Cryptocurrency Market Outlook by IronFX!
This article is originally referred from IronFX News.
According to FOX Business, crypto startup SolidX is currently the number one prospect for receiving approval from the U.S. Securities and Exchange Commission (SEC) to launch the first bitcoin exchange-traded fund (ETF).
SolidX is insured and physically-backed by bitcoin and has an entry price of 25 Bitcoins.
In the past we have seen the Winklevoss brothers, founders of crypto exchange Gemini, attempting to issue the first-ever bitcoin ETF, unsuccessfully however.
Yet, Gabor Gurbacs, director of digital asset strategies at VanEck which is behind SolidX, insists they are very close to receiving clearance and that a crypto ETF is what the US has been waiting for.
In our opinion market participants and investors remain indecisive at the moment.
Crypto currencies have not shown price stability with Bitcoin for example losing 70% since its peak in December 2017, but also have not shown reliability with so much cyber theft taking place in the market.
Here, we can make a reference to market wizard and legendary investor Warren Buffett who has not been in favor of utilizing digital coins for investment.
Indeed, many people are interested in crypto and the digital coins could have a bright future ahead of them, even though at the moment they driven by speculation.
Even if there is real interest in the market for Crypto backed ETFs we maintain the opinion that investor interests have to be considered first, as the majority of people are not aware of what the real risk consists of.
The majority of people do not understand the research it takes to be able to make an investment decision and after that the patience it takes in order for the plan work.
Ignorant investors as we may call them, tend to follow bubble trends as soon as they surface and are most probable to end up losing their money due to unclear motives.
A fact that sparks more interest, is that Bitcoin founder very famous Satoshi Nakamoto remains unidentified despite the fact that his creation has enacted huge investments, popularity, gains and losses along with the creation of other digital coins within the financial world.
Moreover, there must be a very good reason for that person or group of people to choose to remain unidentified after 10 years.
From a more positive perspective, large investments are still coming in the Crypto market.
According to Reuters, Bitstamp has been acquired by NXMH, a Belgium-based investment firm, in an all cash deal.
Bitstamp is huge in the European Union by means of volume, with turnover of $100 million per day and was valued at $60 million, up from a 2014 estimation of $39 million.
Furthermore, positive developments have also been seen in the Asian continent and specifically in Hong Kong.
Authorities in the Asian financial center align themselves with other regulators trying to find ways to control cryptocurrencies and their activities.
From now on, local firms will need a license to allocate funds that are invested in virtual assets such as cryptocurrencies.
Bitcoin was overtaken by a sharp downward drop on the 29th of October as the trading week opened and followed up in a sideways manner during the following days.
Yesterday at some point during the European afternoon the digital asset moved even lower.
However very shortly it corrected on the upside and moved even higher than the sideways price range it was moving within the last days.
If the Cryptocurrency is purchased it could move higher towards the 6480.80 (R1) resistance level and even breach it heading for the 6666.67 (R2) resistance area.
In a dynamic buying environment bitcoin could even reach the 6889.33 (R3) resistance line.
The key levels for a selling situation could be the 6210.44 (S1) support level and breaching it could mean moving lower for the 6058.37 (S2) support barrier.
In an intensive selling environment the crypto currency could drop even lower to the 5864.05 (S3) support level.
Original Source: IronFX News