The crypto market remains merely unchanged since last week as the pros and cons of the industry news reveal a somewhat stable situation of current uncertainty as to the direction the market will move.
First, FCA short for Britain’s Financial Conduct Authority, reposted its warning to Investors about crypto-currency related investment scams. This warning was first issued back in June, but the issue seems to persist, with the scammers finding new ways to trick investors into cash deposits. Making it more direct, the fraud is now enacted through the use of celebrities’ or well-known individuals which are portrayed in advertisements to be involved in crypto currencies activities. These advertisements provide links to websites for investments either using crypto-currencies or traditional cash. The fraudsters deceive potential clients by stating they operate within the UK providing also London based addresses. All the information is false as the UK authorities would have been able to locate the scammers in no time and so they actually operate outside the UK.
On other news, Nvidia Corp a NASDAQ listed company saw its shares tumbling by 5 percent in after-hours trading during past Thursday after the chip maker revealed that crypto-currency fueled demand had dropped adding its sales could be lower than Wall Street predicted. It must be emphasized that during the previous quarter, the sales to so-called miners of digital currencies such as bitcoin and ethereum was equal to $289 million, approximately 1/10 of Nvidia’s revenue. Nvidia previously had estimated that during the fiscal second quarter ending July 29 sales for crypto-currency chips would reach about $100 million. On the contrary, last Thursday it reported actual income of only $18 million.
On another front, Bitmain Technologies Ltd., a leading producer of crypto-currency mining chips, is scheduling a Hong Kong initial public offering with the potential of raising as much as $3 billion, various sources stated. The firm intends to file a listing application with the Hong Kong stock exchange as early as September. Bitmain Tech Ltd., is valued at $15 billion and is expected to control as much as 80 percent of the market for crypto mining. If the IPO progresses as planned, it would represent a major test of investor appetite for digital-currency companies.
The first self-regulatory organization for crypto-currencies is now reality. This organization aims to promote transparency in the crypto world and various crypto-currency exchanges have already signed to it. The organization is under the name of Virtual Commodity Association, with founders the very popular Winklevoss brothers of Gemini Trust Co. The first members include Bittrex Inc bitFlyer USA, Bitstamp, Inc. and Gemini. It was said that they will make a fresh start in a September meeting with clear objectives, rules and guidelines in order to keep all members on the same page. It could be the case that crypto market makers could be impatient with authorities and our now depending on themselves to improve and set standards for the industry. In our humble opinion, this is good news as the choice to rely on oneself, displays confidence and determination for further improvement.
In addition, it seems authorities are still not convinced with the Crypto backed ETFs and are still stalling up on licenses for operations in the field. However Blockchain capital partner Spencer Bogart stated the authorities are now running out of excuses not to provide licenses. Firms are now monitoring markets better and procedures are better implemented with surveillance systems.
Bitcoin against the US Dollar dropped during Tuesday’s early Asian session displaying a bearish appetite. However corrected upwards later and regained strength making up for losses. It is now moving between our $6,470.67 resistance level and the $6,366.09 support level and is approximately trading higher than last week after today’s correction.
If the crypto-currency is undertaken by a bullish sentiment we could see it break the $6,470.67 resistance level and aim higher for the $6,528.20 resistance barrier.
On the other side, should the digital currency drop lower, it could break the $6,366.09 support level aiming lower for the $6,306.16 support hurdle.