Mati Greenspan, Senior Market Analyst at FX broker eToro, has provided his daily commentary on traditional and crypto markets for June 21, 2019. The text below is an excerpt and does not contain the full analysis.
The US Stock market hit a brand new all-time record high yesterday due to a sudden shift in policy from global central bankers who have stated that they’re ready to step in and assist the markets if needed.
Yeah… think about that one for a moment.
- US Stocks Reach Record High: The US Stock market hit a brand new all-time record high yesterday as global central bankers have stated that they’re ready to step in and assist the markets if needed.
- eToroX Programs Assets Onto Libra Blockchain: eToroX Labs Blockchain Science team has already implemented an initial version of eToro’s tokenized assets on the Libra Network. eToro’s Chief Blockchain Scientist Dr. Omri Ross is available for interview.
- Oil Rises on Geopolitical Tension: Oil’s price has been reacting to each news update as tensions escalate between the US and Iran. Meanwhile, gold crossed its highest point since 2013.
Please note: All data, figures & graphs are valid as of June 21st. All trading carries risk. Only risk capital you can afford to lose.
Tensions are high in the Middle East at the moment. So far we’ve seen several oil tankers attacked near the Strait of Hormuz and yesterday Iran shot down a US drone that they maintain was over Iranian airspace and that they tried to warn off. The US says that the drone was in international waters and was reportedly about to retaliate but the mission was called off by President Trump at the last minute.
Needless to say, crude oil is reacting to every news update. Here we can see the long term chart on the left and short term on the right.
Protestors are also back on the streets of Hong Kong. Last night thousands surrounded the Police headquarters there.
Meanwhile, it does seem like Trump and Xi intend to meet at the G20 meeting next week. However, political pundits don’t seem to expect much more than an agreement to continue talking.
With all the above happening, the stock markets are showing absolutely no sign of letting up the strong Fed-led rally. Neither does gold, which rose above $1,400 per ounce this morning, its highest level since 2013.
The Libra Catalyst
Going into the announcement from Facebook, we had repeatedly stated that the crypto community felt like this would be a net positive for the industry.
Not only is it likely to bring a massive amount of awareness to the space but it may also end up creating a new portal where people can purchase bitcoin or other cryptos with Libra.
Well, the first part of that statement is already coming true. Tech media, financial media, and even mainstream media have been writing up a storm. At this point, just about everybody in the world who likes to watch or read the news, except maybe in China, knows about Facebook’s intention to launch a cryptocurrency.
Ripple Labs has explicitly stated that because of the Libra launch they have just had their best week ever, and many clients who’ve been on the hook for a while have now closed a deal with them.
Here at eToro, we are quite fascinated by it. Due to the recent revelations about Facebook’s issues with user privacy, it certainly pays to be cautious, but overall what they’re trying to build seems very similar to the internet of value that we’ve often envisioned.
We still don’t know how that will play out but we’re already prepared to run with it, should the project get off the ground. Some of you may recall, that eToro purchased a Danish company called Firmo in March.
Well, Dr. Omri Ross and his team have already programmed their own digital assets on top of the Libra blockchain, and are ready to be deployed once/if the network goes live. According to Omri, coding in Move was “a pleasurable experience.”
For entertainment this weekend, make sure to catch this special panel on BlockTV. Their Blockchain on Booze segment is always fun but this one was extra special.
Wishing you and your loved ones an extremely pleasurable weekend.
Mati Greenspan can be found on LinkedIn, Twitter, or etoro.
This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.