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[Stan NordFX]

Forex Forecast and Cryptocurrencies Forecast for March 02 - 06, 2020​

First, a review of last week’s events:

- EUR/USD. The situation in the financial markets is completely under the control of the coronavirus for many weeks in the run. And if many traders in 2019 complained about the lowest volatility of the EUR/USD pair in the history of its existence, the situation has changed dramatically in 2020. Yhe amplitude of its fluctuations exceeded 200 points last week alone, and the growth of the euro on Thursday 27 February was the fastest since May 2018. And all this due to the Covid-19 virus, which causes investors to avoid investing in risky assets, preferring quieter havens.
Global and US stock indices continue their decline, having fallen more than 10% from the February highs. Suffice it to say that only the S&P500 has lost about 15% since February 18. The information that more than 8 thousand people were monitored in California because of the epidemic only increased the panic among investors who are actively getting rid of both American stocks and US dollars.
As a result, thanks to sharply increased demand for funding currencies such as the euro and the yen, the continuous growth of the dollar, which we observed from 01 to 20 February, has finally stopped. And those traders who had enough nerves and money to withstand a drawdown on long positions of 310 points, were able to breathe a sigh of relief. The pair has been growing all week, reaching a local high at 1.1053 on Friday, February 28, followed by a correction and a finish at 1.1030;

- GBP/USD. If the dollar does not feel very well against the background of the coronavirus, the British pound feels even worse against the background of the consequences of Brexit. The bearish forecast, which was supported by the majority of experts (55%), turned out to be absolutely correct: the pair continued to move in the medium-term downward channel and, as expected, after several attempts, broke the February 20 low of 1.2850. Then the fall became a landslide and, after flying for a few hours about 125 points, it found the local bottom at 1.2725. This was followed by a rebound up, and the pair ended the five-day period at 1.2820;

- USD/JPY. The vast majority of analysts (75%) had predicted the growth of the Japanese currency, but no one had expected such a result. The flight from the dollar and the growing demand for hedging currencies allowed the yen to demonstrate a phenomenal growth of 410 points: starting the week at 111.60, the dollar fell to 107.50 on Friday evening, updating the lows of 2020. As for the final chord of the week, after the correction, it sounded in the 108.00 zone;

– cryptocurrencies. It is possible that the Wall Street old wolf, Warren Buffett, who turned his back on cryptocurrencies with disdain, is right. All sorts of Bitcoin gurus and crypto enthusiasts have recently criticized him, convincing us that BTC has become a reliable asset - a safe haven in which one can safely invest their funds. What do we see in reality?
The euro and the yen have been rising against the dollar all week. And if Bitcoin is a hedge asset as well, its quotes would also have to go up. But it was exactly the opposite. The dollar was flying down, and Bitcoin, along with top altcoins, including Ethereum (ETH/USD), Litecoin (LTC/USD) and Ripple (XRP/USD), were flying down even faster. Having fixed a monthly low of $8.455 on February 28, the BTC/USD pair lost almost 12.5% of its value over the week. The total capitalization of the crypto market decreased by 15%, and the Crypto Fear & Greed Index, froze in a state of "fear", having fallen to the level of 40.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. According to the Chicago Mercantile Exchange (CME) analysts' forecasts, the probability of an interest rate cut at the next meeting of the US Federal reserve on March 18 is 90%. (For reference: at the beginning of February, this figure was only 10%). If this happens, we can expect the dollar to fall. Data on the labor market, which will traditionally be published on the first Friday of the month, March 06, can also play against the US currency. Thus, according to forecasts, the NFP indicator may fall from 225K to 176K. On the other hand, the ISM business activity index is likely to stay above the critical 50.0 mark, which is a positive factor. In this situation, it is likely that reports from the front of the fight against coronavirus will continue to determine the quotes of the EUR/USD pair.
At the time of writing this forecast, 60% of experts, supported by 70% of oscillators and trend indicators, look to the north, expecting the pair to grow. The goals are 1.1055, 1.1100, 1.1175 and 1.1240. The opposite view is supported by 40% of analysts and 30% of indicators that are in the overbought zone or colored red. Supports are 1.0950 1.0900, 1.0830 and the February 20 low 1.0777;

- GBP/USD. In contrast to the dollar, the probability of reducing the interest rate on the British pound, on the contrary, falls. According to Bank of England Board member John Cunliffe, who has been responsible for financial stability since 2013, the regulator expects the inflation to rise. Due to the positive dynamics of the labor market and the growth of average wages, the consumer price index may even exceed the target level of 2%. And in such a situation, lowering interest rates is simply not necessary.
In addition to Cunliffe's statements, markets are concerned about what Bank of England Governor Mark Carney will say in his speech on Thursday 05 March. Among the main issues is the reaction of the British regulator to the fall in stock markets due to the coronavirus epidemic. In addition, investors are also interested in the purpose for which the Bank of England is increasing its gold reserves. The UK has recently purchased a record amount of this metal worth $5.33 billion in Russia alone, which is 12 times higher than the usual volume of purchases.
Given the difference in the impact of the Covid-19 epidemic on the US and UK markets, as well as the upcoming reduction in interest rates by the Fed, most experts (65%) prefer bulls, expecting the GBP/USD pair to return to the 1.3000-1.3070 zone, and possibly even 100 points higher. Graphical analysis on D1, as well as 15% of oscillators on H4 and D1 that give signals the pair is oversold, agree with this development.
A minority of analysts (35%), most oscillators (85%), and almost 100% of trend indicators side with the bears;

- USD/JPY. It is clear that the absolute majority of indicators here are colored red. However, it is already 25% of the oscillators that are in the oversold zone, which may indicate if not a complete reversal of the trend, then at least a strong upward correction. 65% of analysts also expect the pair to rise. The nearest resistance level is 109.25, the nearest target is a return to the zone of 109.65-110.25, the next target is the height of 112.00. It can be achieved by reducing the panic in global stock markets caused by success in the fight against the coronavirus. Over the past week, the number of Covid-19 patients decreased by an average of 1,600 people per day. And in the coming week, the number of cured patients may exceed 50% of the number of cases.
Of course, we would very much like to see the epidemic of this infection go down. But if this does not happen in the next few days, the dollar may continue to fall, and the pair will break through the support of 107.50, 106.65, 105.65 one after another and approach the August 2019 low in the area of 104.45;

– cryptocurrencies. Against the background of space forecasts of his colleagues, the head of the Binance crypto exchange, Changpeng Zhao, behaved interestingly, making a statement that looks more like persuasion. According to him, if Bitcoin does not double in price as a result of the halving, the industry will face big problems. The number of miners will begin to decrease. In addition, the asset risks losing the support of large investors who expect its value to grow. "In May, miners will lose part of their earnings in cryptocurrency terms. Bitcoin should compensate for this event in dollars. If the asset is not able to provide the miners with at least similar conditions, most of the players will simply leave the industry. This cannot be allowed to happen!”, - Zhao convinces his colleagues.
Whether his persuasions will work in the future is unknown, but the majority of experts (45%) are pessimistic so far, expecting a decline in the BTC/USD pair to the $8,000-8,250 zone. There are currently 30% of optimists among analysts. In their opinion, the fall of the last two weeks is just a correction, and we will soon see Bitcoin storm the height of $10,500 once again. As for the remaining quarter of the experts, they have not been able to form an opinion.

Roman Butko, NordFX


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #usdchf #forex #forex_example #signals #forex #cryptocurrencies #bitcoin

https://nordfx.com/

 

[Stan NordFX]

Bitcoin: Secrets of Profitable Trading​

Bitcoin: although this currency is virtual, many people earn and have already earned real millions of dollars thanks to it. More than 1,000 people have become owners of fortunes with six, seven, eight zeros, and five people have become billionaires. Moreover, one does not need to work until a very old age: according to Forbes, the average age of crypto millionaires is only 42.

The past (2010-2019):
Turning 11 dollars into 1,000,000

On May 1, 2017, one bitcoin (BTC) cost 1,600 US dollars, and on December 10 of the same year, it was already worth almost 20 thousand! Or rather, 19.187 dollars. It is easy to calculate that the owners of this cryptocurrency were able to make a profit of 1100% in eight and a half months. The events of the next 2018 were called by NVIDIA CEO Jensen Huan by an apt word "crypto hungover", and the well-known financial strategist from Wall Street Tom Lee called them "crypto winter". The price of this virtual currency quickly flew down and, a year later, on December 9, 2018, it reached its low of 3,215 dollars, "shrinking" six times.
Various forecasts had been given for the past year: from a complete collapse of Bitcoin to the rise to the $100,000 mark. And now we can call the exact figure – this main cryptocurrency cost $7,200 per coin at the end of 2019, having risen in price more than twice in a year.
"Bitcoin, despite all the rate hikes, rose by 110% in 12 months, - says the NordFX broker leading analyst John Gordon, - the S&P500 index rose by 22.8%, and gold added 19% over the same period. The average yield on dollar bank deposits is only 0.5-1.5%."
According to CNN calculations, Bitcoin is the most profitable asset in the last 10 years. 1 dollar invested in this cryptocurrency at the beginning of the decade is now worth $90,000. This means that if one invested some 11 dollars in BTC in 2010, now they could become a millionaire. And although the stock market has been under the influence of bulls all these years, other assets fade in comparison with Bitcoin, - $1 invested in the shares of American companies turned into $3.46. This may be an impressive growth for the stock market, but for the crypto market, such results are insignificant, just compare $90,000 and $3.46.

