Could bitcoin and other “risk-on” assets be open to a possible plunge alongside the traditional stock market?
With what is happening in the stock market, inferences could easily be drawn that social media (tweets particularly), not only affect the traditional markets but also has real-time effects on digital assets. With a recent revelation from the United States president-Donald Trump, where he makes plans to increase the tariffs on Chinese-made commodities from 10% to 25% in a few days time, global assets like stocks and bitcoin BTC, recorded a minus in the market.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars….
— Donald J. Trump (@realDonaldTrump) May 5, 2019
Bitcoin Records Slight Dip with Trumps Chinese Tariff Statements.
While many will argue that President Trump’s intentions had a good possible economic result, the stock market took the news quite badly. As at 1 pm today, Futures for the S&p 500 were 1.75% down and this would invariably mean an open red. More so, as of the time of compiling this article, there exists a whopping drop for the SSE Composite Index of about 5.35%, which means the loss of billions of dollars in less than 24 hours.
Just as we mentioned earlier, bitcoin also recorded some losses alongside its counterparts in the traditional exchanges. this was pointed out by a crypto trader who saw this trend as the Monday Asian market opened. In this trading path, BTC fell in indicating a negative reaction to the tariff threat of the U.S. President.
If we argue that BTC price loss could be coincidental, we might also need to take a look at a similar situation where BTC lost almost the same value to the Hang Sang withing the same time frame. This is yet another proof to show that though BTC is sadly still vulnerable, it also now responds to market forces.
Market participants continue to view Bitcoin as a risk-on asset.
Sunday evening's sell-off occurred simultaneously with the Hang Seng's precipitous 3.4% drop at the open following Trump's new tariff salvo. pic.twitter.com/Oa9RiVXuRg
— Light (@LightCrypto) May 6, 2019
More insights show that cryptocurrencies are risk-on and this means that investors in these areas are particularly interested in markets trending higher.
Crypto is a risk asset. Global capital flows matter. pic.twitter.com/giZ186F4kc
— Travis Kling (@Travis_Kling) April 30, 2019
Bitcoin To Become Safe Heaven As Digital Gold
From all the information provided above, it is clear that bitcoin maybe conforming to traditional markets’ risk-on assets after all.
Many might not have heard already, but bitcoin, alongside all other cryptocurrencies, have been disregarded an in fact touted as an uncorrelated asset. Check this out in the CNBC interview a few months ago where Anthony Pompliano of Morgan Creek mentioned that the correlation between BTC and the S&P (SPX) was practically non-existent. A confirmation was put forth by Three Arrows Capital’s Su Zhu, showing that given “high prices and low prices, high volatility and low volatility, the correlation between the aforementioned assets is still near-zero.
All of the correlations confirmed this Monday, have gone to validate the John Normand theory that gold remains a better safe haven or hedge against downturns than Bitcoin. John is the Head of JP Morgans’s cross-asset management arm.
According to optimists, Max Keiser’s explanation of a possible break-even for the digital asset class is a thread strong enough to hold onto. Max is of the opinion that BTC will eventually become a “risk-off” asset, hinting at a few characteristics that make it a form tradeable money.
Amongst many reasons for his belief are that BTC is a non-sovereign, decentralized, censorship-resistant and easily- transferable asset that is deliberately scarce and is not controlled by the whims of central banks and the various existing financial institutions.
The market and consumers alike may need a bit of a nudge in the right direction to truly comprehend this fact, and this is predicted to come from the impending financial crisis which experts say is much around the corner.
Have your say in our comments section below.
MoneyGram’s New Time Remittance Technology backed by Visa not Ripple
A new service introduced by remittance giant (MoneyGram) which allows users to send and receive money in real-time has been credited to visa and not the work of its blockchain-based partner (Ripple) in an announcement by representatives of the company.
The recently launched Fastsend, a new service which allows clients to send money in real-time to a phone number through a mobile application or dedicated website. While responding to enquiries from news sources about the latest concept, it was revealed to much surprise that MoneyGram did not make use of the technology of Ripple to achieve the latest product.
Do we need blockchain for real-time settlements?
MoneyGram Chief Operating Officer, Kamila Chytil informed news sources that FastSend makes use of Visa’s Direct Original Credit Transaction to send funds to bank accounts making use of Debit card deposit which is clearly not blockchain-backed or related.
Without the need for DLT, the dedicated website and app make use of an open-source cloud-based microservices. Chytil further stated that although Ripple is not involved in the new product, the firm still makes use of Ripple’s blockchain in other fields of the company.
Also, Chytil made mention of MoneyGram’s continuous effort on how to utilize blockchain in areas where it could assist to solve data privacy and regulatory obligations via distributed ledger technology. In her remarks, she spoke highly of DLT technology and cryptocurrencies, stating that the firm believes blockchain to be the future of global cross border payments and transfer of money.
As MoneyGram continues to research on the multiple use cases in order to tap into Ripple’s tools while integrating with the recent version of Ripple’s service suit to introduce cash-out service to all network members.
