The Crypto industry makes progress but still has a long way to go

Cryptocurrencies appreciated in value this week and did not hesitate to extend their rebound on Wednesday as Bitcoin price is now above $7,500 for the first time since June. Rival cryptocurrencies like Ripple, Etherium and Litecoin also followed the positive trend however Bitcoin remains deeply below its all-time high in the previous December. It is very obvious that some positive and productive developments in the finance world have created this bullish movement for cryptos and the advancement it is not by chance nor trend.

According to reports, the CFA institute has added Crypto currencies as a subject in its professional examination and the subject will be studied in depth by the program participants. CFA is a very serious and professional institute and is among the top qualifications in the finance industry. The qualification, which a very small number of people hold on a global scale, is a vast source of knowledge broken down in several modules which all together could be referred to as the finance bible. The qualification is a series of difficult examinations in which the candidate is required to sacrifice greatly and study consistently. Make no mistake, these examinations are very demanding and the person qualified as a Certified Financial Analyst is considered as privileged somewhat. Now, in order for this Institute to add Cryptocurrencies as a study subject, it must mean that this financial instrument has reached a level of significant awareness and it no longer belongs to a so called bubble or scam as portrayed by many. It also means, that future qualified CFA’s most probably could be required to give Cryptocurrency investment advice or perform in depth studies on the topic. It also exemplifies the fact that such an important institute recognizes digital currencies importance and dominance in the financial world. Of course, an opinion on Crypto’s will come solely to the person’s critical thinking and individuality, when it comes to giving advice.
On a separate note, IBM will be partnering with U.S.-based financial services provider Stronghold in order to support a new digital coin called Stronghold USD which will belong to the group of stable coins. Stable coins are digital assets that follow other financial instruments like major Currencies or Metals and imitate their movements. Stronghold USD, will be pegged to the US dollar and clients will deposit in USD in order to purchase the coin. Stronghold USD’s main use will be aimed to help financial company’s fulfill their payments and transactions faster and safer. Foreign exchange matters could also be removed as applications that use block chain and stable coins become more mainstream. Companies like IBM with massive reputation and experience getting involved with cryptos and block chain technology, could be a trick down the sleeve for the industry. It could most certainly remove negative publicity towards digital currencies, and help restore confidence in the near future.

Moreover, we have noticed a strong change of mind towards cryptos lately. More investors are now open towards considering coins. For example, Chief Executive Officer of Blackrock Larry Fink said in an interview with Bloomberg that their firm is currently researching crypto coins. Though, Fink was quick to state that they have not come across investors interested in Bitcoin, the fact that they want to learn more about how the instrument works is the first step to making progress in this industry.

As a conclusion and to keep it completely sincere, we must stress the fact that a lot has to be done so that digital coins become a recognized way of exchange. Even though we are not completely ready yet to let go of our real money and traditional ways of trade, the day when transaction will be done only between the purchaser and the seller, without a third party involved, could be getting closer.

Bitcoin with its latest rally broke two of previous resistance levels now turned to Support $7,120 and $6,700.

Should the digital currency continue its upward movement, it could move towards the $7,690 resistance level and break it aiming for the $8,186 resistance area.

The crypto coin could also remain in a sideways movement between the $7,690 resistance level and the $7,120 Support level.

Should Bitcoin come under selling interest, the coin could drop to the $7,120 Support level and aim for the $6,700 Support barrier. $6,700 has been tested various times in the past and is considered a strong support level.

Other economic highlights for today (7/18/2018)

In the European session we get UK Inflation data along with the European Inflation data both for June. In the American session we get the Building Permits and Housing Starts both for June .Later in the American session we get the EIA weekly crude oil stocks reading.

Powell’s testimony helps boost the US Dollar

The dollar rallied yesterday after Chairman Powell said the Fed will continue to slowly raise interest rates for now . Powell stated, the reason was to keep inflation near its target amid robust conditions in the U.S. labour market. Comments like the job market has strengthened and inflation has increased mostly due to gasoline and energy prices stood out. He also added unemployment was at it’s the lowest and that the US economy grew in a solid pace the first half of the year. With basically a revision of the positive economic outlook in the US the USD bulls were set free during the American session.

EUR/USD dropped during Powell testimony and landed very near our 1.1640 support level. Today, in the European morning the pair could follow up on sideways movement as the financial data to be released from the Euro-zone could be neutral for the common currency. However, in the American session the pair may prove to be sensitive to the US financial data to be released or Fed Chairman Powell testimony later on. Should the pair find extensive buying orders along its path we could see it rising and breaking the 1.17150 resistance line. Should it come under selling interest by the market, we could see the pair aiming for the 1.1640 support barrier.

At this point, a small comment must be made on Crude Oil, as the commodity has dropped approximately $5 in the past 7 days. The Trump Putin meeting plunged Oil prices as comments made from both presidents indicated a joint attempt to regulate Oil prices. Also the US considerations on waivers on countries importing Oil from Iran helped drop prices.