Future (2021-2023):
Turning 8,000 dollars into 250,000

Bitcoin is certainly the main cryptocurrency in the world, leading by a huge margin. Analysts at Canaccord Genuity believe that by 2021, its rate will reach $20 thousand, the head of the BitMEX exchange Arthur Hayes calls $50 thousand, and their colleagues from Galaxy suggest that this is not the limit, and under certain conditions, the main cryptocurrency may rise in price to several hundred thousand dollars. The well-known venture investor Tim Draper supports his colleagues, he believes that the capitalization of Bitcoin will be 5% of the entire world economy by 2023, that is, it will approach $5 trillion ($250 thousand for 1 coin).
But all this is in the future. And all these are predictions that, as we know, can come true, or may, on the contrary, be empty speculation. What about now, the real present?

Our days (2020, January 01-14):
Plus 1056% in two weeks

Let's look at the Bitcoin exchange rate for the first two weeks of 2020 and calculate how much an ordinary person could earn by investing in this cryptocurrency.

Option 1. So, on January 01, its quotes were $7,200, and on January 14 - $8,800. And if you had bought it on a crypto exchange, you would have earned $1,600. That is, your profit would be 22% in just 2 weeks! Is it a lot? Pretty much so! You are unlikely to have received even $5 on a bank deposit over the same time. And here, it is $1600! But even this profit of yours could have become many times greater if you had taken advantage of margin trading.

Option 2. "In order to open a transaction, and, simply put, buy one Bitcoin," says John Gordon of NordFX – "our clients only need to have $150 in their account, and we will credit the rest. This happens automatically, without any collateral and paperwork, you just need to open a trading account with us online."
And what happens in this case? It seems to be the same as for Option 1. If you buy Bitcoin on January 01 and sell it on the 14th, you get a profit of $1600. But at the same time, you actually invest in the transaction not $7,200, but almost fifty times less, only $150. Accordingly, your profit will be almost fifty times more, that is, 1056% in two weeks!

What else one should wish, you would say. Just open an account, buy Bitcoins and wait for them to make you a millionaire. Indeed, the prospects for this cryptocurrency, according to a number of experts, look quite rosy now. However, if you look at the Bitcoin quotes, you can see that it is capable of not only growing rapidly, but also of falling rapidly. And what should one do in this case?

Option 3. Another advantage of working with professional brokers like NordFX is that they allow their clients to earn not only on the growth of assets such as Bitcoin, but also on their decline. For this, it is enough to open a sell position with the broker or, in other words, to bet that the price of this cryptocurrency will go down. And if it turns out to be correct, you will get a considerable profit as well.
Let's have a look again at the first two weeks of 2020. During this time, the value of Bitcoin not only grew, but also fell at certain points. So, in the period from January 08 to 09, in just a few hours, it fell from $8,440 to $7,675, that is, Bitcoin lost $785 in price. If you had opened a sell position at that time, you would have earned the same $785, and invested only $150. In other words, you would have increased your capital almost five times in one day.

"In fact, it is unlikely that anyone can open and close transactions with 100 percent accuracy," John Gordon comments on the examples above. – This requires knowledge, experience, and intuition. Strong nerves are also of use, especially if the price goes against you. Many people lose their money. But the fact that you can get huge profits from trading cryptocurrencies is an undeniable fact. Thousands of people who, starting from scratch, were able to earn huge fortunes in the hundreds of thousands and millions of dollars is a clear proof of this. So, the virtual market is a way to real money. Big money».


Short Information on NordFX

NordFX is an international brokerage company with more than 10 years of successful work in financial markets. The number of accounts opened in the company by clients from almost 190 countries exceeds 1,250,000 today.
Since 2008, NordFX has been awarded more than 50 prestigious professional awards, including 5 awards for outstanding achievements in crypto trading:

– Best Cryptocurrency Broker 2019 (Fxdailyinfo Awards)
– Best Crypto 2018 Broker (MasterForex-V Expo)
– Most Trusted CryptoCurrency Broker 2018 (Global Brands Awards)
– Best broker for Trading Cryptocurrencies 2018 (International Business Magazine)
– Best Broker In Asia Crypto 2017 (Forex Awards Ratings).

https://nordfx.com/

 

[Stan NordFX]

Forex Forecast and Cryptocurrencies Forecast for March 09 - 13, 2020​

First, a review of last week’s events:

- EUR/USD. It seems that now one can ignore the macroeconomic indicators, which previously not only had an impact on the quotes, but also could reverse trends by 180 degrees. The situation in the financial markets has been completely dominated by the coronavirus for many weeks on the run, which now affects not only the health of people, but also the actions of governments and Central banks.
Global regulators are massively lowering interest rates. The effect of a bombshell was produced by the decision of the US Federal reserve, taken at an emergency meeting convened for the first time since the 2008 crisis, to lower the key interest rate from 1.75% up to 1.25%. This decision was the outcome of a teleconference with the participation of Finance Ministers and Central bankers of the G7 States on monetary policy in the face of the coronavirus Covid-19.
Come from war, you belong to war, and a lull on the fronts of the fight against this infection is not yet expected. The amplitude of fluctuations of the basic currency pairs breaks all the trading strategies created in a quiet and calm 2019. The DXY dollar index lost 1.7% over the past week, while it had been not far from 3-year highs just two weeks before.
Starting from January 01 to February 20, 2020, the dollar rose against the euro by 460 points, which is an impressive figure in itself. But onwards and upwards: having made a U-turn, the EUR/USD pair has soared by more than 640 points in just the last two weeks! And all these jumps, both up and down, took place without any serious corrections, knocking out first the bulls, and now the bears. The height of only one daily "candle" on Friday, March 06, was more than 140 points.
It should be noted that in general, the forecast given last week by the majority of our experts (60%) and supported by 70% of the indicators was correct. The new year's high at 1.1240 was named as the goal the pair was supposed to reach. However, on the last day of the trading session, against the background of an 18% collapse in the yield of 10-year us bonds, the pair did overcome this resistance, reaching a peak of 1.1355, and it ended the five-day period at 1.1300;

- GBP/USD. Surprisingly, the fact is: no matter what happens in the world in general, and in the UK in particular, the GBP/USD pair repeatedly returns to the iconic support/resistance zone of 1.3000 for the fifth month in a row. This was also the case last week: after finding the local bottom at 1.2735, the pair flew up almost 300 points and finished at 1.3030. This fully confirmed the forecast given by the majority (65%) of experts who predicted the pair's return to the 1.3000-1.3070 zone;

- USD/JPY. The flight from the dollar and the growing demand for hedging currencies allowed the yen to demonstrate a phenomenal two-week growth of 720 points, i.e. by 6.4%. However, analysts' forecasts were even bolder. They expected that, supported by the coronavirus, the pair will break through the support of 107.50, 106.65, 105.65 one after another and approach the August 2019 low in the area of 104.45. The supports were broken indeed, however, the pair failed to achieve its goal: the local low was recorded on Friday, March 06 at 104.98, and the final chord sounded at 105.35;

– cryptocurrencies. We doubted in the last review that Bitcoin has actually become the same hedge asset as the euro or, even more so, the yen, as many crypto gurus have tried to prove to everyone. As it turns out, we are not alone in our doubts. Billionaire, former Wall Street banker and Bitcoin enthusiast Michael Novogratz was surprised to find that Bitcoin quotes were rolling down at the same time as the dollar and stock indices in the last decade of February. "How did BTC stop being an asset for hedging risks and start trading as high-risk securities? Novogratz exclaimed on Twitter. "It hurts!"". In his opinion, those traders who lost on the stock market started shorting Bitcoin in an attempt to catch up, and eventually drove the quotes down.
In fairness, it should be noted that the reference cryptocurrency has tried to restore its reputation last week. However, it failed: having lost more than $2,000 in price over the previous two weeks, it only won $730 back. This success against the background of the explosive growth of the euro and the yen looks quite modest. So it's probably too early to talk about Bitcoin as a truly protective asset.
As for such top altcoins as Ethereum (ETH/USD), Litecoin (LTC/USD) and Ripple (XRP/USD), they have traditionally followed in the wake of the BTC/USD pair. The capitalization of the crypto market in the past week has remained almost unchanged: at the level of $256 billion, the Bitcoin Crypto Fear & Greed Index has also almost frozen in place: the drop from 40 to 39 points is simply not worth taking into account.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. 100% of the trend indicators on H4 and D1 are colored green. But 25% of the oscillators on D1 indicate that the pair is overbought, which can be a strong signal for a downtrend reversal or a serious correction. Graphical analysis on H4 looks down as well. (Although, one must say, coronavirus hardly pays attention to divergence and RSI, Stochastic or MACD readings).
As for fundamental analysis, at the moment the situation looks ambiguous. On the one hand, the probability of another rate cut at the next meeting of the US Federal Reserve on March 18 is close to 100%. Moreover, this reduction may become the next stage of the cycle, as a result of which the rate will be at the level of 0.5% or even lower at the end of the second quarter – President Donald Trump calls for lowering the rate to 0%, providing additional liquidity to private banks and easing monetary policy as much as possible.
Falling interest rates play against the dollar. And then, once again, the yield on 10-year US bonds may fall. But, on the other hand, the situation in Europe is even worse. First, the Eurozone economy is much more strongly correlated with the Chinese economy. And secondly, if the Fed still has room for maneuver and further rate cuts, the ECB has almost no such space. The deposit rate for commercial banks in euros is already in the red and is -0.5%.
A representative of the ECB admitted the possibility of further reduction of already negative interest rates last week. However, whether the European mega-regulator will decide to take such a step may become clear after its meeting on Thursday, March 12.
As for analysts' forecasts, according to most of them, as the situation with the coronavirus resolves, the situation on the financial markets will stabilize, and the EUR/USD pair will return to the range of 1.1000-1.1100. 60% of experts voted for this result in the weekly perspective, 70% in the monthly perspective, and 80% in the medium – term perspective. The nearest strong supports are 1.1240 and 1.1175.
40% of analysts have voted that the dollar will continue to fall in the coming week and the pair will reach the 1.1450-1.1500 zone;

