Maintain Momentum

Hi Everyone,

As the crypto market progresses, we’re seeing vast differences in the way that each country handles them. Some are taking a more supportive stance and some are unfortunately not.

Over the weekend the SEC of Thailand gave an update that was a real head-scratcher, to say the least.

They have removed support for Bitcoin Cash, Ethereum Classic, and Litecoin, and reaffirmed support for Bitcoin, Ethereum, XRP, and Stellar Lumens.

More specifically, they were clear to specify that this support is referring to issuing tokens on top of those respective blockchains (ICOs) and using these cryptos as a base pair for trading at exchanges. Meaning, that it is now illegal to issue an ICO on the Litecoin blockchain and exchanges are banned from allowing pairs like ETC/XXX.

Of course, of the three cryptos that have seen support removed, none of them are currently being used for ICOs nor are they being used by exchanges as a base currency. So by their own summation, they have are not having any real impact on the market.

Thailand is a fairly small market so in any case, we shouldn’t expect any real impact on crypto prices off the back of this announcement. What’s interesting here is that they’re actually doing their homework and getting into specific cryptos almost like an investor might.

Only time will tell if this strategy will pay off but what is clear is that they may be creating more work for themselves as they may need to update the status of individual coins based on market forces. Should any single cryptoasset gain or lose ground in the market, they could be forced to update their policy. Also, they’ve only weighed in on 7 cryptos, leaving the rest with a big question mark.

eToro, Senior Market Analyst

Today’s Highlights

  • Closer to a deal
  • Get Bucked
  • BTC transactions hit new high

Please note: All data, figures & graphs are valid as of March 4th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Stocks are strong this morning. The main narrative circulating financial media is that they’re rising on the optimism of an upcoming US-China trade deal.

From what it seems, the US is now willing to drop $200 billion in tariffs should a deal be reached. Still in question is whether those tariffs would be dropped gradually or all at once. No matter what the details, it seems like we’ll be looking forward to a Trump-Xi summit to put a lid on this, possibly by the end of the month.

Meanwhile, President Xi has more pressing matters on his hand as the ten-day, 3000 member, Chinese National Congress session kicks off tomorrow. We’ll be watching closely for updates about the economic outlook, support for foreign investments, and of course the trade saga above.

The China 50 index has been flying lately, it will be interesting to see if they can maintain momentum.

Jawboning the Buck

Ever since his election, Donald Trump has done his best to put downward verbal pressure on the US Dollar. But his statements at a Maryland conference were a bit more confusing than usual.

Trump also reiterated that the Fed was doing damage by raising rates too quickly, which is even more confusing given the Fed’s recent shift in policy. Those of you who read regularly know exactly what I’m talking about.

In any case, the statements did seem to have some impact as the Dollar opened up the week with a small gap down (purple circle). However, the effects have since worn off and we’re up by now.

The stronger Dollar also seems to be having a negative affect on gold, which has fallen below the $1,300 mark.

Crypto Markets

Whether or not due to a stronger dollar, it seems the crypto markets are decidedly in the red this morning.

Volumes have subsided somewhat from the late February excitement and volatility remains subdued. Transactions on the world’s favorite blockchain however, have seen yet another significant uptick as Bitcoin now processes an average of 4.05 transactions per second.

We continue to monitor volumes in emerging markets and worth noting that the spike we recently saw from Indonesia seems to have sustained itself.

The first monthly gain in half a year has not gone unnoticed and has even caught some mainstream attention. Just imagine what two could do.

Let’s have an amazing week and an amazing month ahead!

Best regards,
Mati Greenspan
Senior Market Analyst

Connect with me on….




Your Social Investment Network –

eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority. eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission.

This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.