One of the rumours that we spoke about yesterday that was driving the crypto market down has now been confirmed to be false.
This statement was in response to recent reports that Goldman Sachs was abandoning plans to open a crypto trading desk. The crypto market is making a mild recovery so far this morning. Let’s hope it continues.
Jobs Day on Wall Street
EU crypto meeting
Please note: All data, figures & graphs are valid as of September 7th. All trading carries risk. Only risk capital you can afford to lose.
It’s been a terrible week for the stock markets. Concerns about a trade war are now mixing with concerns about emerging markets. Strong corporate earnings have been the key to pushing stocks to record levels of late but now there are some questions even around those.
All in all, the losses may be unfamiliar to many traders who’ve grown accustomed to a market that rarely pulls back. However, when we zoom out on the chart we can see that the only thing that has been lost this week are the gains from the previous week.
Today, the markets will focus in on the NFP jobs report from the USA. The perception that the American economy remains strong has been a major theme so many analysts and traders will be watching this announcement from the corner of their eye.
The forecast is that 191 thousand jobs have been added in August. If the report confirms this, trading can resume as normal. However, any surprise of ~80k above or below the headline number will create some noise and set the tone for this Friday’s trading on Wall Street.
For crypto watchers, the NFP announcement will be most interesting to watch for its effect on the US Dollar.
Here we can see a close up of the double dip on Wednesday and Thursday in Bitcoin, Ethereum, and XRP.
What’s interesting to note is that though XRP did see nearly as much damage as Ether in the beginning, it was the quickest to recover once the air had cleared and things were looking normal again.
Today, we may get some interesting updates on crypto regulation in the EU that could make things move a bit depending on what’s announced.
Many thanks to everyone for reading and participating in the daily market updates. Wishing you all an outstanding weekend!
This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation. The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro. Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies are not supervised by any EU regulatory framework.