- GBP/USD. The pair has once again returned to the medium-term Pivot Point 1.3000 zone. Graphical analysis on H4 predicts the pair's movement in the side channel 1.2860-1.3070 for the next few days, while on D1 the range of weekly fluctuations is naturally wider:1.2760-1.3170. But in both cases, the pair eventually returns to the 1.3000 horizon.
95% of the trend indicators and 75% of the oscillators on both timeframes look north, but 25% of the oscillators are already in the overbought zone.
As for the experts' forecast for the next week, it is impossible to give someone an advantage – a third of them have voted for the pair's growth, a third for its fall, and a third for a sideways movement. However, when moving to the forecast for the month, the scales are tilted towards the British currency¬ – 60% of analysts believe that the pair will be able to reach the 1.1400-1.1500 zone by the end of March;

- USD/JPY. It has been repeatedly stated that market fears of the Covid-19 epidemic force investors to redirect cash flows towards protective assets. And here one should pay attention to the dynamics of the Fear Index VIX, which is one of the measures of expectation of stock market volatility. It is generally accepted that if the VIX has reached the 40% mark and continues to grow, the stock exchange has started to panic. So, over the past half-month, this index has grown from 15% to almost 47%. If you add a drop in the dollar to the collapse of US government bonds, it becomes clear that in such a situation, the yen is a big winner. "Country of the rising yen" – that is how many investors now call Japan.
Market fears are also reflected in the readings of technical analysis tools. 100% of trend indicators and 85% of oscillators are now colored red.
The remaining 15% of the oscillators give signals that the pair is oversold. Following them, the majority of experts, supported by graphical analysis, expects the turn of the pair up. It is clear that the trend change to an uptrend is directly related to the success of the fight against Covid-19. Therefore, the forecasts for the coming week are very cautious: only 55% of analysts have voted for the pair's growth here. But the medium-term forecast looks much more optimistic for the dollar: its growth relative to the yen is expected by 80% of experts. The nearest resistance is 107.70, the goal is to return to the 108.25-109.65 echelon.
The support zone is 104.45-105.00. It was at the peak of the aggravation of trade risks that the price rested not only in 2019, but also in 2018. And if the pair manages to break through this support, the path for it will be open to the lows of 2016 in the area of 99.00-101.00;

– cryptocurrencies. It should be noted that in general, the news background is favorable for Bitcoin. For example, the German Federal Office for Financial Supervision (BaFin) has for the first time recognized the main cryptocurrency as a financial instrument. And the largest insurance operator Lloyd's of London, together with the start-up Coincover, presented a new solution for insuring cryptocurrencies in hot wallets. According to them, since the beginning of the year, the digital market has started to "warm up", so we should expect a "new wave" of traders and investors. Miners are also not backing down: the hashrate of the Bitcoin network set a new historical record last week, rising to 136 exahashes per second.
All this affects the forecasts of analysts, among whom optimism reigns as well. 65% of them expect the BTC/USD pair to grow to the $9,500-10,000 zone in the near future, 10% have taken a neutral position, and only 25% expect the pair to fall to the $8,250 horizon.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #usdchf #forex #forex_example #signals #forex #cryptocurrencies #bitcoin

https://nordfx.com/

 

[Stan NordFX]

Forex Forecast and Cryptocurrencies Forecast for March 16 - 20, 2020​

First, a review of last week’s events:

- EUR/USD. That's it! The world economy is no longer run by governments, banks, or corporations. The economy is reigned by only one "person" named Covid-19. The coronavirus pandemic has caused panic on the stock exchanges, a collapse in oil prices, a drop in production, and border closures. Humanity is scared, not knowing what to expect after a week, a month, six months. Schools and universities, restaurants and cafes, parks and stadiums are empty, and people are advised not to go out on the streets at all. Food and toilet paper are disappearing from supermarkets. All sorts of mass events are canceled, and a joke is circulating on social networks that the conference on the fight against the coronavirus was canceled because of...the coronavirus. President Trump's decision to close the US borders and ban the entry of Europeans sent markets into shock. EuroSTOXX50 futures fell 5.57%, while DAX30 futures fell 4.22%. US stock indexes suffered the biggest losses in the past 33 years. The main indexes of Japan, Australia, India, Hong Kong, South Korea, and other countries reached multi-year lows.
Recall that on March 04, the effect of an exploding bomb was produced by the decision taken at the emergency meeting of the US Federal Reserve to lower the key interest rate from 1.75% to 1.25%. Against this background, the EUR/USD pair soared by more than 640 points, coming close to the 1.1500 mark.
Unlike its American counterparts, the ECB left the rate unchanged at its meeting on Thursday, March 12. Bank Governor Christine Lagarde said the Eurozone banking system is stable and does not require a rate cut. (It is already negative and is -0.5%). But the market was much more impressed by Ms Lagarde's words that the ECB should not solve the problem of narrow spreads. Investors remembered the debt crisis triggered by rate hike in 2011, and both European stocks and the European currency immediately flew down, finding a bottom only on the horizon of 1.1055.
If last year the weekly range of fluctuations of the pair was barely approaching 200 points, this year EUR/USD easily overcomes this value in just a few hours. Last week, at the maximum, the dollar won back about 440 points from the euro. Then a correction followed, and the pair ended the five-day period near the 1.1100 level. This result, in our opinion, indicates that the markets are completely confused, as the pair once again returned to the Pivot Point zone, along which it has been moving since May 2019.
As for the forecast given a week ago, 40% of analysts voted that the pair would reach the 1.1450-1.1500 zone then. And it did it on Monday, March 09. The majority of experts (60%) voted for the pair's return to the range of 1.1000-1.1100, where, as mentioned above, it eventually returned. So, both were 100% right. is it a paradox? No, the coronavirus just decided that;

- GBP/USD. There are two main factors weighing on the pound. The first is the confusion in the oil market and the fall in prices for this energy carrier, which is closely correlated with the British currency. The second is the negative dynamics of the debt market. The yield on 10-year government bonds in the UK continues to decline in comparison with similar securities in the US and Germany. But if the bond yield just falls, the pound quotes are carried like an avalanche into the abyss. What else can you call a 900-point drop in just 5 days?
As a result, the pair reached the values of the first decade of October 2019 and ended the trading session where a week ago the bulls could not even imagine in their nightmares: at 1.2280;

- USD/JPY. The dollar has been rising since Monday evening, March 09, against the euro, the pound, and the yen. Investors are also getting rid of gold, with which the pair has an inverse correlation. As a result, having pushed off from the support of 101.17on Monday, on Friday, March 13, the pair was in the same place where it was on Friday, March 06 – at the level of 108.00. There is nothing strange in such a figure in terms of graphical analysis. The only striking thing is the timing and scope of fluctuations: – first 700 points down in 5.5 days, then the same amount up in 4.5 days. What can you do about it, this is now the new reality;

– cryptocurrencies. "Cui prodest?”, - said the ancient Romans, which means: "Look for who benefits." And it was the benefit for all crypto-gurus, crypto-millionaires and other owners of large volumes of cryptocurrencies. After all, it was they who had been convincing investors and traders that bitcoin, and with it the rest of the crypto market, will again soar to unprecedented heights in the near future. "Bitcoin has become a great tool for hedging currency risks and will soon replace the dollar!"- they had been shouting, urging everyone to invest in crypto-coins, thereby making them richer and richer. So what?
Talking about the spells of these "priests", we constantly warned that before investing money, it is necessary to correctly assess the situation, and, perhaps, instead of buy, open a position on sell – as the BTC/USD pair can not only grow rapidly, but also fall even more rapidly. Which is what happened last week.
If you believe the apologists of bitcoin, it was conceived as a lifeline at the time of the stock market collapse, falling exchange rates and the destruction of economic ties. We are seeing all these misfortunes at the moment, but instead of dragging investors up, getting more expensive against the dollar, Bitcoin is sinking them even faster.
In just one month from February 12 to March 13, the main cryptocurrency lost 58% in price, dropping from $10,340 to $4,300. On some exchanges, the drop was even greater – up to $3,815 and reached 63%.
Bitcoin lost up to half of its value in just one day from March 12 to 13, dragging the entire crypto market down with it, including such top altcoins as Ethereum (ETH/USD), litecoin (LTC/USD) and Ripple (XRP/USD). The situation had somewhat stabilized by the evening of Friday, March 13, and the BTC/USD pair rose to the level of $5,600. The Crypto Fear & Greed Index is only 10 points out of 100 possible, which means that the market is not just afraid, but terrified.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. The struggle of governments and regulators for the economies of their countries continues. The ECB did not cut interest rates but announced a 60% increase in the quantitative easing (QE) program, which will amount to €120 billion in 2019. For its part, the US Federal reserve is flooding the market with cheap money, under pressure from President Trump who is eager to be re-elected for the second term. The US has launched a short-term lending program since last week, under which the Fed is ready to lend $1.42 trillion to banks every week. This has never happened in the history of the United States. This week, banks have already received the first tranche at 0.255% per annum. This suggests that, with a high probability, the rate on the dollar will be reduced by at least 0.50% at the Fed meeting next week.
This balance of power is not in favor of the dollar. However, a small margin (55%) is still on the side of bears among the experts, they are supported by 85% of oscillators and trend indicators on H4. The remaining 45% of analysts believe that the dollar will still lose its position, and the pair will again go north. This is agreed by 15% of oscillators on H4, which give signals about the pair being oversold.
Graphical analysis on H4 shows a sharp decline in the pair to the level of 1.0950, and then its growth first to the height of 1.1100, and then 100 points higher.
However, with the ongoing coronavirus panic, super-turbulence in the stock and currency markets, and surging oil prices, any forecasts can turn to dust in a second. And this is proved by the chaos that reigns in the indicator readings on D1, where the green, red and gray colors are mixed.
The main support zones are 1.1065, 1.1000, 1.0850 and the February low 1.0750. The resistance zones – 1.1175, 1.1240, 1.1350 and 1.1500;

