The financial world is rattled, as the ongoing US-China trade war escalated further. After China introduced new tariffs on US goods, President Trump reacted by raising tariffs on his side and went as far as saying US companies should leave China. Mainstream market volatility sometimes correlates with bullish runs in the crypto market, and over the past 24 hours, that seems to be the case.
Today’s Highlights
- Bitcoin Futures
- Rakuten Launches Wallet
- US-China Trade War
Back to the Futures
The subject of crypto derivatives traded in the mainstream market has always been an attention grabber. Last Monday, we got another example of this, when markets rallied to start the week following an announcement that Bakkt, a subsidiary of the Intercontinental Exchange, was granted approval to launch Bitcoin futures next month from the US Commodity Futures Trading Commission (CFTC). However, the celebration was short-lived, as on Wednesday Bitcoin later fell below the psychologically important $10,000 mark.
Big in Japan
A little later in the week, big crypto news came out of Japan, as eCommerce giant Rakuten announced the launch of Rakuten Wallet, which supports Bitcoin, Ethereum and Bitcoin Cash. While the selection of coins is limited compared to other wallets, the fact that such a reputable brand has entered the crypto space gives the market another seal of approval from a mainstream firm, and could help attract new players into the realm of crypto.
Hash Rate Climbing
Another milestone was reached over the past week, as Bitcoin’s hash rate hit a new all-time high, climbing above the 80 EH/s (quintillion hashes per second). This means that the Bitcoin network’s computing power is now stronger than it has ever been, which some analysts believe indicates that the network is more secured.
The Week Ahead
There’s no doubt that the ongoing turmoil in global markets, fueled by the US-China trade war, will be the key focus over the next few days (and perhaps weeks). As two of the world’s most powerful economies continue to exchange blows, crypto might once-again emerge as the victor. Despite crypto’s volatile nature, some investors tend to pour more money into it when mainstream markets are on the decline. However, Bitcoin and other major tokens were highly volatile over the weekend but eventually shifted into the green over the past 24 hours. There’s obviously no way of knowing if this trend will continue, but if Beijing and Washington continue to exchange blows, the crypto market alternative may become more alluring to some investors.
eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.