We’re back with your weekly crypto market outlook. In this weekly article, we like to take a look-back at last week and what’s coming up in this one. We’ll analyse some market events and also include some in-depth price analysis on some of our hottest trading pairs. Ready to go? Let’s jump in!
Market Highlight — PayPal Jumps Off the Libra Train
PayPal has officially pulled out of the Libra Association, the company announced on Friday.
A PayPal spokesman stated that the company had “made the decision to forgo further participation (in the project)...”, but didn’t give a solid reason as to why. It’s likely that the rising tide of hostility to the project is forcing partners and well-known and respected brands to think twice about their association with it.
Facebook unveiled their controversial Libra project back in June. The company plans to launch a stablecoin designed to bring financial services to millions of unbanked individuals around the world. You might recall that the project was met with immediate regulatory backlash (and has been bogged down with that ever since).
Politicians and officials in a number of countries fear that Facebook’s latest foray into tech might just run the risk of destabilising the global financial status quo. France and Germany, among other nations, have vowed to block the project, while the US’ Maxine Waters has called on Facebook to scrap all development completely.
PayPal’s decision is the latest blow for Libra, right ahead of its inaugural meeting, coming up on the 14th October, and the subsequent signing of its charter, formally creating its governing council.
The stable coin has the potential to shake up the entire crypto industry in the future. We recommend keeping a close eye on developments over the coming weeks and months.
At the beginning of last week (30.09), the total crypto market capitalisation was $213.37 billion. The market closed the week with a total market capitalisation of $215.58 billion, signifying a slight increase by $2.21 billion (1.04%) over the week.
Our Hottest Instruments
Last week’s hottest pairs at our exchange were BTC/USD, ETH/USD and EOS/USD. Now, let’s have a look at these instruments and see what they’ve been through and what might be on the horizon...
A shaky week for BTC saw it dip below the $8,000 mark, currently sitting at 7,862 to the dollar at the time of writing. Bitcoin is down by just under 2% over the week.
If the bulls defend the next support zone at around $7,400, BTC will be in a solid position to begin pushing for a break out. If that happens, we may well see a move up toward the $9000 mark. The near-future targets are the resistances at around $8,200 and $8,500.
More aggressively minded traders might choose to retain their stop-losses at around $7,700.
ETH has had a bumpy sort of week, too. It began trading in a range after it failed to surpass the $185 resistance against the US Dollar. Despite this, Ether (ETH) is bravely holding onto its position as the largest altcoin by its market capitalisation, which currently stands at $18.84 billion. By contrast, the second-largest altcoin, Ripple’s XRP, trails far behind with a market cap of $10.9 billion.
The first immediate objective is to hit that $180-$185 target and set up a new resistance level around that area. Following that, ETH traders will be hoping the token begins to push toward the $198 and $200 resistance levels.
Over the week, Ether has also gained about 2.5%.
EOS had been trading close to the resistance of $3.15 for the last few days, that was before the dip to the current price, around $2.90 at the time of writing. Before the dip, there were signs that sellers are losing their grip. If the price continues to slip toward the $2.40 level, we may well see it degrade to yearly lows.
Crypto News — In Case You Missed It
- Tim Cook rules out Apple crypto — Apple CEO Tim Cook has said that he is not particularly comfortable with private companies creating their own cryptocurrencies. As a result, he’s officially poured cold water on those rumours that Apple was planning on releasing its own cryptocurrency token. Part of Cook’s decision is likely to have been influenced by the regulatory problems that Facebook’s Libra stablecoin is facing — which have only been compounded with the pulling out of prominent partner PayPal.
- Crypto is the future of banking — The President of the Federal Reserve Bank of Philadelphia, Patrick Harker, wholeheartedly believes that central banks will have no option other than to take the digital currency route in the future. He told a community banking conference that he felt that “it is better for us to start getting our hands around it (crypto). If that opinion catches on, it’ll likely be good news for the wider crypto market.
Crypto — Did you know...
The FBI made $48m in 2013 by auctioning off 144,000 bitcoins that it had seized from illegal activity. Sounds good, right? Well, had they waited until today, they could have scooped up a cool $1.14 billion for the same amount. Do you think they’re kicking themselves? We would be...
See you soon,
The DSX Team