- GBP/USD. It is clear that 100% of the trend indicators at the end of the weekly session are looking down. However, the situation is somewhat different among oscillators – 20% of them on the H4 timeframe and 15% on D1 are already in the oversold zone, which indicates an imminent correction or reversal of the trend up. Graphical analysis on D1 supports this development as well. According to its readings, the pair can reach the bottom near the October 2019 low of 1.2200, and then turn around and go north – first to the resistance of 1.2425, and then to the height of 1.2565. At the same time, given the range of fluctuations in recent weeks, it makes sense to designate two more support levels – 1.2065 and 1.1960, and two resistance levels – 1.2725 and 1.2870. Although, perhaps, this is not the limit.
As for the opinions of experts, it was not possible to form one for the upcoming week. But in the forecast for the next 1-2 months, the number of supporters of the pair's growth is a clear majority-75%, the goal is to rise to the level of 1.2900-1.3100;

- USD/JPY. If in the medium-term forecast for GBP/USD, most analysts voted for the growth of the pound and the fall of the dollar, the situation is the opposite with respect to the yen. Here, 60-70% of experts believe that in the next 1-2 months, the Japanese currency will lose its position, the pair will pass through the 108.30-109.75 zone like a knife through butter and reach the 112.00-112.40 level. The next target for the bulls is 200 points higher.
Note that in the coming week, in addition to the US Federal Reserve's decision on the interest rate, we are waiting for similar decisions by the Bank of Japan on Thursday March 19 and the People's Bank of China on Friday March 20. Both of these regulators announced their intention to support commercial banks and companies in their countries. And if fluctuations in yuan rates do not surprise the market, a reduction in the yen rate will be a big surprise for investors.
If, when the dollar rate is lowered, the yen rate remains at the same negative level of -0.1%, it is possible that the scales will tilt in favor of the Japanese currency, and the USD/JPY pair will go down again, breaking through the supports of 105.90, 104.50 and 103.15 one after another. The bears' goal is to return to last week's low and try to test the 101.00 level.
And, of course, it will be necessary to closely monitor the current yield on 10-year US Treasury bonds and oil prices, which largely determine the Japanese yen quotes;

– cryptocurrencies. "What was that?"- many traders and investors ask themselves, looking back at the events of the past week. Was it the beginning of the end? Or a game of big speculators, after which Bitcoin will more than recoup all losses? Or, perhaps, people just did not fully believe in a bright crypto future, and in a critical situation related to the coronavirus, they simply preferred to get rid of virtual wealth, exchanging it for time-tested, quite tangible dollars.
The forecasts of the surveyed experts at the moment look rather timid and modest. According to 65% of them, the BTC/USD pair can reach the $6,000-6,500 zone next week. The remaining 45% can see it around $5,000.
But further on the situation for the bulls looks somewhat worse. Only 20% of experts believe that Bitcoin will be able to confidently gain a foothold above $7,000 by the end of March, and another 20% predict the coin will fall to the $3,000-3,500 zone. The remaining 60% are in no hurry to give any forecasts at all.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #usdchf #forex #forex_example #signals #forex #cryptocurrencies #bitcoin

https://nordfx.com/

 

[Stan NordFX]

Forex Forecast and Cryptocurrencies Forecast for March 23 - 27, 2020​

First, a review of last week’s events:

- EUR/USD. The coronavirus pandemic continues to drive global markets. The oil wars between Saudi Arabia and Russia, which, of course, do not do without the active intervention of the United States, add to the nervousness. This country, whose shale oil is another target of attacks from Russia, may now act as a mediator in the price battle between the Saudis and the Russians.
Covid-19 has dealt a severe blow to the American economy, but the economies of other countries are suffering even greater losses. Since Thursday, March 18, the situation has been somewhat stabilized, the price of Brent oil, as well as the NASDAQ and S&P500 indexes have shown a slight increase. As for the dollar, it has been growing continuously for two weeks in a row, and this period can be called the best for it since the 2008 crisis. Since March 09, the US currency has strengthened against the euro by more than 800 points, while the dollar index has grown by more than 3.3%. The US Federal Reserve, which lowered the interest rate from 1.25% to 0.25% on Monday, has reopened swap lines for Central banks in many countries since Thursday, which, together with the mediation mission in the oil war, should somewhat calm the markets. Although, it is unlikely that anyone will undertake to give any guarantees here.
It is very difficult to analyze the situation now, standard techniques almost do not work, but the majority of experts (55%), supported by 85% of oscillators and trend indicators on H4, gave a correct forecast last week, predicting a further fall in the EUR/USD pair. However, the reality exceeded all expectations: experts named the February low of 1.0750 as the final goal, but the fall was even deeper and the pair reached the local bottom 100 points lower, and ended the five-day period at 1.0695;

- GBP/USD. The British currency has never fallen so low! 230 years ago, in 1791, the pound cost $4.555, in 1900 - $4.864, in 2000 - $1.515, on March 20, 2020 it was worth only $1.141. When we set the target for the pound to fall to 1.1960, we warned that this might not be the limit yet, and we were right. The weekly low was recorded at 1.1409. And if the pound lost about 1,900 points on June 23, 2016, following the results of the Brexit referendum, the GBP/USD pair has fallen by almost 1,800 points over the past two weeks. The latest downward push was facilitated by the news that the Bank of England is reducing the rate from 0.25% to 0.10% and expanding the quantitative easing program by ?200 billion. As for the final chord of last week, it sounded at the level of 1.1635;

- USD/JPY. The forecast for this pair as a whole also turned out to be correct. Here, almost 70% of analysts voted that the Japanese currency would give up its positions, the pair would pass through the 108.30-109.75 zone like a knife through butter and reach the 112.00-112.40 level. Experts named the next 1-2 months as the deadline, but the pair passed the main part of this path in just a week, reaching the height of 111.50 at maximum and ending the trading session on the horizon of 110.70;

– cryptocurrencies. If the movement of EUR/USD in recent weeks repeats the movements on the charts of Brent, NASDAQ or S&P500 almost exactly, the BTC/USD pair seems to live quite an independent life. When the dollar plummeted in the week from February 24 to March 01, Bitcoin fell with it. From 02 to 08 March, the dollar continued to fall, while Bitcoin, in contrast, behaved quite calmly and even showed a small increase. Then, in the period from 09 to 15 March, the currency trend turned 180 degrees, the dollar began to grow no less rapidly, and the price of Bitcoin fell down, which could be explained by the fact that in the conditions of the growing crisis, people are dumping cryptocurrencies, converting them into real currency assets. And here is the week from March 16 to 22: the dollar still continues to grow, and Bitcoin first goes flat, and then even shows a small increase.
What does this mean?
We dismiss the option about BTC as a safe haven asset, which was so actively promoted by all sorts of crypto gurus. In just one month from February 12 to March 13, the main cryptocurrency lost 58% in price, dropping from $10,340 to $4,300. On some exchanges, the drop was even greater – up to $3,815 and reached 63%. Bitcoin lost up to half of its value in just one day from March 12 to 13, dragging the entire crypto market down with it, including such top altcoins as Ethereum (ETH/USD), Litecoin (LTC/USD) and Ripple (XRP/USD). Quite a safe haven!
But the use of the BTC/USD pair as a leading indicator is worth thinking about. Of course, this is still only a theory, but it has certain grounds. The transition of BTC/USD to a flat state in the conditions of continued super-volatility in other markets suggests that major players do not know what to do at the moment – buy or sell their crypto assets, and this may be a warning signal about a possible trend change (or a strong correction) for EUR/USD and other major dollar pairs.
As for the past week, the local low for Bitcoin was fixed at $4,465, and the high at $6,900 per coin. At the end of Friday, March 20, the market capitalization of Bitcoin rose from $91.459 billion to $103.590 billion, and the quotes of the BTC/USD pair are at the level of $6,140.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. In a truly universal crisis, the dollar has shown that it is it, not the euro or the yen, that is the most attractive protective asset for investors. Will it retain this status, and will it continue to grow?
On the one hand, the US Federal reserve has greatly narrowed its room for maneuver by lowering the rate to 0.25%, flooding the market with cheap liquidity and lending $1.42 trillion to banks every week. The growth of unemployment puts pressure on the dollar as well: instead of forecasted 9K, the number of new applications for benefits increased to 70K. California, Texas, New York and Pennsylvania have closed all the secondary businesses, and in the aggregate, these states provide up to 35% of US GDP. Coordinated actions of the G7 countries and Central banks of other countries can also hit the US currency if they simultaneously start to get rid of the dollar mass.
On the other hand, there remains President Donald Trump's stimulus package, which is likely to receive congressional support. And, most importantly, the economic situation in other countries is even worse than in the United States.
If you look at the charts of last Thursday and the first half of Friday, you can decide that the markets have started to calm down, the EUR/USD pair has reached the bottom, and it is time to open long positions on it. But the end of the working week dealt another blow to the bulls: in half a day, the euro gave up all the positions it had won back, returning to weekly lows. And this makes us think that the dollar's quotes have not yet reached their peak, and the pair's downtrend may continue.
Here again, much depends on success in the fight against the coronavirus. So far, 100% of the trend indicators and 85% of the oscillators on H4 and D1 are colored red. The remaining 15% of the oscillators are in the oversold zone.
As for the forecasts of analysts, it was not possible to collect their opinions in any specific forecast for the next week. But when switching to larger time frames, bull supporters get a fairly significant advantage: 60% of experts expect the pair to grow during the month, and 75%¬- during the quarter. The goal is to return to the 1.1000-1.1240 zone, the nearest resistance is in the 1.0800 zone.
The nearest support level, of course, is around 1.0600, and the next one is 100 points lower. The main goal for the bears is the 2016-17 low at the level of 1.0350, after which the path to the parity of the dollar and the euro 1.0000 will be opened;

