Connect with us

Cryptocurrency

Ethereum Is Under Threat as Dollar Corrects Higher

Published

on


The increase of Ethereum has been driven by the decline in the US dollar which has dropped significantly lately. However, if positive economic data in the U.S. persist, the upward moving in the ETH/USD might come to an end.

Ethereum broke out to a new high in August recapturing the $400 level for the first time 2-years, but the rise and fall in ETH/USD could have been more of a function of the decline in the US dollar than investors entering into ETH/USD. The dollar has been under pressure as U.S. yields headed for all-time lows, but recent economic data in the U.S. has been better than expected which has helped the dollar gain traction and has capped the upward momentum in ETH/USD as well Bitcoin trading.

U.S. Yield Drop and Weigh on the Dollar

U.S. yield has traded down with the 10-year numbers hitting an all-time low of 50-basis points, but has rebounded back to the 70-basis point level. The decline was a function of very week U.S. data. In April the number of jobless claims moved above a record 22-million. The Fed moved to lower rates pushing them down to zero, which weighed on the 10-year yield and over the next few months pushed the benchmark to a record low.

The decline in U.S. yields weighed on the greenback. This took the dollar index, which is the dollar versus a basket of currencies, down from a high in March at 103, to a low in August at 91.75. It moved lower as the interest rates differential, the yield between the U.S. and other countries, moved in favor of the latter ones. Fear became pervasive that the dollar would no longer be considered the world’s reserve currency.

Change in Economic Data

As the calendar turned to September, data started to turn better in the U.S. Manufacturing information released by the Institute for Supply Management, showed that purchasing managers were upbeat. The ISM index jumped to 56 in August from 54. In July it was better than 54.8 that was expected by economists. The increase was the fastest improvement since late 2018. The ISM gauge was a low as 30 at the start of the pandemic but has moved higher helping to buoy the greenback at the beginning of September. The steady climb resembles the V-shaped recovery trend.

Ethereum Could Stall but 400 Seems to be Holding

The stronger than expected economic data has buoyed the dollar, which has initially capped the upside movement of ETH/USD. The exchange rate weekly price is moving away from overbought territory. The relative strength index (RSI) appears to have peaked near 80, which was above the overbought trigger level of 70. The movement down back below the 70-handle reflects accelerating negative momentum. Additionally, the fast stochastic, which is a momentum oscillator that measures both accelerating and decelerating momentum as well as overbought and oversold reading, generated a crossover sell signal in overbought territory. The current reading on the fast stochastic is 81, above the overbought trigger level of 80 which could foreshadow a continued correction in the ETH/USD.

Medium-term momentum is positive to flat. The MACD (moving average convergence divergence) index generated a crossover buy signal in July. This occurs as the MACD line crosses above the MACD signal line. The histogram is printing in positive territory with an upward sloping trajectory which points to grinding higher prices.

The Bottom Line

In summary, it appears that the movement of ETH/USD has been driven by the decline in the US dollar which has dropped more than 12% since hitting a high of 103 in March of 2020. ETH/USD has benefited and recaptured the $400 level and is currently consolidating near that range. The exchange rate is overbought and negative momentum is accelerating which means that the ETH/USD might correct even more. If positive economic data in the U.S. persist, the upward trend in the ETH/USD might be over.

Altcoin News, Cryptocurrency news, Currencies, Ethereum News, Market News

Having deep expertise in intercultural communications, Natallia is fond of foreign languages and cultures. She strongly believes that people should continually develop to stay on track, that’s why she permanently widens her knowledge in various spheres. Currently, Natallia is fully immersed in crypto, blockchain and financial techs.



Source link

Cryptocurrency

Coin Stock Jumped 6.16% Yesterday, 2% Up Now, Coinbase Acquires Data Aggregator Zabo

Published

on

By


Founded back in 2018, Zabo provides developers with an application programming interface (API) to connect to any cryptocurrency exchange, digital wallet, protocol, or account seamlessly.

