Mati Greenspan Weighs In

Mati Greenspan, Senior Market Analyst at eToro, the world’s leading social trading platform, provides commentary on today’s traditional and crypto markets. Highlights from Mati include:

2 Steps Forward, 1 Step Back: The banking industry is still playing catch up on how to engage with blockchain and cryptocurrencies. While investment in development continues to grow, it’s still quite difficult for those starting businesses in the industry to get a bank account.

Traditional Markets Healthy, Showing Propensity for Risk Tolerance: Indices are showing modest gains while safehaven currencies are taking a back seat.

G7 Meeting Trumped By Trump/Kim Next Week: Fed & ECB meetings will give market greater insight into monetary policy for the two most-traded currencies.

SEC: Bitcoin & Other Money Tokens NOT Securities: SEC Chairman Jay Clayton Weighed In. ICOs will require SEC approval. Clayton’s comments leave more questions than ever.

Two Steps Forward, One Step Back — eToro Daily Market Commentary

By Mati Greenspan, Senior Market Analyst

“It seems in crypto it’s always two steps forward and one step back.

Even though we’re seeing more clarity from global regulators and governments, it seems the banking world just isn’t sure how to engage with blockchain technology and cryptocurrencies. 

On the one hand we see millions being invested into research and development new projects, yet on the other hand, anyone wanting to start a new business in the cryptocurrency or blockchain spaces is going to find it difficult to get a bank account.

We’re increasingly hearing of banks and other institutions investing more heavily in cryptocurrencies, and we’ve seen recently some good news with crypto start-ups getting more access to bank accounts.

Of course, progress isn’t always smooth. A few days ago, my good friend Chris Coney posted this video showing how an unknown financial institution has essentially put a blockade on his crypto related business.

In time we believe banks will embrace the blockchain and cryptocurrency world, but it looks like some banks are taking longer than others to warm up to the budding industry.”

Please note: All data, figures & graphs are valid as of June 7th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Markets are looking healthy today. The indices are showing modest gains across the board, which led to a new high for the NSDQ100 yesterday.

Of course, with the Nasdaq’s stellar performance, the @OutSmartNSDQ copyfund has continued to do even better.

The market is showing a pretty clear propensity to risk-taking so far this month. We can see this quite clearly in the currency markets, where the “safe haven” currencies have been taking a backseat.

Crude oil, on the other hand, is not doing so hot. Yesterday’s inventories announcement revealed that there’s a lot more oil being stored in the USA than analysts thought.

Taking a look at that long-term trendline we’ve been watching, it does seem like we may have a breakout on our hands.

What’s next?

Of course, everyone’s looking forward to the G7 meetings this weekend but next week should be really exciting. Of course, we have the much-anticipated meeting between Trump and Kim Jong Un, which seems like it’s a go at this point. Pools are already starting on how long it will last. From what it seems, it could be anywhere between 5 minutes and two days.

Major meetings from the central banks in both the United States and Europe will give us greater insight into monetary policy for the two most-traded currencies.

The Euro slid about 900 pips against the Dollar from April 19th to May 29th. As mentioned above, it’s seeing a bit of a recovery (purple circle) in June. 

If Mario Draghi does in fact announce the end of Quantitative Easing, as some people seem to be indicating, it should have a positive effect on the Euro, especially if we see slower rate rises in the USA.

Crypto Secure

Speaking on CNBC yesterday, SEC Chairman Jay Clayton weighed in on the big question every US cryptotrader has been asking lately. 

According to Jay, Bitcoin or other ‘money tokens’ are not securities, but ICOs will definitely require SEC approval pursuant to the laws and regulations that are already in place for other assets.

He did stop short of stating whether Ethereum or Ripple’s XRP are securities. So even though further clarification is clearly needed here, Jay maintains that there’s no need for any adjustments to the current rules.

If anything, we’re left with more questions than answers. We already knew that securities tokens will need to be compliant. However, the lines between ‘securities tokens’ and ‘utility tokens’ seems to be more blurry than ever.

The price of bitcoin does seem to have taken a minor dip following the interview but has more than recovered since.

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