- GBP/USD. In contrast to the euro, since March 18, the British pound has stabilized in the side channel 1.1450-1.1800 and is moving along the Pivot Point 1.1625. The channel width of 350 points may seem too large to some, but at present, when the daily volatility of the pair exceeds 500-600 points, this is not so much.
The majority of analysts (65%) hope that nothing extraordinary will happen in the coming week, and the pound will stay in the channel indicated above. At the same time, 70% to 80% of them expect that the pound will be able to return to the 1.2725-1.3025 zone during April-May. Resistance zones are 1.1800, 1.1875, 1.2125, 1.2325 and 1.2625. Supports are located in the areas of 1.1425, 1.1300 and 1.1200, but these levels are quite conditional, because, recall, the British pound has never fallen so low in the past 230 years;

- USD/JPY. The movements of this pair depend at the present moment, first of all, not on the yen, but on the dollar. The pair goes where it goes. The main factors that can affect the quotes of the US currency have been described above. In the meantime, the pair has won back all that it lost in the period from February 24 to March 09, and now the score is tied: for two weeks, 1000 points down, then, just for two weeks, 1000 points back. And now 55% of brokers are waiting for the upcoming week to reverse the trend and reduce the pair to at least the 108.50-110.00 zone. When switching to a monthly time frame, the number of bear supporters increases to 65%. The next target zone is 107.00-107.70.
Supporters of the US currency have the opposite goal: first to raise the pair to the level of 112.25 yen per dollar, then 100 points higher. The goal is a 2018 high of 114.55;

– cryptocurrencies. The Bitcoin Crypto Fear & Greed Index is almost exactly where it was a week ago, at the level of 9 points out of 100 possible. On the one hand, this is bad and suggests that investors are in a state of great fear. On the other hand, maybe this is a good thing, since the indicator did not fall to zero, but froze in one place – maybe the "lion" is preparing to jump, and we might soon see an impressive growth of this cryptocurrency?
This is possible because, on the one hand, thanks to the US Federal Reserve's easing program, there is an excess of dollar liquidity in the market, and on the other hand, interest rates on the dollar are now close to zero. And players who hit the jackpot on the growth of the dollar in the last two weeks may well transfer some of the cash to crypto assets.
45% of experts who expect to see the BTC/USD pair in the $7,500 zone agree with this development. The same number of analysts expect the pair to fall to the level of $5,000-5,500. The remaining 10% could not make up their minds about their prognosis, citing the unpredictability of the situation with the Covid-19 coronavirus.

NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #usdchf #forex #forex_example #signals #forex #cryptocurrencies #bitcoin

https://nordfx.com/

 

[Stan NordFX]

Forex Forecast and Cryptocurrency Forecast for March 30 - April 03, 2020
​

First, a review of last week’s events:

- EUR/USD. The pair's flights in recent weeks can be compared to aerobatics: first, an almost vertical takeoff up by 630 points, then a vertical peak by 860, and now a new leap up by 445 points.
Several factors caused the sharp drop in the dollar. The main one is the actions of the US Federal Reserve, which lowered the interest rate to 0.25% and launched a number of programs to support the US economy, injecting billions of dollars and distributing money to its citizens. As a result, the Fed's balance sheet exceeded a record 4.5 trillion dollars, and according to economists' calculations, it may even reach 6 trillion dollars. As a result, US stock indexes flew up, the S&P500 jumped by as much as 20%, pulling the EUR/USD pair with it: investors reacted positively to the steps taken by the US leadership and began to turn away from the dollar as a safe haven asset, preferring more attractive assets at the moment.
The ECB's coronavirus-related decision helped the European currency as well. Previously, the ECB could buy no more than a third of a country's public debt under the quantitative easing (QE) program, but now the Bank has removed this restriction, which has had a positive impact on the yield of Eurobonds and contributed to the growth of the euro.
It should be noted that 60% of experts expected the pair to return to the 1.1000-1.1240 zone within a month, and 75% during the quarter. But, as practice shows, the COVID-19 pandemic serves as a powerful catalyst or driver, repeatedly speeding up market processes. So, it happened this time: the pair reached the set goal not in a quarter, nor even in a month, but in just five days, putting the final point on Friday, March 27 at 1.1140;

- GBP/USD. Macroeconomic indicators such as the business activity index (PMI) indicate a contraction of the UK economy, to protect which the Bank of England has twice lowered the interest rate and increased the volume of bond purchases by ?200 billion over the past two months. However, at the last meeting, the leaders of this regulator unanimously voted against further reducing the rate and keeping it at 0.1%. It was also decided to leave the volume of bond purchases unchanged, at the level of ?645 billion. This indicates that the Bank of England considers the measures taken at this stage sufficient.
The impact of the coronavirus on the UK economy will become more apparent after we learn the results of the first quarter of 2020. So far, the situation here looks little better than in the EU and the US. Support for the pound is now also provided by the ability of the Government of this country to print its own money, without any agreements with the EU.
The bounce of the GBP/USD pair up last week looks even more impressive than the growth of EUR/USD: the British pound took away more than 830 points from the dollar. Recall that on March 20, it fell to the lowest values for the last 230 (!) years, and from 70% to 80% of analysts expected that, having fought off this bottom, the pound will be able to return to the zone of 1.2725-1.3025 during April-May. So far, this forecast is justified: the pair completed the five-day period on the way to the set goal, at the level of 1.2470;

- USD/JPY. The end of March turned out to be favorable for the Japanese currency, whose quotes, as usual, depend on the risk appetite of investors, oil prices and the yield of US government bonds.
The forecast, which was supported by the majority of experts, turned out to be correct by 99.9% if not by 100%. According to it, the pair should have turned south and headed to the 107.00-107.70 zone. This happened in fact: after making several attempts to break through the resistance of 111.60, the bulls gave up, and the bears very quickly lowered the pair by 385 points – to the level of 107.75, near which – at the level of 107.95 – it ended the trading session;

