Bloomberg Fuels Crypto Evangelization; Iranians Buy Billions in Cryptos


by | 10th May 2018 | 0 comments

The cryptocurrency evangelization continues in a steady form across markets. This time Bloomberg partnered with Galaxy Digital Capital Management to launch a new Benchmark Index. Bitcoin and Ethereum are gaining believers one index at a time.

Bloomberg and Galaxy announced a new benchmark index: the Bloomberg Galaxy Crypto Index (BGCI). It will track the performance of the most liquid portion of the crypto market.

According to a Bloomberg press release, “the BGCI is market capitalization-weighted and measures the performance of ten USD-traded cryptocurrencies, including Bitcoin, Ethereum, Monero, Ripple, and Zcash.”

Alan Campbell, Global Product Manager for Bloomberg Indices, said that “today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies.”

Bitcoin and Ethereum will represent 30% each one, while Ripple will be the 14.14%, and Bitcoin Cash 10.65% of the index. The other cryptocurrencies will be Litecoin (6.11%), Dash (1.67%), Monero (1.66%), Ethereum Classic (1%) and Zcash (1%).

Iranians love Cryptos

While you were watching Donald Trump saying the US is leaving the Iran Nuclear deal, Iranians were sending money outside their country to buy cryptocurrencies. Let’s say 2.5 billion according to the Iranian English-language daily Financial Tribune.

According to the report, Mohammad Reza Pourebrahimi, Chairman of the Economic Commission of the Parliament of Iran stated that “despite the fact that a minority of the people of our country are customers of virtual currencies and their new markets, more than $2.5 billion have fled the country following their purchase.”

Experts are speculating that Iranian move is all about circumvent US economic sanctions. Is it a policy change after the Central Bank of Iran (CBI) banned financial institutions from processing cryptocurrency in April 2018? Time will tell.

Bitcoin bounces at 9.000; what else?

After falling three consecutive days, the Bitcoin bounced at the 9,000 level and it closed positive on Wednesday at 9,300. BTC/USD is now pricing at 9,290,70, slightly negative on Thursday.

As the pair is trading almost flat on Thursday, we can expect more developments in the European session. The cross seems to have performed a hammer candlestick on Wednesday, but Thursday should confirm a bullish reversal from the 9,000 level.

If the pair consolidates above the 9,200 level, next resistances will be at the 9,500. Then, the 9,770.00 static resistance and the 9,900.00 area. The 10,000 is a dream for now.

To the downside, with a break below 9,000, the crypto will test the 8,830, May 1 low, and 8,660, April 25 and 26 lows.

Ethereum closed Wednesday with a hammer candlestick; bullish?

ETH/USD Daily Chart - 10-05-18

Ethereum closed positive on Wednesday after performing three negative days in a row. ETH/USD bounced at the 710.00 again to trade back at 750.00. It is now moving flat on Thursday.

Wednesday daily candle is a hammer, it could suggest a bullish reversal, but it is too soon to say that. The truth is that the ETH/USD bounced at 710.00, confirming a technical bullish move after the 710.00 test at April 24 highs.

To the upside, the pair needs to close above Tuesday high of 776.00 to confirm more bullish appetite. Then, the unit will see resistances at the 800.00 area, at 830.00, 900.00 and then the 1,000 significant mark.

To the downside, if the pair falls below the 710.00 level, it will find next supports at 665.00, 640.00, and 600.00. Then, 557.00 is the most critical.


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