Mati Greenspan, Senior Market Analyst at FX broker eToro, has provided his daily commentary on traditional and crypto markets for July 24, 2019. The text below is an excerpt and does not contain the full analysis.
Everything happens for a reason, even if it’s not apparent at the time.
Yesterday, I posted something on twitter that caught quite a bit of attention but soon turned out to be not entirely accurate.
Not sure how it slipped my attention but a reporter from The Block pointed out that I was actually sharing old news. TD Ameritrade has been offering the CME bitcoin futures for quite a while now and there have been indications that they’re working on a new product for retail customers that will be backed by real BTC.
Despite my swift apology, it seems that the news was already out and was picked up by several crypto-related news sites as well as social influencers like Anthony Pompliano and Mike Novogratz. My sincerest apologies to all. Everyone makes mistakes from time to time and I will certainly be more careful about what I share going forward.
However, it does seem like this episode had an incredibly positive end result because in an interview with The Street later that day the CEO of Ameritrade Tim Hockey did make a groundbreaking statement.
Now, I couldn’t say with absolute certainty that Hockey was inadvertently responding to my tweet but it does seem as if the social engagement generated by this bit of ‘fake news’ was sufficient to show just how celebrated such an announcement will be once it is made and the power of a strong community on social media.
Today’s Highlights
- Pound on Johnson
- Lots of Action
- Crypto Social Market
Please note: All data, figures & graphs are valid as of July 24th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Later today, Boris Johnson the new Prime Minister of the UK will give his inauguration speech. Surprisingly, the British Pound is looking quite positive about this event.
ECB Meeting
The Eurozone PMI figures that we discussed yesterday actually came out even weaker than the weak forecasts that analysts had set and the Euro is having a rather mixed reaction.
Tomorrow the European Central Bank will announce their interest rate decision, and though most analysts don’t think they will make any changes, there’s no denying that they’ve been extremely dovish lately and have even hinted at bringing back their quantitative easing program.
Later today there is a slew of interesting earnings announcements including Caterpillar, Tesla, and Facebook. For big tech, however, there does seem to be some things that are more pressing than earnings at the moment.
Crypto Social Market
As we mentioned above, the power that social media can have on the markets is nothing short of incredible, but in truth, it goes much deeper than exerting pressure on companies or getting a response on issues. In some cases, it can directly affect prices.
In this article from Reuters, we can see that several forward-thinking companies are already offering proprietary services that are designed to understand the crypto sentiment on social media apps like Twitter, Reddit, WeChat, and Telegram and in some cases deploying bots to trade based on this data.
Leading the charge on Twitter is a company called The Tie, who’s CEO I had the pleasure of meeting yesterday.
As we’ve discussed many times before, the evaluation metrics for cryptoassets are still very much under construction. As a large portion of the value is derived from the network effect, I believe that this type of social sentiment data will play a much larger role in cryptoasset evaluation going forward.
Let’s have an amazing day!
Mati Greenspan can be found on LinkedIn, Twitter, or etoro.
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.