Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Fed Day; Crypto Funk

By Mati GreenspanMarket OverviewJul 05, 2017 06:30AM ET;s-just-the-way-it-is-200199159
Fed Day; Crypto Funk
By Mati Greenspan   |  Jul 05, 2017 06:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

As if South Korea doesn't have enough problems at the moment, Korea's most popular exchange site bithumb, which is the number one crypto exchange by volume in the last 24 hours, and responsible for an estimated 10% of global cryptocurrency trading volumes, was hacked.

This hack attack does seem limited in scope. Overall, only about 3% of users reported having issues and though some headlines are saying that more than 100 Billion Korean Wons were stolen, that amount in US dollars comes out to only about $1 Million.

Still, this type of event serves to illustrate a sore issue for alternative investors that many of these online exchange sites are simply not secure. In this case, it was enough that the home computer of a bithumb employee was breached to compromise the personal details of clients funds.

Exchange sites can be very useful to obtain cryptocurrencies but please don't keep your money in an unregulated marketplace. If you really want to hold the physical keys the best way to do this is by using a digital wallet.

Today's Highlights

Caution to the Wind

Fed Day

Crypto Funk

Please note: All data, figures & graphs below are valid as of July 5th. All trading carries risk. Only risk capital you're prepared to lose.

Market Overview

With all the talk about North Korea in the media over the last few days, it's very strange that the markets remain complacent.

Usually, if there is a factor of risk, tensions between the USA, Russia, and China, or the like, we should see some type of flight to safe assets.

Well, Kim Jong Un has just demonstrated that he has the capability to send a missile as far as Alaska, and may have the ability to nuke Tokyo very shortly. Yet, the markets remain eerily calm.

Sure, the 4th of July could be partially responsible for muted volumes and activity but assets like Gold have had very little downtime and currencies like the Yen, and the US Dollar have been open throughout the holiday.

There was a light sell off at the end of the European session yesterday but stocks in Asia this morning seem oddly resilient. Here's the CHINA 50 index. Notice the last candle on the left showing today's performance and notable recovery as Asian investors throw caution to the wind.

China 50 Chart
China 50 Chart

Fed Day

This evening, or around lunchtime on Wall Street, the US Federal Reserve Bank will release the minutes from their meeting three weeks ago.

The Fed, along with other central banks around the world, have been trying very hard lately to emphasize that the 2008 financial crisis is finally behind us and would love to get back to business as usual.

During their last meeting, they did manage to raise the interest rates by 0.25% to 1.25%, despite the economy not performing according to their expectations. They'll have another meeting this month on the 26th and markets are currently predicting a 0% chance that they'll raise the rates again.

For short term traders, an unexpected move by the fed could mean great gains, but for long term investors, it's more important to keep in mind the projections of where we'll be in a year or more. So let's take a look...

Here, we can see the implied market probability of the Fed rate will be unchanged at 1.25%, raised to 1.5%, or raised to 1.75%, by August of 2018...

Current Implied Probilities
Current Implied Probilities

So, the most likely outcome is that we'll be exactly where we are now, with a fair possibility of rates going up ever so slightly.

This could explain why the US Dollar has been underperforming over the last few weeks. The Fed is obviously talking tough and encouraging their counterparts to do the same, but markets are betting that they won't be making any further advances on this front any time soon.

Crypto Market

At this point, the lack of excitement in the traditional markets seems to be mirrored in the digital world.

The overall market cap of all cryptocurrencies has remained steady at around $100 Billion for an entire month.

Total Market Capitalization
Total Market Capitalization

Though awareness has been gaining steadily and there have been many positive updates about new regulation and legalization of cryptos in various regions, for the time being, things are pretty stagnant.

Taking things into perspective, it's really difficult to complain. Many of these coins have risen thousands of percentage points over the last year. So, a period of calm should really be a blessing. The fact that it's holding in place should actually be seen as a very positive sign and we hope that it stays this way for a while as the markets get used to the new valuations.

The triangle patterns that we've been tracking are holding up well. To recap here are the technical patterns for Bitcoin and Ethereum.


So... until we see a breakout of these formations, we should probably take a look at the rest of our portfolios and be sure that everything else is on track. Remember, the key to any good investment is sustainability and diversification.

Disclosure: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.

Fed Day; Crypto Funk

Related Articles

Fed Day; Crypto Funk

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email