– cryptocurrencies. We suggested in the previous forecast that Bitcoin quotes can be used as a leading indicator for forecasts for major dollar pairs. The main idea was that a lull in the crypto market during financial storms can be a harbinger of a trend change or a strong correction for EUR/USD. According to the voiced theory, the transition of the BTC/USD pair to a flat state in the conditions of continued over-volatility in other markets may indicate that the dollar has reached critical values, and large speculators do not know what to do, whether to increase dollar assets by selling BTC, or, on the contrary, to convert fiat into cryptocurrency.
Of course, this is only a theory, with many reservations, but last week it was confirmed: the charts show a flat in the crypto market and a predicted sharp reversal of the trend for EUR/USD.
Bitcoin has risen in price by less than 9% over the past seven days, Ripple (XRP/USD) – by 10%, Litecoin (LTC/USD) – by 3%, and the growth of Ethereum (ETH/USD) was less than 1%.
By the way, Ethereum co-founder Vitalik Buterin recently presented a roadmap for the development of ETH for the next 5-10 years. In addition, he called for the development of decentralized bridges between Ethereum and other cryptocurrencies and for the creation of a "real" decentralized exchange (DEX) for the exchange of BTC and ETH. However, judging by the Ethereum quotes, his ideas have not yet found a response in the hearts and wallets of investors.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. After winning back 50% of the losses of the previous two weeks, the pair eventually returned to the Pivot Point 1.1100 zone, around which it has been rotating for many months, starting from the end of July 2019. This suggests that the market does not know what else to expect from the coronavirus and from the governments that have entered the fight against it.
On the one hand, we can observe an avalanche-like increase in the number of diseases in the United States, and it is unknown whether President Trump and his administration will have the strength and ability not just to take control, but to seriously improve the situation. A significant part of the money that the Fed is pouring into the country's economy goes to pay unemployment benefits and one-time payments to individuals who... are quarantined and can't spend it. As a result, these funds will not reach the real sector of the economy in the near future. US Treasury Secretary Steven Mnuchin exudes optimism, saying that the current situation is not yet a financial crisis. However, the head of the Federal Reserve, Jerome Powell, already agrees that the US economy "may well be in recession", and the agenda is now dictated by the virus. And it is possible that a severe recession may turn into a depression at some point.
On the other hand, the situation in Europe is no better. The results of the EU summit held on Thursday, March 26, were described by some analysts as "simply terrible". The representatives of the countries did not manage to reach a common opinion, the idea of European "corona bonds" is buried (at least for a while), and the ECB is having a hard time maintaining stability in the euro area. According to a number of experts, such disunity of the EU member states severely limits the opportunities for strengthening the European currency.
At the moment, the graphical analysis points to the north, the vast majority of indicators look in the same direction, and only 15% of the oscillators on H4 and D1 give signals about the EUR/USD pair being overbought.
Among experts, the majority (60%) is also set to continue the growth of the pair, while the remaining 40% voted for the fall. Resistance levels (taking into account current volatility) are 1.1240, 1.1365 and 1.1500, support levels are 1.1000, 1.0850, 1.0775 and 1.0635. Well, two seemingly unattainable goals (although, at present, everything is possible): bullish – 1.1800, bearish – 1.0550.
As for the release of macroeconomic indicators, data on unemployment and the consumer market in Germany and the Eurozone as a whole will be available on Monday, March 30 and Tuesday, March 31. And the second half of the week will bring us a whole avalanche of data on the US labor market. Let's just say that in all cases, the forecasts are disappointing. For example, the number of jobs created outside the us agricultural sector (NFP) is expected to fall from plus 273K to minus 123K;

- GBP/USD. Assessing the prospects for the British economy, chief economist at IHS Markit, Chris Williamson, almost repeated what Jerome Powell said about the American. "The onset of a recession of unprecedented scale in modern history is becoming more likely," – this is the prophecy of Williamson. And even the UK's exit from the EU does not have such a negative impact on the economy as COVID-19.
In this context, despite the medium-term forecast, 60% of analysts expect a downward trend reversal and the beginning of a new phase of the pound's fall in the next week. If we talk about technical analysis, the H4 timeframe is dominated by green, but 20% of the oscillators are already in the overbought zone. The signals of oscillators and trend indicators on D1 can be described as multidirectional.
Graphical analysis on both timeframes supports the bearish forecast but assumes that the pair will stay in the range of 1.2250-1.2600 for some time before going down sharply.
The resistance levels are 1.2600, 1.2750, 1.3025, 1.3200 and 1.3515. Support levels are 1.2250, 1.2200, 1.1800 and 1.1450;

- USD/JPY. The pair ended the last week near the strong support/resistance level of 108.00, and most analysts (60%), as in the case of EUR/USD and GBP/USD, expect a trend reversal and subsequent strengthening of the dollar. If this happens, the pair has quite a lot of chances to still overcome the 111.60-112.00 mark and rise another 100 points higher. The nearest strong resistance is in the area of 109.70-110.00.
The remaining 40% of experts, supported by graphical analysis on H4, side with the bears. Support is in the zones 106.70-107.25 and 104.70-105.00, further targets are 103.00 and the March 09 low in the area of 101.00;

– cryptocurrencies. The Crypto Fear & Greed Index moved just 3 points over the week, from 9 to 12, and still indicates the presence of a strong fear in the market. At the same time, the number of requests for the word "Bitcoin" in the search engines Baidu and Google has grown significantly over the past month, and most users are interested in buying cryptocurrency. So, the number of requests increased by 138% over the past month in the Baidu search engine, and according to Google Trends, the growth was 57%.
As usual, the growth of the reference cryptocurrency is predicted by all sorts of crypto gurus, especially since now they have a powerful ally in the person of the COVID-19 coronavirus. So, the well-known analyst Joseph Young expressed confidence in the positive impact on Bitcoin of the measures taken by the US Federal Reserve to stimulate the American economy. "The Fed endlessly prints money to pump the markets — this is good for Bitcoin. The devaluation of the dollar in the long run is good for Bitcoin. The short-term prospects may be bleak for this cryptocurrency, but the long-term outlook remains very bright, " he said.
Mike Novogratz, the founder of Galaxy Digital, also agrees with Young. He is confident that the global economic crisis triggered by the coronavirus pandemic will be the time of Bitcoin's breakthrough. "Bitcoin will remain volatile for the next few months, but the macroeconomic backdrop is what it was created for. This year should be and will be the year of BTC," the billionaire said.
Philip Salter, Operating Director of Genesis Mining, joins this chorus of voices. He is convinced that the deepening economic crisis will lead to an increase in the popularity of Bitcoin as a tool for hedging the risks of the banking system. "If the development of the economic crisis can be prevented, there will be no major changes to Bitcoin. However, if there is a real collapse, the interest in the first cryptocurrency will take off. The more skepticism about the old economy, the more interest in bitcoin, " the top manager of this popular cloud mining service shared his thoughts.
As for the nearest forecasts, the well-known trader Ton Weiss is sure that with the current Bitcoin quotes, the probability of falling below the recent low of $3800 is 20-25%. The first cryptocurrency will have even less chance of collapsing to such levels if it overcomes the $6800 level - just 15%. "Going above the $6800 level will give me 85% confidence that we will not go below this level," -Weiss States. In general, 55% of experts expect that the BTC/USD pair will reach the $7,500-8,000 zone within the next few weeks. The remaining 45% of analysts, on the contrary, predict a fall in the pair. In their opinion, BTC/USD will once again try to test the support of $5,700 and, if successful, will again be at the level of $5,000.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #usdchf #forex #forex_example #signals #forex #cryptocurrencies #bitcoin

https://nordfx.com/

 

[Stan NordFX]

CryptoNews

- Microsoft has published a patent application for a device called “Cryptocurrency system that uses data on body activity.” Apparently, the device will be designed to use human energy for mining cryptocurrencies. The document says that this will be a set of sensors with a module that converts the energy of the human body. According to some experts, "brain waves in the process of human activity emit a huge amount of energy, and this type of activity can easily be translated into computing power." Microsoft representatives have not yet commented on the new product, however, according to insider information, the device may appear on sale before the beginning of 2021, unless it is an April Fool’s joke.

- Messari analyst Cao Wang believes that Bitcoin's dominance in the cryptocurrency market may exceed 90% by the end of the crisis, instead of the current 66%. According to the expert, "during the period of the entire market drawdown, large investors prefer to work with proven cryptocurrencies. Most often, they choose Bitcoin, since its volatility does not look potentially dangerous. Other coins do not show so good results. We can single out Ethereum among the promising assets, but even it is currently trading in the red zone."
Cao Wang also drew attention to the fact that many investors prefer to invest in the US dollar at the moment. However, if the global crisis becomes even larger, some of them will rush to the cryptocurrency market, where, due to lack of experience, they will buy Bitcoin, considering it the main and most reliable digital currency.

- Option traders believe that Bitcoin will not be able to update the historical high of $20,000 this year. According to the Skew analytical platform, the probability of this event is only 4%. Experts say that the May halving has ceased to be a driver of future growth rate of the asset. In all the options that analysts have studied, an extremely small part of speculators bet on Bitcoin exceeding the $10,000 mark. Most of the traders believe that the cryptocurrency will continue to trade in the range of $5,000-6,000.

- The CEO of the largest cryptocurrency exchange Binance Changpeng Zhao is often criticized for his overly expressive statements that can encourage subscribers to take irresponsible actions. This time, Zhao called for the purchase of Bitcoins, even on credit. "An insane amount of money will soon flow into the financial system. Buy cryptocurrencies with your Visa cards, " Zhao tweeted.
Samson Mow, Chief Strategy Officer at Blockstream, agrees with Changpeng Zhao. In his opinion, the decision of the US Federal Reserve to print $6.2 trillion to maintain liquidity in connection with the economic crisis makes an excellent advertisement for Bitcoin, which was created just to counterbalance the rampant monetary printing press. "How much did we pay Trump to advertise Bitcoin?"- joked the top manager.
But another well-known analyst and trader, Peter Brandt, believes that Bitcoin may have "big problems" if it can't demonstrate steady growth against the backdrop of the fall of the traditional financial market.

- According to the analytical service Glassnode, the number of wallets containing at least one BTC coin has grown by 60% in three years and reached a record high of 800 thousand. The previous record was set at the end of 2017, when the exchange rate of the main digital coin set a historical high at $20,000. At that time, the number of such wallets was about 720 thousand. Since then, the number of addresses with a balance of at least one coin has been growing all the time, with the exception of the end of 2018, when the Bitcoin exchange rate collapsed to $3,200, their number fell to 690 thousand.
Cryptocurrency exchanges Kraken, OKEx, Bitfinex, Paxful and Luno also reported an increase in the number of new users against the background of the coronavirus. According to Kraken, the number of registrations on their platform has increased by 83%. "This influx of new users to the exchange is not due to the fact that people have nothing to do in quarantine during the pandemic. Most likely, people want to use the crisis and gain independence from the "outdated" financial system," says Pierre Rochard, a specialist in strategic development at Kraken.

