FiboGroup Market Analysis 2018

[fibogroup.com]

As we wrote yesterday, the pound has experienced some wild swings over the last 24 hours which has now been exasperated by the resignation of 4 more ministers from UK Prime Minister Theresa May’s cabinet and some say it’s only a matter of time before the PM will be forced to resign.

With the tide turning against her, the PM remained strong telling parliament that her deal was the best way forward and a no deal scenario would be devastating for the UK

“The choice is clear. We can choose to leave with no deal, we can risk no Brexit at all, or we can choose to unite and support the best deal that can be negotiated,” Mrs May said.

Dominic Raab, the most high profile minister to resign this morning gave his reasons for exiting the government citing the current deal on the table betrays the promises made to the UK people, which he could not be part of

“Above all, I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election,” Raab said.

“This is, at its heart, a matter of public trust,” Raab said. “I cannot support the proposed deal.” He added.

The reaction by the British pound after the resignations was brutal with the currency having its biggest fall since 2017 and with the chances of a no deal Brexit now seemingly at an all-time high, the sterling may possibly break the lows of around $1.20, which occurred immediately after Britain voted to leave the EU

The low of $1.27 reached around 2 weeks ago will be a very important level as the day unfolds and if breached the level reached after Brexit may come sooner rather than later.

 

[fibogroup.com]

Bitcoin has finally broken out of its recent trading range and to many analysts surprise, it was to the downside tumbling more that 10 percent which just goes to show, the relative stability we witnessed in Bitcoin over the last few months may have been temporary.

The reason for the sudden slump is bitcoin Cash, usurper, which forked from bitcoin last year and is now forking again.

In previous instances, forking was pretty much tolerated by the market but it seems as if this time Investors decide it was time to bail.

So is $5000 the new bottom for bitcoin or are more losses in store for the crypto currency?

Analysts seem very divided over this question

“Bitcoin has just broken below a 12-month support band defined by the February, April, June and August-October lows, we would caution traders/investors from presuming this breakdown is a headfake,” said Rob Sluymer, technical analyst at Fundstart Global Advisors

On the other end of the spectrum, we have founder and CEO of BKCM, Brian Kelly who noted that the pullback may be a buying opportunity but cautions that anybody that doesn’t understand what forking is should be cautious about entering the market.

"People started selling. That triggered stops. Everybody got concerned, that’s what happened today, the entire market sell-down." Kelly said

This will be a "very short-term" event. I think it's probably an opportunity, In fact, we did some buying at my fund today (Wednesday) he added.

"If you don't understand what a 'hard fork' is, do not jump into that pool right now. It is the deep end." Mr Kelly said.

 

[Quinuiacl12]

Yes the oil prices will be boosted at the expense of Saudi and US relations. For the past few weeks there has been seen a destrcutive realtionship between the two countries. US has threatened the Saudi Arabia and Saudi's have done the same. Lets see what happens next and hope for the best.

 

[fibogroup.com]

Bit coin has now risen around 15 percent in the last 3 days, continuing its high volatility that was witnessed earlier in the year and still leaving pundits divided on whether the crypto currency is here to stay or it’s a disaster waiting to happen.

Bitcoin has now fallen from $19,000 to around $4250 in today’s trading session, which means investors who got in at the top of the market and didn’t get out are sitting on some serious losses.

"If you had invested in bitcoin a year and half ago, you're profitable. If you had invested when the price was $19,000, it's a disastrous investment," says Campbell Harvey, a finance professor at Duke University.

"With bitcoin, you've got some people that fundamentally believe that it's worth zero and others that fundamentally believe that it will soon be worth $1 million a coin. That is a massive amount of disagreement and uncertainty. It translates into extreme volatility." He added.

One of the most prominent financial voices floating around is New York Stock Exchange chairman Jeff Sprecher who believes rumors that bitcoin will become worthless are unfounded, and predicts that the crypto currency is here to stay for the long term.

He also noted that out of the many cryptocurrencies available, Bitcoin is the standout performer and is likely to retain this crown

"Somehow bitcoin has lived in a swamp and survived. There are thousands of other tokens that you could argue are better but yet bitcoin continues to survive, thrive and attract attention,” Mr Sprecher said

"Often times in finance, it’s not about being the best — it turns out to be about being the broadest and the most commonly accepted and for whatever reason bitcoin has become that. The unequivocal answer is digital assets will survive. He added.

 

[Esannniki12]

Considering that Bitcoin is actually an algorithm the question is how its value should be measured, as non-material asset? On the other side, following trading law, if two parties agree to make exchange at agreed price, than traded subject value is exactly that price...