2025. Institutional institutions like Morgan Stanley and Goldman Sachs, as well as corporations, have recognised the digital currency space’s growth potential.

Secure custody alternatives for managing and using digital assets are in high demand around the world. Square’s desire to be a force to be reckoned with in this arena is self-evident.Wallets for digital currencies are used to receive, send, and store them. Hardware cryptocurrency wallets, also known as “Cold Wallets,” are more secure than “Hot Wallets” like desktop and smartphone wallets. Asset security has been raised by all market players, including retail and institutional investors.

Hardware Wallets’ Security

Hardware wallets have been known to be hacked in the past. Ledger, a Bitcoin hardware wallet supplier, was hacked in July of last year. More than 1 million user accounts were hacked. To establish itself as a strong and trustworthy player in the custody service space, Square would have to solve concerns about wallet security.

Source: Economic times

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Price of the Australian dollar against the Japanese yen remains pressed towards the 200-day moving average (DMA)

In a quiet Asian trading session on Monday, the AUD/JPY remains under pressure around 81.45. As a result, the cross-currency pair has failed to maintain Friday’s rally off the monthly low while remaining below a downward sloping trend line that has been in place since June 25. The MACD signs are also in favour of the selling.

However, the pair’s potential decline is hampered by an oversold RSI and proximity to the major moving average. For the time being, AUD/JPY trades are aimed at 200-DMA support near 81.20, followed by the 81.00 level. However, the pair’s further decline could be challenged by January’s high near 80.90.

The 50 percent Fibonacci retracement of the September 2020 to May 2021 upside, near 79.50, will be the key to watch if the bears keep the reins below 80.90. In the meantime, any correct pullback will be deemed mild unless it stays below a short-term resistance line near 82.30.

Following that, the bulls may be enticed by the recent swing high near 82.80 and April’s low near the 83.00 round figure.

Source: fxstreet

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.