It is worth noting that Ripple is gaining increased support and approval among financial institutions to provide them with its DLT services in Africa with the National Bank of Egypt joining its network, this has been seen as a welcome development as it would do well for the inward remittance within the region the Ripple Network.
Nigeria Calls For an Extension of the Time Set for the Eco Currency Launch for West Africa
Nigeria, the country with the largest economy in Africa calls for a delay in the progression of Eco Currency.
Nigeria on Monday has expressed her view on the issues of the progress made so far in the creation and official use of the Eco currency for the West African region.
According to the Presidential Tweet on twitter;
“Nigeria’s position on the Eco is that the convergence criteria (between states) have not been met by the majority of countries” which will adopt this common currency”
“There, therefore, has to be an extension of time on the take-off of the single currency,”
Nigeria has its own currency, the Naira.
The Eco single currency has been a controversial issue since the idea was initiated. It was after more than 25 meetings on the subject, that the 15 member countries of the Community of West African States (ECOWAS), finalized that it would be launched in 2020.
There is currently eight out of the 15 ECOWAS countries using the CFA franc, but were looking to cut financial ties from France, their former colonial power.
The height of the controversy followed after President Ouattara of Ivory Coast all of a sudden denounced CFA for the francophone countries for the Eco currency following Emmanuel Macron’s visit to the country.
Nigeria, a member of ECOWAS, and some other Anglophone West African countries denounced the agreement. This is because the monetary policies governing the issue of Eco currency doesn’t align with the requirements adopted in the region to set up the single currency.
Written By Ogbuowelu Anthony Uchechukwu
Yahoo Finance Adds Cryptocurrency Market Data on its Website
US based financial news firm, Yahoo Finance has partnered with Coinmarketcap to add cryptocurrency market data on its website amongst other financial reporting data.
The data which is supplied by the popular cryptocurrency market data aggregator Coinmarketcap now allow visitors on the website to track the prices of cryptocurrencies daily.
Currently available on the website are 118 cryptocurrencies ranked in the order of their market capitalization. The price data on the website are denomination in USD.
The website has a feature which it calls Heatmap View. It allows visitors to see the price actions on each crypto assets. A red signal shows the asset has dipped while a green signal reveals a gain in the asset.
Registered users can add any cryptocurrency to their portfolios.
Just like coinmarketcap reports, the Yahoo Finance website also reports detailed information on each cryptocurrency it has listed in its website.
The website reports on each website various market data such as current price, changes in percentage and amount, market capitalization, volume and circulating supply.
Yahoo finance also have individual pages for each cryptocurrency listed on the website. Yahoo Finance was quoted saying “We are thrilled about this partnership which comes timely as we continue to level up our game with the new liquidity-based metrics for ranking market-pairs and an improved pricing algorithm coming soon.”
Other than data from Coinmarketcap, Yahoo Finance also have two indices Crypto 200 (including Bitcoin) and Crypto 200 EX (i.e. excluding Bitcoin)
The data on the website incorporates pricing from over 200 exchanges, according to the Finance reporting organization, the indices provide exposure to the broader cryptocurrency market by including the cryptocurrencies that represent more than 90% of global market capitalization as of the index launch date.
Its daily newsletter and blog content will also be integrated into the news stream on finance site’s cryptocurrency screener landing page as well as the individual cryptocurrency pages.
The firm said in the future, it will plan to produce more educational video features, which it hopes will further add to the educational content on the website.
Image: Yahoo Finance
Facebook to launch Facebook Pay to Provide Users With Secure and Convenient Payment Experience
Is Facebook Pay an alternative to Libra?
Facebook has announced it will be launching the Facebook Pay service to provide people with a convenient, secure and consistent payment experience across its platform.
According to Facebook, people already use payments across its platform to shop, donate to causes and send money to each other. The Facebook pay will make these economic events easier while continuing to ensure user transaction information is secure and protected.
In order to use the service, users are to add their preferred payment method once and then use the service where it is available to make payments and purchases on the facebook’s platform apps. This will ensure users are not inconvenience as they wouldn’t be required to enter their payment information again.
The Facebook Pay will be available on Facebook and Messenger this week for US customers for fundraising, in-game payments, and event tickets, person-to-person payments on Messenger and purchases from select pages and businesses on Facebook marketplace.
According to Facebook, over time, the service will become available to more people and places including on its Instagram and WhatsApp platforms.
Facebook iterates its desire to continue investment in security of its platform.
Facebook said “We designed Facebook Pay to securely store and encrypt your card and bank account numbers, perform anti-fraud monitoring on our systems to detect unauthorized activity and provide notifications for account activity”.
To the Future
The Facebook Pay is part of our ongoing work to make commerce more convenient, Facebook said and this also will make it accessible and secure for people on its app.
And it will continue to develop Facebook Pay and look for ways to make it even more valuable for people on our apps.
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