The markets are mulling over the consequences of the emerging markets fall out. The record surge of the key interest rate in Argentina to 60% makes everybody scared that the contagion will spread all over the world, and a new global crisis is looming. Besides, the ominous anniversary of Lehman Brothers’ crash in September only fuels the panic.
However, what’s interesting, ten years ago it was Gold and other safe heavens that benefited the most from the economic slump, this time we see impressive interest to crypto currencies. The presence of these digital currencies is felt in Turkey, Venezuela, and Argentina. And of the crisis spreads all over the world, we have all the chances to see another splash of crypto hype.
BTC/USD
Bitcoin has added around 5% during the recent week and is showing a gradual appreciation confirming its positions above $7,000. The pair bottomed one month ago around 5,880, and since that time never showed any significant sell-offs.
The trend of Bitcoin market share increase is still here, and it might continue during the nearest months due to one important factor – there is an apparent correlation between this crypto currency and emerging markets.
And once the banking system gets too involved into the crisis we will see the mass cashout through crypto asset channels where you have no banking restrictions. Thus, there are high chances to see Bitcoin aiming at $25,000 again.
ETH/USD
Ethereum was one of few major crypto currencies that has suffered losses during the recent week. It lost around 2% while most crypto currencies showed a 15% rise on average.
The crypto currency has been under pressure due to rumors of a rising bearish positioning with the nearing launch of futures on CBOE. Investors remember the impressive slide in bitcoin after futures were launched by CME and CBOE at the end of last year. This could be the case for Ethereum as well.
Besides, the downtrend in ICOs putting additional pressure on the digital asset. Ethereum was one of the most popular crypto currencies to be involved into the coins offering. And now we see the process of cash out leading to ETH sell-off. The digital asset may stay under pressure till the moment of CBOE futures launch.
MONERO
Monero has become one of the leaders of crypto market during the recent week. It has appreciated by more than 30%.
The series of positive reports on the potential of the crypto currency fueled the rally of the asset. Bloomberg recently published a report by Sherwin Dowlat of Satis Group that stated that Monero would likely be the most valuable token in the future due to its utility for storage of value, economic and implied velocities. The key advantage of the asset lies in its privacy that will attract entities seeking anonymous transactions.
Earlier, the market discussed the same issue that was risen by the Economist. Given the positive speculations environment, Monero may continue the rise in the nearest weeks. The next strong level of resistance lies around $150 area.