Before we start, has just hit a new record at $220, up more than 4000% this year. has a virtually unblemished track record as a store of value for over 6000 years but that didn’t matter in 2017 as dug into its market. Will it be the same in 2018?
The was the top performer Monday while the lagged for a second day. is up next. There are 10 open trades ahead of this week’s busy set of central bank meetings and key US data.
Bitcoin Weekly 2015-2016
The week started off with all eyes on Bitcoin as on the CBOE had a successful launch. Volume was at 7000 contracts, which is only $119m notional but it certainly can’t be called a failure. More importantly, Bitcoin prices climbed above $17000 and were relatively stable (at least by BTC standards). Ultimately, those are all good signs for the near-term.
Bad signs, meanwhile, continue to mount in gold. We have no doubt that many gold investors or would-be investors have turned to crypto. At the margins, that means less excitement and buying in precious metals. Anything could change in crypto at a moment’s notice but for now, the outflows from gold are considerable and speculative net longs are at 4-month lows.
Technically, the trend is increasingly weak. Last week, gold broke below the October low of $1260 and slid another $12 to $1240 on Monday. The July low of $1200 is a major support level that needs to hold if gold is going to rebound in the months ahead. If not, it could get ugly for the old-fashioned analog store of value.
Looking to the short-term, housing investments have been better than gold for the past five years of the QE era. That’s expected to continue in 2018, even as regulators find creative ways to curb speculation. One spot to always watch is Australia where Q3 house prices are due. Through Q2, prices were up 10.2% y/y and 1.9% q/q. That’s expected to cool to 8.8% y/y and +0.5% q/q. Look for a small reaction in .
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.