Coinbase Global Inc (NASDAQ: COIN) stock closed Wednesday trading at $224.36, 6.16% higher than the opening price. However, COIN stock had retracted approximately 1.66% during today’s premarket trading session before gaining 2% when the market opened today. Although several factors contributed to yesterday’s pop, among them is the announcement of the Zabo acquisition. Notably, Coinbase announced the strategic acquisition of Zabo, however, it did not disclose the transaction details. As a result of the acquisition, Zabo’ score team comprising up to 10 members will be joining Coinbase.

“We’ve been lucky to know multiple folks on the Coinbase team for years,” said Christopher Brown, the other co-founder. “We saw that there were amazing opportunities to work together, which led to us officially joining forces.”

Zabo and Coinbase Bigger Picture

Founded back in 2018, Zabo provides developers with an application programming interface (API) to connect to any cryptocurrency exchange, digital wallet, protocol or account seamlessly.

Both companies have a similar objective of bringing the cryptocurrency industry to the mainstream market. However, Coinbase has been working towards widening its revenue collection avenues as competition grows in the crypto industry.

Moreover, its stock market has significantly depreciated since going public during the first half of the year. However, most of its investors remain optimistic in the future growth prospects, including Ark Invest led by Cathy Wood.

The acquisition is strategic as Coinbase seeks to venture into more crypto-related businesses. Furthermore, Zabo has been perfecting its services for the past three years. “Over the last three years, with the help of our amazing team, customers, investors and partners, we succeeded in establishing the Zabo API as the world’s most powerful tool for connecting to any crypto exchange, wallet, protocol or account,” noted Christopher and Alex, Co-Founders at Zabo.

Notably, Zabo raised $2.5 million last year to grow exponentially in the cryptocurrency industry. A year later, the investment has paid off after the acquisition by Coinbase.

Moonshots Capital co-founder and general partner Craig Cummings referred to the Coinbase deal as a huge milestone. On the other hand, he referred to the deal as a successful exit for the Zabo platform.

Coinbase has a reported market valuation of approximately $48.4 billion with 141.79 million outstanding shares. The valuation has given the company a chance to make more acquisitions in the past few months. Notably, the crypto exchange has in the recent past acquired Tagomi, a crypto exchange firm, and Skew among others.

next Business News, Cryptocurrency news, Deals News, Market News, News

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



Source link

Continue Reading

Cryptocurrency

JPMorgan Provides Private Bitcoin Fund for Wealthy Clients Despite CEO’s Disinterest in Crypto

Published

on

By


Banking giant JPMorgan has partnered with the NY Digital Investment Group to provide access to a Bitcoin Fund, despite Dimon disposition towards crypto.

JPMorgan Chase & Co (NYSE: JPM) now offers its private banking clients an opportunity to invest in an in-house Bitcoin Fund. The multinational investment bank is making this available in partnership with New York Digital Investment Group (NYDIG), a leading digital investment group. A subsidiary of Stone Ridge alternative asset managers, the NYDIG offers a host of activities which includes asset management and execution within a secure framework. 

The leading bank only made this announcement yesterday in a conference call to advisers. So far, JPMorgan has not received any investments from its target clients into the fund.

According to JPMorgan, the Bitcoin Fund will be presented in “the safest and cheapest bitcoin investment vehicles available on the private markets”. In addition, the private fund will seamlessly ease into a Bitcoin exchange-traded fund down the line. The bank already has plans in motion for such a product but does not currently have an ETF bid before the Securities and Exchange Commission (SEC). However, NYDIG has filed one, which is now under review.

JPMorgan CEO Is Anti-Crypto

According to JPMorgan, its recent developments do not change the skepticism the bank harbors towards cryptocurrencies. In the bank’s opinion, it is solely a business move designed to cater to the growing interests of its clients to invest in crypto. When media reports concerning the news first came out in May, Company CEO Jamie Dimon made his sentiments known shortly after that. He said: “I don’t care about bitcoin. I have no interest in it. On the other hand, clients are interested, and I don’t tell clients what to do.” 

