Daily market review for 12.06.2018

2018-06-19 12:13:34

The leading American cryptocurrency exchange Coinbase has officially announced its plans to become the world's first cryptocurrency broker-dealer with the possibility of securities offering in the blockchain, which will carry out activities in accordance with the requirements of the Securities and Exchange Commission (SEC).

Asiff Hirji, President and Managing Director of Coinbase, said:

“Today, we are pleased to announce that we are becoming a US-regulated trading platform based on the blockchain securities. We believe that this is an important point not only for Coinbase, but for the entire cryptocurrency ecosystem. “

The announcement in the company's blog says that Coinbase is in the process of obtaining a work permit as a fully regulated brokerage company. This will be possible after the exchange receives a license of a broker-dealer, an alternative trading system (ATS), and a registered investment adviser (RIA).

One of the steps to achieve this goal was the acquisition of Keystone Capital Corp, Venovate Marketplace and Digital Wealth.

What does all of this mean?

If Coinbase succeeds in obtaining licenses, it will significantly expand the list of services provided, and in fact will make the company the first brokerage firm regulated by the SEC and FINRA (Financial Industry Regulatory Authority).

After obtaining permission, it will be able to offer trading in cryptocurrency securities, margin trading and over-the-counter trading (OTC), as well as new market products. Considering the fact that there are a lot of digital assets in the market, and a sufficiently large number of them meet the requirements of the definition of “securities”, in future this can contribute to a serious expansion of the market. In Hirji's words, it sounds like this:

“Ultimately, we will be able to see a world in which we work with regulators to tokenize the existing types of securities, bringing to this space the benefits of the cryptocurrency markets - such as round-the-clock trading seven days a week and real-time calculations.”

Let us recall, shortly before, Coinbase added a set of tools for institutional investors. In addition, the exchange is in negotiations to obtain a banking license.

Now, let's move to the technical analysis of bitcoin (BTC):

Bitcoin continues to stay at $6,640 and apparently it doesn't intend to fall down. There was an attempt to grow with a new correction, but judging from the chart, more than likely, bitcoin will continue its upward movement. Let us recall, on Wednesday, there will be a meeting of the Federal Reserve regarding an increase of the interest rate. The probability of a positive decision is high. If this happens, we expect a correction in the US stock market. This means fixation, that is, the sale of shares and, as a consequence, the transfer of assets from shares into bonds and cryptocurrencies, as an alternative instrument. That will give a new impetus to the growth of cryptocurrency. The first resistance level is at $7,070. The next level is $7,340.

Technical analysis of Ethereum (ETH):

Ethereum also was at the level of $500 and went up. Our forecast is the same as for bitcoin, we expect growth at the Fed meeting. The first resistance level is $590. More than likely this trade idea will begin to be realized on Thursday already.

Technical analysis of Ripple (XRP):

Ripple wasn't an exception to the rules and also stopped at $0.55. There is a resistance level at a price of 0.55. Ripple pushed away from it and started to grow. The first resistance level is at $0.60, the next level is $0.77. Let's wait for tomorrow's meeting of the Fed.

Disclaimer. This review is only for information purposes and cannot be considered as a proposal or an indication to perform certain transactions in the financial and commodity markets. The estimates and recommendations in the review are the personal opinion of the company's analysts. The company's view on the prospects for individual financial instruments is valid as of the date of the report. The Company does not assume any liability and liabilities for compensation for damage that may result from the use of this report.
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