• Bitcoin is up 11.35% over the past week, after a rally on Sunday brought the price to almost $9,000
• BitcoinSV gained 93.17% for the last week, continuing the spike started by Wright’s copyright claim
• Tron rose 22.69% on last week’s trading, taking advantage of the 2019 crypto rally
• Cavco, a modular home developer, shot up 29.76% after Q4 earnings beat
• Nabors Industries, an oil and gas drilling contractor, lost 28.91% on the previous week
Top trading ideas:
Bitcoin Reaches Its Highest Price In Over A Year
$9,000 is an impressive number...
but Bitcoin can still move higher. On Sunday, Bitcoin reached just over $8,900
, hitting a number that hasn’t been matched since May 2018.
This coincides with a key indicator, the 20-day moving average, curling upwards to indicate a bullish turn
. Everything is looking up for Bitcoin, and especially for Bitcoin HODLers who waited out the crypto winter.
Over 9,000? Well, it hasn’t broken 9k just yet, but a sharp rally Sunday sent the price zooming,
from around $8,000 to a peak of $8,997. That does mean that our projections at Monfex Research are still on track, and $11,500 remains a reasonable price target.
What if it tumbles?
There’s a bit of evidence for this, as the chart starting from the depths of the crypto winter in December is nearly identical to the chart in 2015, which resulted in a 40% correction. However, the effect of hype on Bitcoin is well known, and buying pressure thanks to the current rally’s peak will most likely continue for the near future.
What’s past $11,500? Honestly, no one knows yet, but some sort of correction will probably be in the books. However, a major event coming to Bitcoin may keep the price pressure trending up - the Bitcoin halving.
The block reward will fall from 12.5 BTC To 6.25 BTC
, effectively halving the amount of new bitcoins entering circulation and pushing demand up.
Wut We Think: There are many, many people who regret missing the start of the bull run. Don’t be one of them. If you missed out on your chance last time, then going in now, is probably your best bet for making sure you catch the next peak. Especially as institutional investors are getting into the game, and a Bitcoin ETF on the horizon, now is exactly the right time to avoid future regret.
Crypto Is About To Get A Lot Less Anonymous
At long last, the regulations are catching up...
and it's bad news for anyone who believed in crypto’s libertarian, anonymous future. The Financial Action Task Force, or FATF, is primed to introduce new anti-money laundering and know-your-customer requirements to crypto trading
in June 2019
. Combined with the EU’s anti-money laundering Direction 5 (AMLD5) coming into force at the end of the year, these regulations aim to make anonymous crypto transactions a thing of the past.
What even is the FATF?
Properly known as the Financial Action Task Force, it was set up
as a G7 international organization in 1989, focused on combating money laundering and terrorism financing. It issues ‘recommendations’, which, while technically optional, can result in a country or business being blacklisted from the global financial system if not followed.
That seems pretty harsh, what’s it got to do with crypto? A big risk for crypto has always been the interest of governments, and it’s no surprise that they’ve turned their eye on ensuring that crypto isn’t used for nefarious purposes. That means introducing anti-money laundering measures and know-your-customer compliance requirements on exchanges and possibly even wallet providers.
What sort of effects will this bring?
Well, it will probably kill the cryptocurrency promise of a censorship-resistant currency
. But these regulations won’t affect the technology directly - it’ll instead target the heavily centralized exchanges that most crypto users interact with - though, it may have the opposite effect of decentralizing crypto from exchanges and into other areas.
Wut We Think: Ultimately, despite what some die-hard enthusiasts may claim, cryptocurrencies have long been trying to break into mass adoption, but the lack of regulations and transparency has kept many average users away. Regulation may be onerous but it may just be the thing that brings crypto in line with other financial products. And that can only be good for crypto.
Fiat Chrysler and Renault Might Just Become The 3rd Biggest Car Company
Hear the wedding bells ring in the auto world…as reports have emerged that automakers Fiat Chrysler and Renault submitted a proposal for a $35 billion merger. Fiat Chrysler, which proposed the merger to Renault’s board, claims that the merger would make them the 3rd biggest car company in the world, and shift billions of USD in savings to electric and self-driving vehicle investment.
How have the markets responded? Pretty well, it seems! Renault stock is up 15% on the day, while Fiat Chrysler is up 11% on the news.
This handily beat out the Euro Stoxx 50 index post-EU elections, which was only up 0.5%.
What would the merger actually mean? In practical terms, the merger would allow the two companies to gain large savings as redundancies are cut. The two companies expect, if the merger goes through, to save
up to $5.6 billion annually
So it’s a done deal? Not exactly. While both companies are receptive to the merger proposal, the French government, which owns 15% of Renault
has said that it wants to make sure that the conditions, especially for workers and unions, are kept up to Renault’s standards.
Wut We Think: Despite both being car companies, both Fiat Chrysler and Renault complement each other quite well. The French automaker is nearly unknown in North America, where Fiat Chrysler draws 80% of their sales. Fiat Chrysler will shore up their Europe operations, and have more room to invest in developing economies, especially after Renault’s alliance with Nissan entered shaky waters after the arrest of the Renault-Nissan CEO. The two companies do seem like a perfect match - and it looks like the markets are responding to the happy couple with lots and lots of stock-price raising gifts.