In the past, Dimon has even shared stronger sentiments concerning digital currencies. Back in May, Dimon cautioned investors about Bitcoin and the entire digital currency industry. Speaking in congressional testimony to the United States House Financial Services Committee, Dimon however said that the bank will offer crypto services to clients and customers, regardless of his personal opinion. He said:

“My own personal advice to people is: stay away from it. That does not mean the clients doen’t want it. This goes back to how you have to run a business. I don’t smoke marijuana but if you make it nationally legal, I’m not going to stop our people from banking it.”

JPMorgan Bitcoin Fund Marks Growing Trend in the Financial Industry

Despite what its CEO or thinks about digital currencies, JPMorgan continues to enter the world of cryptocurrencies. Last month, the company began to allow its financial advisors to assist its wealth management clients with crypto investments. The JPMorgan Private Bank provides services that include access to Bitcoin funds, such as GBTC, through a JPMorgan brokerage account. Also, JPMorgan added crypto exchanges Coinbase and Gemini Trust Co. as banking clients last year.

JPMorgan’s recent move reflects an increasing number of traditional financial institutions making moves into the world of digital currencies. There has been a surge in client demand in recent times and an increase in the value of the tokens. In addition, other financial institutions like Morgan Stanley and DBS Group Holdings Limited are also getting into crypto.

 

 

next Bitcoin News, Cryptocurrency news, Funds & ETFs, Market News, News

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.



Source link

Continue Reading

Cryptocurrency

Fidelity Buys 7.4% Stake in Marathon Digital Holdings

Published

on

By


Marathon is a well-liked stock among institutional asset managers. Two days ago, the company declared a 66% rise in its Bitcoin month-over-month production.

American multinational services company Fidelity Investments has bought 7.4% stakes of Marathon Digital Holdings, which is a patent-holding company and the parent firm of Uniloc.

Marathon Digital Holdings currently functions as a digital asset technology company. The firm mines cryptocurrencies, targeting the Blockchain ecosystem and the production of digital assets. It manages 19000 miners, with an additional 100,000 electronic devices to be implemented in the next 12 months.

The agreement for the deal was concluded at $20 Mn on 22nd July. The shares were distributed across four index-based funds- The Extended Market Index Fund, Fidelity Nasdaq Composite, Fidelity Total Market, and Fidelity Series Total Market Fund. The exchange hoists Fidelity at par with companies like Vanguard Group, Susquehanna, and Blackrock, which already own 7.58%, 2.7%, and 1.59% stakes in Marathon. Even though the percentage distributed to each Index is small, most of the funds are famous in the retirement accounts.

Fidelity holds a top position as one of the world’s largest financial service companies. It has $4.9Tr in assets under a responsibility with more than 35 million clients all over the world. It is known to manage businesses, especially indulging in mutual funds and brokerage services. The purchase reflects the increasing trend among investors to conform to the crypto industry via traditional equity or debt securities.

According to ETF.com, Marathon is a well-liked stock among institutional asset managers with 18 exchange-traded funds currently held by the Marathon group. During a recent interview, Chief Executive officer Fred Thiel exclaimed at the recent affirmation gained by his firm. Thiel said that the past year has witnessed a skyrocketing increase in possession of the company’s stocks. He also added that the company focuses on deploying resources to utilize mining equipment, therefore it prefers to select partner agreements with hosting and power facilities.

Shares in mining stocks have become a public favorite due to their ability to follow the Bitcoin market with heightened instability. Two days ago, the company declared a 66% rise in its Bitcoin production (month-over-month). Marathon has mined 442.2 BTC priced at $16.6 Mn. The company holds a total of 6,225.6 Bitcoins at present, which are valued at $245 Mn. Where BTC increased to 240% since the beginning of this year, Marathon’s shares have peaked at 660% at the very same time.

The credit for the drastic increase in mining activities can be given to China’s recent clampdown on mining activities in the country. This resulted in a prominent decline in Bitcoin’s network hash rate since miners began immigrating to other crypto-friendly nations.

next Bitcoin News, Business News, Cryptocurrency news, Deals News, Investors News

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.



Source link

Continue Reading

Trending