- Hackers have recently repeatedly broken into popular accounts on YouTube and have used them to arrange fake distributions of cryptocurrencies on behalf of famous people. This time, the scammers hacked more than thirty different YouTube channels, renamed them to allegedly various Microsoft brands, and broadcast through them a speech by Bill Gates in June 2019. At the same time, along with the "live broadcast", the scammers showed ads for a "prize draw", in which users were asked to send a certain amount in cryptocurrencies, which they allegedly would double in response.

- The Kraken exchange believes that the price of Bitcoin may reach $350,000 by 2044. This will be facilitated by the transition of a $68 trillion inheritance of capital from the "baby boomers" to the younger generations. Kraken experts gave a quantitative assessment of the potential flow of inherited capital into Bitcoin. According to their base scenario, with a tax of 2% and a peak of placing funds in the cryptocurrency at 5% of inherited assets, the inflow of investment in Bitcoin will be $971 billion. Based on the difference between the current issue of BTC and the expected figure for 2044, the price of the main cryptocurrency can reach $349,255. Even according to the most conservative estimate of exchange specialists, it will be around $70,000.


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[Stan NordFX]

CORONAVIRUS: NOT TIME TO GET SICK, TIME TO PROFIT

Because of the COVID-19 coronavirus pandemic, the crypto market, Forex, and exchanges are all going down. "This is a great time to make a profit! Go to quarantine, stay at home and ... earn!"- experts of the brokerage company NordFX advise


The COVID-19 coronavirus pandemic continues to control the global markets. Countries are being quarantined, factories and offices are empty, and authorities are urging their citizens not to leave their homes. Of course, it is a forced measure, and there is nothing good about it. But there is still one advantage there: now we have much more time not only for active trading, but also for training and improving our own trading strategies.

Until recently, many crypto gurus convinced us to invest in Bitcoin, which, they said, was to protect us in the event of a crisis in the traditional markets. However, the onset of the coronavirus proved the complete failure of this theory: it turned out that instead of growing, the main cryptocurrency can fall very quickly along with currencies, oil and stock indexes.
In just one month from February 12 to March 13, it lost 58% in price, dropping from $10,340 to $4,300. On some exchanges, the drop was even greater: up to $3,815, and reached 63%. Bitcoin lost up to half of its value only in one day from March 12 to 13, dragging the entire crypto market to the bottom. Quite a safe haven!

And if passive investors who invested money in Bitcoin in the hope that its price, as a result of the halving or just for no reason, will soar to the cosmic heavens, experience only disappointment, active traders, on the contrary, have received another opportunity to make a large profit.

Recall that international brokers such as NordFX, unlike crypto exchanges, provide traders with significantly more opportunities to increase their capital.

First, NordFX clients have the opportunity to earn both on the growth and the fall of cryptocurrencies, which is very important in the conditions of such a high market volatility. At the same time, in order to make money on the fall of the Bitcoin, you do not need to have it at all: trading is similar to the CFD contracts for difference. You just open a sell trade in the trading terminal, and if the coin quotes go down, you will get a profit.

Secondly, this profit can be very high, because the broker provides its clients with the opportunity of margin trading. So, you just need the following to open trades on cryptocurrency pairs in NordFX:
- $150 to open a position of 1 Bitcoin
- $15 to open a position of 1 Ethereum
- $0.3 to open a position of 1 EOS
- $0.02 to open a position of 1 Ripple.

That is, to buy or sell 1 Bitcoin at the current price, you do not need to have $6000, but only $150 is enough, which allows you to make a profit 40 times greater than in normal trading without margin. So, in just one month from February 12 to March 13, you could have made a profit of 4000% on the fall of BTC.

In total, NordFX clients have the opportunity to make transactions with 11 cryptocurrency pairs. The order execution speed is less than 0.5 seconds. Deposits are in US dollars, Bitcoins or Ethereum at the customer's choice, and the minimum deposit is only $10.

And third, another important point is the ability to hedge transactions on cryptocurrencies, opening parallel positions on the Forex market (33 currency pairs), or trading gold, silver, oil, shares of leading global companies or major stock indices such as Nasdaq, Dow Jones, Nikkei, etc. And here, just as in the case of cryptocurrencies, you can earn not only on the growth of the price of these assets, but also on its fall. At the same time, the broker will immediately, automatically and without any collateral provide you with a leverage of up to 1:1000 for currency pairs. That is, if you have, for example, only $100, you can make transactions worth $100,000.

Summing up the above, we can say that the onset of the coronavirus is not a time to indulge in boredom, discouragement, and even more so, panic. This is a time to earn money, and self-isolation can bring real benefits to your health and finances. Quarantines begin and end, life goes on!

Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.


#eurusd #gbpusd #usdjpy #usdchf #forex #forex_example #signals #forex #cryptocurrencies #bitcoin

https://nordfx.com/

 

[Stan NordFX]

Forex and Cryptocurrency Forecast for April 06 - 10, 2020​

First, a review of last week’s events:

- EUR/USD. The German unemployment rate remained unchanged at 5% in March. But the data on the US labor market looks just terrifying: 6.648 million applications for unemployment benefits, this figure has increased by 10 million in two weeks, which is equivalent to 6% of the entire labor force. The number of new jobs created outside the agricultural sector went down: -705K in March instead of +275K in February. Other indicators are no better. It is possible that the unemployment will jump higher than during the great depression. And at the same time, the dollar has been growing all week, taking away more than 350 points from the euro, which indicates that the market was already ready for such a collapse of the US economy and took this into account in its quotes in advance. The dollar was also helped by statements from President Trump and the Saudi Energy Ministry about a possible return to the negotiations in the OPEC+ format and an end to the oil war. Although, there is as little clarity on this front as on the front of the fight against the COVID-19 coronavirus.
At the end of the week, having made a five-day walk to the south this time, the EUR/USD pair reached a strong support/resistance zone around 1.0800, where it set the final chord;

- GBP/USD. The most accurate forecast for this pair was given by graphical analysis, which predicted the sideways movement of the pair, which looks truly amazing. The pair stayed in the range of 1.2245-1.2485 for the whole week, and the scope of its fluctuations did not exceed 240 points, which, according to the current violent times, can be considered a flat. Some analysts believe that the reason for this is the increased interest of investors in the sharply cheaper pound in the first two decades of March, which leveled the current problems in the British economy;

- USD/JPY. A similar pattern to the GBP/USD is also visible on the chart of this pair, which also stayed in a 180-point wide side channel all week (106.90-108.70). And this is despite the fact that the dollar index for the week rose by 2.5%. One of the versions that explains this behavior of both pairs is that investors and speculators were so caught up in the struggle between the two "titans", the dollar and the Euro, that they postponed a serious game on the pound and the yen for the future, when it is clear what is happening with the two leading economies of the world and what the next actions of their regulators are;

– cryptocurrencies. Recall that when analyzing the situation on the crypto market, we use a seven-day interval from previous Saturday to current Friday. The volatility of BTC/USD during this period was about 23%: having fallen on Monday, March 30 to the level of $5,870, the pair turned around and reached its peak of $7,260 on Thursday, April 02, followed by a rebound down, and the quotes were again below the level of $7,000. If you look at the chart, you can clearly see that for three weeks now, the bulls have been persistently trying to break through this resistance and gain a foothold above $7,000, but to no success so far. Due to the crisis caused by the coronavirus, investors are quite cautious, not risking transferring large amounts of fiat into cryptocurrencies. During the week, the market capitalization of the crypto market has not changed and is at the level of $256 billion. The Crypto Fear & Greed Index does not leave the red zone: it was at 9 two weeks ago, seven days later its value was 12, and now it is 14 out of 100 possible, which still indicates the presence of a strong fear in the market.
As for such top altcoins as Ripple (XRP/USD), Litecoin (LTC/USD) and Ethereum (ETH/USD), they, following the main cryptocurrency, also formed figures called "ascending triangle", trying to rise and gain a foothold above their own resistance zones: Ripple – above $0.18, Litecoin – $41, and Ethereum – $145.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. The regulators, both the Fed and the ECB, are now trying to put out the fire by flooding their markets with cheap money. But the fire of the corona crisis was so strong that it could not be controlled quickly. The data on the US economy for March leaves one speechless. But this is not all, the data for April, which we will see in a month, may look much more dramatic. In addition, the Federal Reserve's balance sheet is growing day by day, and its policy of easing reduces the attractiveness of the dollar as a safe haven currency. These arguments allow analysts at Nordea Markets to say that the EUR/USD pair is more likely to return to 1.1500 rather than to fall to 1.0000.
On the other hand, even in the Eurozone, despite the current account surplus, things are not running smoothly. Germany and other Northern European countries that are members of the EU have recently rejected the offer of Italy, France, Spain and six other Euro zone countries to issue joint bonds – coronabonds. Whether they can overcome their differences will become clear in the very near future, on Tuesday, April 07, a meeting of the Eurogroup consisting of EU Finance Ministers is due to take place, and on Wednesday, April 08, the ECB meeting on monetary policy will be held. Also, the results of the OPEC meeting on Monday April 06 and the results of the Fed meeting on April 08 may affect the formation of trends.
Meanwhile, 65% of experts, supported by graphical analysis on H4, 75% of oscillators and 90% of trend indicators, expect the downtrend to continue and the pair will decline to the lows of March 20-23 in the 1.0650 zone. The next support is at the level of 1.0500, the goal is the low of 1.0340 on January 01, 2017.
It should be noted that when switching from a weekly to a medium-term forecast, the situation changes radically, and here 65% of analysts expect that the pair will turn around at the end of April – in May, first it will return to the height of 1.1100, then 1.1240, and eventually rise to the level of 1.1500. At the same time, 45% of experts do not exclude that this may happen in the nearest future;

