Another big day for the cryptocurrency market as major coins extended their gains from the beginning of the week. While there is an obvious technical reason behind the surge as I covered on Monday and on Tuesday, the fundamentals have also played a big role. Here’s an overview of the biggest positive news coverage for this week.
1- First and foremost, the world’s first bank-owned cryptocurrency exchange opened in Japan. Japanese financial giant SBI Holdings Inc formally launched its cryptocurrency exchange platform, on Tuesday, calling it VCTRADE. The launch came nearly two years after its initial announcement and after months of delays this year. So the fans obviously got a kick out of that.
2- The other big news was from the US tech giant, IBM, who has teamed up with financial technology start-up Stronghold on a cryptocurrency that’s pegged to the US dollar. IBM is exploring whether a cryptocurrency pegged to the US dollar may be a better option for making payments than other digital currencies, which tend to be volatile. While this news could be bitter-sweet for crypto-fans, to people who are on the fence about the whole cryptocurrency industry, this could mean that the industry is here to stay, one way or another.
3- The third piece of positive news came from Goldman Sachs (NYSE:GS) and its new CEO, David Solomon. His new position announcement created a buzz in the crypto market because he is known to be keen in Bitcoin and other digital coins.
So there you have it. The bullish market could continue until the end of this week, but remember that what goes up, must come down. Personally, I believe we could still see another round of pullback before the real uptrend restarts in the markets.
As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don't forget to complete your risk management due-diligence before developing your investment strategy.
*This article was published here.