- Bitcoin daily transactions keeps hovering at its lows suggesting no substantial rebound any time soon.
- Why a possible trade war might help cryptocurrencies?.
- Coinbase is set to make its biggest acquisition in history.
Observable calmness across digital currencies may be a bit cryptic when global equity markets took a dive on Thursday. It could suggest that cryptocurrencies have become much more resilient to any external shocks, and possibly internal ones as well (just do recall that e.g. the Bitcoin price did barely respond to any theft of virtual money). Having said that, when we refresh our well-known indicator illustrating a count of daily transactions made via Bitcoin one may discover that the trend has been going nowhere lately. After a sluggish rebound since the beginning of March the trend has come back to falls boding not well for the future Bitcoin price.
- Daily transactions renewed its downtrend following an almost imperceptible bounce.
The key question we’re trying to answer in today’s analysis is whether a global trade war could be conducive to digital currencies. Any protectionist measures seem to be negative for the global economy in the long-term (including countries or organizations which implemented them) therefore the lately announced US tariffs aimed at the Chinese economy are likely to backfire in the foreseeable future.
This was seen over the course of the past hours where equities tumbled while the greenback and emerging market currencies lost ground (this is especially true when it comes to the Turkish lira as the economy is heavily dependent on external financing being necessary to replenish its current account deficit). At the same time, cryptocurrencies featured remarkable calmness as we underlined above as people could turn to using them in their transactions and to store their wealth instead of fiat currencies. If that’s right thinking we may experience an increase in daily Bitcoin (and other digital currencies alike) transactions which, however, has yet to occur. Maybe a slogan calling Bitcoin "digital gold" is something more than just a word.
- After breaking a local support set at $8440 the Bitcoin price is struggling to come back above it. If buyers fail to do so, it could generate a decent short-term selling signal with the target placed even in the vicinity of $7300.
According to people familiar with the matter (unnamed) Coinbase, the San Francisco-based cryptocurrency start-up, is in talks to purchase Earn.com, the company offering a messaging platform (mass emails). Some estimates suggest that an acquisition could be worth more than $30 billion, however, it’s still too early to name the transaction a done deal as Earn.com stays reportedly in talks with multiple parties. However, if the deal finally happens it could be the biggest acquisition for Coinbase in history strengthening the company position in the cryptocurrency world.