- GBP/USD. After such a difficult decision to leave the EU, the British regulators are doing everything possible to stabilize the economic situation. Against this background, 20% of analysts, in agreement with the graphical analysis on D1, expect the pair's sideways trend to continue in the range of 1.2245-1.2485. 50% of experts expect the channel to break down and reduce the pair to the 1.1640-1.1940 zone. The remaining 30%, on the contrary, side with the bulls, indicating the resistance levels of 1.2475, 1.2625 and 1.2840. As for the indicators, while most of the trend indicators are colored red, there is a complete discord among the oscillators: 25% on D1 signal that the pair is overbought, and the same amount on H4 show that it is oversold;

- USD/JPY. 60% of analysts expect from this pair a breakout of the 108.70 resistance and a strengthening of the dollar to the level of 111.65. Further growth of the pair remains in question, as several attempts between March 20 and 25 were unsuccessful.
Bear supporters among experts are now a minority - 40%, the nearest goal is to return to the lower border of the corridor 106.90-108.70. If it is broken through, the pair will first rush to the support of 105.00, then to 103.15, and then to the low of March 09 at the level of 101.15. It is difficult to say how long the pair will be able to cover this distance but considering the recent flights of 700 points a week, it can happen quite quickly.
As for the indicators, the discord is similar to the GBP/USD. On H4, 70% of trend indicators and 75% of oscillators are colored green, while the rest are red. On D1, the picture is diametrically opposite. A compromise situation is offered by graphical analysis on H4: first growth to the zone of 111.00, then a sharp drop first to the support of 108.00, and then another 100 points lower;

– cryptocurrencies. Messari analyst Cao Wang believes that the dominance of Bitcoin in the cryptocurrency market by the end of the crisis may exceed 90%, instead of the current 66%, as large investors prefer to work with the most reliable and proven coins during the market drawdown. At the same time, according to the Skew analytical platform, based on a survey of option trading participants, the BTC/USD pair will not be able to update the historical maximum of $20,000 this year, the probability of this event is only 4%. An extremely small part of option speculators bets even on a growth above the $10,000 mark.
However, investors are still pinning their hopes on the printing press launched by the Central banks of the leading countries due to the crisis. "An insane amount of money will soon be poured into the financial system," Changpeng Zhao, CEO of Binance crypto exchange, tweeted. Samson Mow, Chief Strategy Officer at Blockstream, agrees with him. In his opinion, the decision of the US Federal Reserve to print $6.2 trillion makes an excellent advertisement for Bitcoin, which was created just just to counterbalance the rampant monetary printing press. It is logical that, with the surplus of the fiat subject to depreciation, investors will again turn to the cryptocurrency market, and the BTC quotes will go up sharply.
The data from the analytical service Glassnode also look optimistic, according to which the number of wallets containing at least one BTC coin has reached a record high of 800 thousand. Cryptocurrency exchanges Kraken, OKEx, Bitfinex, Paxful and Luno have also reported an increase in the number of new users against the background of the coronavirus. For example, according to Kraken, the number of registrations on their platform has increased by 83%.
As for the pessimists, we can refer to the well-known analyst and trader Peter Brandt, who believes that Bitcoin may have "big problems" if it can not demonstrate steady growth against the background of the fall of the traditional financial market.
And in conclusion, another very long-term forecast, which will undoubtedly please even those who once purchased Bitcoin for $20,000 and since then have been watching its quotes with sadness. According to Kraken experts, the price of Bitcoin can reach $350,000 by 2044, which should be facilitated by the transition in the form of a $68 trillion inheritance from "baby boomers" to younger, "digital" generations. So, it's not a total loss, ladies and gentlemen!


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #usdchf #forex #forex_example #signals #forex #cryptocurrencies #bitcoin

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[Stan NordFX]

CryptoNews

- The Weiss Ratings rating agency experts believe that completely anonymous cryptocurrencies will help to resist measures to track citizens. Authorities in many countries are now trying to monitor every person to counter the spread of coronavirus or attempts to make money from the epidemic in an illegal way. "But there should be a limit to everything, "the Agency believes, "personal space should not threatened. The same applies to financial transactions that will not affect the coronavirus or the pandemic in any way. If anonymous cryptocurrencies can replace fiat by at least 10 percent, surveillance will not be effective, which is why government bodies will begin to abandon it."

- According to the head of UnionBank, Edwin Bautista, the transition of the banking sector to cryptocurrency against the background of the coronavirus pandemic looks very realistic. If the situation on the currency market does not stabilize, this measure will be the only one that will save the situation and save the economy. "Now almost all products are paid for online. We may see a period of complete rejection of fiat money in cash. If banks support the initiative of small regulators who already cooperate with cryptocurrency companies, the industry will reach a new level," Bautista believes.

- The management company VanEck Global experts conclude that against the background of the crisis caused by the COVID-19 pandemic, bitcoin is increasingly correlated with gold. In the short term, this strengthens the cryptocurrency's status as a safe haven asset. "Bitcoin's correlation with gold has reached a level never seen before," VanEck Global said in a report. However, in the long term, this indicator remains quite low. Experts also stress that the correlation of the main cryptocurrency with the value of the US bonds, which traditionally serve as a safe haven for investors during stock market selloffs, has also increased.

- P2p platform Paxful has launched Bitcoin trading for physical gold. Paxful consider their offer unique: no other P2P market gives such an opportunity to use gold as a payment for cryptocurrencies. "In a sense, it is symbolic to trade gold in a pair with its virtual embodiment, Bitcoin," commented CEO of the platform Ray Youssef.

- The analytical company Coinmetrics believes that the current market offer of Bitcoin at 18.3 million coins does not reflect the real liquidity. According to their data, since 2.3 million BTC have been left without movement for more than five years, they are either permanently lost or concentrated in the hands of long-term investors. A similar situation has developed with Bitcoin Cash. After the hard fork in 2017, 6 million BCH were lost sight of, which reduces the real market supply to 12.4 million coins.

- To prevent the spread of the COVID-19 epidemic, the US largest Bitcoin ATM operator, Bitcoin Depot, has started disabling some of its ATMs. This applies primarily to devices installed in the most crowded places and should help to distance people in the face of the epidemic. "We are monitoring the situation, and the number of ATMs temporarily disconnected from the network is likely to increase," a company representative said. In total, the Bitcoin Depot network has more than 600 bitcoin ATMs in 25 States.

- The Spanish tax Agency (AEAT) notes that the number of taxpayers carrying out transactions with Bitcoin and other cryptocurrencies has increased four times over the year. For the first time, Spanish crypto investors and traders received notifications from the tax service in 2019, and there were 14,700 people at that time. This year, AEAT will send out similar reminders to 66 thousand taxpayers. At the same time, the Agency stressed that the mailing schedule will not be disrupted, despite the raging COVID-19 epidemic in the country.

- Mike Stay, who holds a doctorate in computer science and cryptography, published an article about hacking an encrypted zip file. The latter was very valuable, because it stored the keys to Bitcoin wallets with coins worth $300 thousand at the current exchange rate. He was asked to do this by a client who bought cryptocurrency back in 2016 but forgot the password to the archive with keys. This is one of the rare cases when people manage to "find" their long-forgotten Bitcoins. Passwords are usually irrevocably forgotten, flash drives with keys are accidentally thrown out, and it is only these combinations of characters that connect the crypto investor with their assets.

- Experts are monitoring how North Korea continues to import and export goods despite the fact that numerous sanctions are applied against it. Chainalysis representative Jesse Spiro said in a conversation with CoinDesk that, according to their assumptions, this country uses illegally obtained cryptocurrencies worth $1.5 billion in retail networks and launders stolen money in this way. "The problem of countries that are subject to sanctions is that they need to move money across borders to conduct illegal trade. When it comes to North Korea, there is no doubt that cryptocurrencies are involved."

- The story of buying two pizzas for 10 thousand Bitcoins is not a fiction at all, but a real story that will celebrate its 10th anniversary on May 22, 2020. Its participants are programmer Laszlo Hanich and Papa John’s pizza delivery man Jeremy Sturdivant. Recall that Bitcoin was less than two years old at that time, the price of each coin was only a fraction of a cent, and there was no experience of payments in cryptocurrency at all. And in that situation, a programmer from Florida, Laszlo Hanich, wrote a request on the Bitcointalk forum that read: "I will pay 10,000 bitcoins for a couple of pizzas, say, for a couple of large ones – so that there is some left for the next day as well." The offer was received by Hanich only on the 4th day, and the transaction took place on Internet Relay Chat (IRC). Jeremy Sturdivant agreed to the payment method, delivering two large Papa John’s pizzas to Hanich, costing $25. Today, 10,000 BTC is worth almost $71 million. It is believed that this was the first ever transaction to buy a real product for Bitcoins. 10, 000 BTC are worth more than $ 71 million now and you can buy 5.6 million pizzas with them!


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