There’s been a strong move higher in cryptocurrencies in recent trade with Bitcoin surging to its highest level in 10-months after more than doubling in value since March. As is often the case with such an opaque market it is hard to definitively state what has caused this rally, but the recent escalation in US-China trade tensions seem about as plausible reason as any. Cryptocurrencies are often cited as a safe-haven asset - usually by those who try to justify reasons to invest given their poor efficacy as a transactional currency - and even though the longer-term correlations with equities are inconsistent at best, there has clearly been a flurry of buying as stock markets have tumbled in recent sessions.

Rather than investors seeking out inherently risky assets as safe havens, a more likely explanation is the recent drop in the Chinese Yuan and the expectation of a further depreciation when Beijing seek to make exports more attractive in response to the latest round of US tariffs. While this may not seem a major catalyst by itself, it is worth remembering how small crypto markets are compared to traditional asset classes with the total market cap in the space even after the recent surge still below $250B. Furthermore, the free float of many cryptocurrencies is far smaller still and this means that relatively small amounts of buying can cause outsized moves in the markets. While there is little by the way of solid fundamentals to support this move, if past experience has taught us anything it is that these rallies can really shift when they get going and there could well be more gains around the corner.

UK labour market improves but wages miss

The latest employment figures from the UK have been mildly positive on the whole with the unemployment rate falling to 3.8% in the 3 months to March - its lowest level since 1974. One blot on the report was a drop in average weekly earnings 3m/y to +3.2% vs 3.4% expected, but a core reading which strips out the volatile bonus component came in in line with forecasts. In terms of market reaction there’s been little reaction in the pound, with the currency remaining below the $1.30 handle and not far from a 2-week low.

CFD’s, Options and Forex are leveraged products which can result in losses that exceed your initial deposit. These products may not be suitable for all investors and you should seek independent advice if necessary.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Cryptocurrency market update: Ripple, NEO and Monero dump as altcoins' short-lived boom takes a breather

The cryptocurrency market is back to the recent default settings; painted red everywhere. This comes after corrected higher three days in arrow. Ethereum, the largest altcoin in the market tested $215 resistance.

More Cryptocurrencies News

Monero price analysis: XMR/USD reverses Wednesday’s gains, goes below $74.0

Monero (XMR) is one of the biggest losers among top-20 coins. XMR/USD has lost nearly 10% since the beginning of Thursday to trade at $73.64 by press time.

More Monero News

Ripple market overview: XRP/USD goodbye $0.32, hello $0.28

Ripple is making a comeback into the rags just as quickly as it ascended to the riches. The gains accrued from earlier in the week majestically cleared multiple resistance levels starting with the simple moving averages.

More Ripple News

TRON market update: TRX/USD collapses below $0.0170, loses over 4% in a matter of hours

TRON (TRX) has partially reversed Wednesday’s gains amid global correction on the cryptocurrency markets. TRX/USD has lost over 4.5% of its value to trade at $0.0166 by press time.

More Tron News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Rangebound trading and September blues come upon the crypto market

Bitcoin finishes the week with marginal losses. The first digital currency recovered from the recent low of $9,886 but stayed in the red zone as of the end of the week.

Read the weekly forecast

BTC

ETH

XRP