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Mati Greenspan, Senior Market Analyst at FX broker eToro, provided his daily commentary on traditional and cryptographic markets for January 16, 2019.
The highlights include:
- Bitcoin futures market: The contracts for bitcoin futures are currently in arrears, but given their low trading volume, this may not be significant.
- Global economic trust on debt: The Institute of International Finance said that our entire economic system is increasingly dependent on debt. Markets are still active and earnings reports could provide further impetus.
- Ethereum update delay: A critical bug was found in the last minute and the main developers removed the plug. This caused a sharp drop in the price of Ethereum.
Traditional markets
You may have noticed that we now include a countdown to Brexit in the highlights section, right next to the US government's closing counter. I think they fit perfectly. Two governments that descend into a state of agitation for political disputes.
Today, Theresa May's government will see the final test. If it loses its vote of no confidence, the United Kingdom is heading for new elections … again.
More in the East, China has decided to inject the market with a record level of stimulus. Yesterday's tax cuts may have been insufficient to maintain growth, so they have gone the way of free cash for the market.
Furthermore, it seems that the Institute of International Finance has made a rather shocking estimate. It seems that our entire economic system, from our homes to workplaces and our governments, is increasingly dependent on debt.
Given all of the above, it is no wonder that the European Central Bank is now sounding a new alarm.
Do not worry about any of this though. Equity markets are today. I hope the financial sector earnings reports are going well.
Late Ethereum update
After all the excitement, the cryptic community was disappointed to hear last night that the long-awaited update of Constantinople was delayed once again.
It seems that a critical bug was found at the last minute and the main developers removed the plug. Here we can see the crypto-market, led by Ethereum, which falls shortly after the announcement.
This morning we are seeing a bit of recovery, but it was really scary. I mean, it's good that they picked up the mistake before going live, but the fact that he arrived within 30 hours of the update is a little nervous.
These things happen, practically all the major platforms, including Windows, Android and Apple operating systems, have already encountered critical bugs. Even if it would be possible to release a patch, redirect the network and return to normal, that kind of process could in itself have irreparable damage.
We hope that Constantinople, every time it is ready, goes ahead without further hitches.
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