The week started out with a bearish downturn in crypto markets, as the majority of cryptos were in the red this morning. Over the past week, several key stories impacted markets, including one that’s straight out of a spy movie. What will the week ahead bring? Well, it seems that the connection between crypto and mainstream markets will once again be tested, alongside other events that could influence the crypto realm.
Today’s Highlights
- EOS above all
- Bakkt to the Futures
- The North Korean Connection
EOS to the Rescue?
While the overwhelming majority of cryptocurrencies, including 9 of the top (by market cap), were in the red this morning, EOS persisted and registered gains, up around 1.8% at the time of writing.
It is not exactly clear why EOS went against the grain, but it could provide a glimmer of a bullish hope in an otherwise bearish market. EOS is also the leader in weekly gains, rising around 12% since last Monday.
Bakkt to the Futures
Last Friday, Bakkt, a digital currency exchange owned by ICE, the same parent company as the NYSE, started allowing clients to deposit crypto into an account that will offer Bitcoin futures. While Bakkt is not the first exchange to offer such contracts, it is the first to operate entirely with crypto, meaning the contracts are settled in Bitcoin, rather than fiat currency. The futures themselves are scheduled to launch on September 23rd, and the mainstream seal of approval they offer might give the market a boost.
Crypto Cold War
In a scenario that sounds straight out of the next James Bond movie, the UN reported last week that North Korea could be behind several hacks into banks and crypto exchanges, amounting to $2 billion in stolen fiat and crypto. While North Korea denied the allegations, the report suggests that the scheme spanned 17 countries and that the funds were used to finance the country’s military operations. The official response from North Korea was that the news is a “fabrication by the hostile forces [and is] nothing but a sort of nasty game aimed at tarnishing the image of our Republic and finding justification for sanctions.”
The Week Ahead
With so many factors causing turmoil in mainstream markets, there could possibly be an effect on crypto. The SPX500 index is only 2% away from a new all-time high, and if reached, it could rekindle a bullish trend on Wall Street, that might, in turn, cause some investors who considered cryptocurrencies as an alternative investment to shy away from them. On Thursday, the European Central Bank will announce its latest interest rate decision, no-doubt impacting the Euro – a currency that is also used to buy crypto by European investors – so that might also be a factor to consider this week.
eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.