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Bitcoin Bounds Toward $6,000 as More Institutions Embrace Tokens

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Comments of the Day

08 May 2019

 

 

Video commentary for May 7th 2019

 

 

Eoin Treacy's view

A link to today's video commentary is posted in the Subcsriber's Area.

Some of the topics discussed include: Trade War escalates contributing to some profit taking and further consolidation of recent strong gains, gold steady, bitcoin strong, oil eases, bonds firm, China steady following reserve requirement cut, 

 

 

EU Cuts German Growth Outlook, Sees 'Pronounced' Euro-Area Risks

This article by Viktoria Dendrinou for Bloomberg may be of interest to subscribers. Here is a section:

Most of the downgrades were less severe than in the previous report in February, apart from Germany, where the 2019 prediction was slashed to just 0.5 percent from 1.1 percent. Officials in Brussels warned that downside risks to the region’s outlook remain “prominent.”

The forecasts reflect more pronounced weakness in the region, which has stumbled due to a slowdown in the global economy, unresolved trade disputes and “exceptional weakness” in manufacturing. Meanwhile sentiment has taken a hit from disruptions in the auto industry, social unrest, and uncertainty related to Brexit.

German carmaker BMW said on Tuesday that the economic backdrop is “increasingly challenging” and business conditions are “expected to remain volatile.”

“As initial deadlines for U.S.-China trade negotiations and Brexit have passed without resolution, various uncertainties continue to loom large,” the European Commission said in its quarterly report. “An escalation of trade tensions could prove to be a major shock.”

 

Eoin Treacy's view

The Eurozone is heavily dependent on international trade and Germany’s persistent surpluses are very much tied to export growth. Trade wars and the continued transition of the automotive supply chain towards battery powered vehicles represent significant challenges to both economic output and employment.

 

 

Email of the day - on oil prices

“May I clarify something? The item denoted as Oil (1st West Texas) (CL1 COMB COMDTY) in the Chart Library - is this the Spot Price for WTI? Or is it the near-term futures price for WTI? Thanks in advance.“

 

Eoin Treacy's view

Thank you for this question which other’s may also be interested in. The CL1 ticker is for the 1st month continuation chart. Oil trades on one-month contracts so it rolls with the most active contract at the end of every month.

 

 

Trade Deal Delayed, Not Yet Denied

Thanks to a subscriber for this note from Gavekal which may be of interest. Here is a section:

 

 

Eoin Treacy's view

A link to the full report is posted in the Subscriber's Area. 

 

 

Bitcoin Bounds Toward $6,000 as More Institutions Embrace Tokens

This article by Todd White and Eric Lam for Bloomberg may be of interest to subscribers. Here is a section:

Fidelity Investments, which began a custody service to store Bitcoin earlier this year, plans to buy and sell it for institutional customers within a few weeks, according to a person familiar with the matter.

“Fidelity alone doesn’t move the entire needle, but Fidelity with E*Trade and Ameritrade and Robin Hood and a whole host,” said Chu, whose firm is a blockchain investment and advisory company. “You’re seeing a critical mass of these types of asset managers and brokers providing retail exposure and retail access to crypto.”

Some investors who expect Bitcoin to break above $6,000 see it quickly finding a new resistance level. The token will likely find fresh headwinds in the $6,000-$6,500 range, said Charlie Morris, a fund manager and founder of cryptocurrency price discovery site ByteTree.com in London.

“It would be unsurprising if that former support became resistance -- something that is quite normal in markets,” Morris said.

 

Eoin Treacy's view

Cryptocurrencies started off as a purely retail investment. The anticipation of institutional involvement contributed to the mania in 2017 but the introduction of futures was an anti-climax. In fact many of the biggest holders used the futures to hedge their long exposure and contributed to the 1987 style crash. However, even though there were some hedge funds active in the space the majority of institutional investors were precluded from participating because of custody issues.

 

 

2019: The 50th year of The Chart Seminar

 

 

Eoin Treacy's view

I have had word from the inestimable Mrs. Fuller that the London Philharmonic Orchestra are planning a memorial concert on October 5th at the Royal Festival Hall. It is envisaged that there will be drinks and canapes afterwards. Since this is the 50th year of The Chart Seminar we will be conducting the event on October 3rd and 4th.

I also plan on holding a New York event, potentially in June, and am in discussions with a partner in how best to organise it.

In the meantime, if you have any questions, would like to attend, or have a suggestion for another venue please feel to reach out to Sarah at [email protected].  

The full rate for The Chart Seminar is £1799 + VAT. (Please note US, Australian and Asian delegates, as non-EU residents are not liable for VAT). Annual subscribers are offered a discounted rate of £850. Anyone booking more than one place can also avail of the £850 rate for the second and subsequent delegates.

 

 

Eoin's personal portfolio: precious metal long initiated March 8th

 

 

Eoin Treacy's view

Details of this trade are posted in the Subscriber's Area. 

 

 

 

 

 

 

 

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