Category: Analysis

Bitcoin to boom through 2020

Oliver Isaacs has come out with some very strong words on the potential for Bitcoin to go wild for the rest of 2019 and start 2020 above all time highs. Isaacs is of the belief that the global economic uncertainty surrounding US-China, alongside wider unease in more mainstream markets is pushing sentiment towards Bitcoin becoming a ‘safehaven’.

“I believe bitcoin has the potential to hit $25,000 by the end of 2019 or early 2020. There are multiple drivers behind the recent resurgence. There are geopolitical, technological, and regulatory drivers. The net effect of the trade war between the U.S. and China has led to a sudden interest in bitcoin as a hedge on investments.”

BTC $25000 in 2020

Crypto Analyst Oliver Isaacs thinks yes

The wider adoption of cryptocurrencies and Bitcoin as payment methods in general in more mainstream retail outlets has also been mooted as a reason for the upward spike.

Our view is that sentiment is definitely on the upside since the 2018 losses but that it will likely take a little longer than 6 months for BTC to crash through it’s all time highs and a little more regulatory support before this happens. Time will tell.

ESMA Effect – Forex Brokers Struggling in 2019

ESMA Effect

CMC Markets announce a profit drop of 88% – what does this mean for the wider market?

The ESMA effect on brokers is starting to become more apparent. With profit warnings having come from some of the forex industries big players recently it is evident that ESMA is having an impact on the brokers but what is the underlying impact it is having on traders? Are we to believe what traders becoming less exposed to volatility or is the low volatility seen over the past 12 months an extenuating circumstance that is making us all come to the wrong conclusions?

With longterm impacts yet to be known, the short-term doesnt look too good for investors in trading firms. CMC markets lost more than 35% revenue YOY, 88% of profits and their CFO as a result. IG and Plus500 have seen their shares drop more than 10% following the announcement from CMC so it seems like the industry is feeling the bite.

Where do the brokers and traders go from here? Stocks, cryptocurrencies, ETFs? It may be we see more of a pullback but we are of the mind that the pace of positivity may quicken towards the back end of 2019.