Daily market review for 27.06.2018

2018-06-27 15:29:25
Investment giant of Silicon Valley, Andreessen Horowitz (a16z), has launched a new fund of $300 million, focused on cryptocurrencies.
As they say in a post published on Monday, the fund will be called a16z. One of the co-chairs of the fund will be former federal prosecutor and assistant to US Attorney General, Kathryn Haun. The report also says that Haun has become one of the company's last prime sponsors.
The company's intention to significantly expand its influence in the industry is not surprising, given that the investor has already invested tens of millions of dollars in projects and protocols of the industry, which are built around a range of options for blockchain usage. Andreessen Horowitz also invested in a number of well-known start-ups, including the Coinbase exchange. In addition, the company participated in rounds of investment in projects such as Ripple, Openbazaar and the cryptocurrency hedge fund Polychain.
Prime sponsor Chris Dixon also noted that the crypto fund will adhere to a long-term strategy in its investments.
“We have invested in cryptocurrency assets for more than 5 years,” he wrote. “We have never sold any of these investments and do not plan to do it in the near future. We have created an a16z crypto fund to be able to hold investments for more than 10 years. We plan to consistently invest over a long period, regardless of market conditions. Even if there comes another “crypto winter”, we will continue to actively invest.”
Dixon also hinted that the a16z fund will, for the most part, concentrate its efforts on projects with a “non-speculative application”.
“We want services, based on cryptographic protocols, to be used by hundreds of millions and even billions of people,” Dixon wrote. “Cryptocurrency tokens are a class of own assets of the digital networks, but their value is due to basic practical examples of use.”
In these latter days, the popularity of cryptocurrency funds has grown significantly - more companies are making a decision to support industry participants. In February of this year, Coinshares Group announced the launch of two new investment mechanisms tied to cryptocurrencies. The “active” fund will follow the initial strategy with a lot of cryptocurrency assets. The High Capitalization Fund will become a more passive and large fund for joint targeted financing.
Spring of this year was also marked by the opening of two large funds for investment in blockchain projects, both of which were launched in China. In April, a fund of $1.6 billion to invest in blockchain start-ups was launched in Hangzhou with the support of the city authorities. A few weeks later, the authorities of the Chinese city of Shenzhen, following their counterparts from Hangzhou, also supported the $80 million fund for investment in blockchain start-ups.
Now, let's move to the technical analysis of bitcoin (BTC):

Bitcoin went to a correction from the level of $6,220 to $6,000, according to our yesterday's forecast, but it did not fall as deep as we had expected. This fact gives us reason to assume that bitcoin can both grow and fall. There is a turning point now. We can only wait and observe. The nearest resistance level is $6,220. The nearest support level is $5,760.

Technical analysis of Ethereum (ETH):

Ethereum realized our yesterday's forecast, falling from $480 to $419, short of $415. The situation with ethereum is now uncertain. We just need to wait, and then the picture will become clearer. If ethereum begins to grow, then the nearest resistance level of $460 will be waiting for it. If to fall, the nearest support levels are $415 and $370.

Technical analysis of Ripple (XRP):

Our yesterday's forecast also was quite accurate, ripple dropped to the level of $0.436. This error, of course, can be neglected. What should we expect now? As in the forecasts for bitcoin and ethereum, we propose to wait until the picture clears up. If ripple starts to grow, then the nearest resistance level is $0.50. If to fall, the nearest support level is $0.37.




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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