Hi Everyone,
The next evolution of the Internet is in the works.
Internet rebel Kim Dotcom has recently announced that he’s working on a new project called Megaupload 2.0. Many of you will recall a site called Megaupload from a few years back that was shut down on copyright infringement issues as it allowed people to stream Hollywood movies without Hollywood’s permission.
You’ll recall, the sight had a big orange play button and would allow you to stream for 40 minutes, before prompting to pay for the service or wait.
Kim has been battling with the United States in court ever since, despite being a citizen and resident of New Zealand but all the while has been working on new ways to revolutionize the Internet.
The new site, also called MegaUpload 2.0 & BitCache will connect directly with your Bitcoin wallet and will allow content creators to set a price for people to consume their songs, videos, games, or any other type of media or files.
This is the beginning of the next level for the internet and for integration of blockchain technology into our daily lives. The creators controversial past will likely be an obstacle but just the concept itself is extremely exciting.
-Mati
Today’s Highlights
- Trump-a-thon
- New Risk in France
- Bitcoin Bites Back
Please note: All data, figures & graphs are valid as of April 3rd. All trading carries risk. Only risk capital you’re prepared to lose.
Market Overview
The stock markets that have been very upbeat so far this year have ended Q1 on a low note, with Wall Street dipping into Friday’s close. However, the Asian markets have picked up the temp this morning and the European opening bell has chimed in with a positive tone.
Investors around the world seem to be growing immune to Mr. Trump’s rhetoric and going forward will want to see action from the White House before making any sudden price shifts. Even the ongoing saga attempting to link Trump & Putin seems to be having increasingly less impact on global traders’ nerves and unless something concrete happens the reactions should remain confined to US markets only.
Fingers are crossed for the upcoming meeting later this week between Donald Trump and Chinese President Xi Jinping. Xi will be flying to Florida on Thursday and is scheduled to meet with the Donald at his Mar-a-lago estate. Top of the agenda is rumored to be North Korea.
Trump has suggested that he can take care of Kim Jong Un all by himself if China doesn’t cooperate but of course it will be easier to deal with them if their closer neighbor is on board.
This meeting will only have major reverberations in the market if…
a. talks fall apart completely like Trump’s silly spat with Mexican President, EPN.
b. discussion turns to Trump’s many, many, many negative remarks about China that were made on the campaign trail.
If we start hearing the words “currency manipulation” or “trade war” or anything similar from either state-head global markets could take a hit.
If the meeting is successful, it could certainly spark renewed Trump-on sentiment in the markets and perhaps even cause a rebound in the US Dollar, which is now trading in the middle of its range.
New Euro Risks
All European eyes are currently fixated on the upcoming elections in France. Round one will take place on April 23rd, where all 5 candidates will have their shot. If nobody takes an outright majority in this vote, which is the most likely case, then the two front-runners will go head to head on May 7th.
The major risk to the Eurozone is populist Marine La Pen. At the moment she is expected to go head to head against Macron, or possibly Fillion. Nobody really expects a La Pen victory and the markets for the moment remain confident that the anti-EU candidate will not come to power.
However, from the bottom of the boards, another populist named Jean-Luc Melenchon has been rising steadily and is now just one point below Fillion. Melenchon is a populist of a different breed then La Pen but only slightly less dangerous to the EU.
If Melenchon manages to keep the current pace, he could potentially rise to number two by April 23rd, putting him head to head against La Pen.
Now, markets are confident in Macron or Fillion beating La Pen, but a Melenchon La Pen race would certainly turn out to be a rock and a hard place.
Watch the polls very closely. From now, any victory for this up and comer could have a direct influence on the EURUSD.
Bitcoin Bites Back
The trend we’ve been tracking over the past two weeks with Bitcoin losing ground to the second most popular cryptocurrency has been sharply reversed this morning.
here we can see BTC in white and ETH in red since Friday…
There could be several reasons for this move. The MegaUpload 2.0 project could possibly have something to do with it. The fact that Dotcom is looking to build his next beast on the Bitcoin Blockchain gives a lot of confidence to the network.
But also, there was some breaking news out of Japan that’s been causing tech-minded Asian investors to celebrate.
It’s important to remember that cryptocurrencies don’t trade like traditional assets. This is an entirely new market and inter-market correlations are just starting to take shape.
Trade with others. Join eToro community and use experience of other traders!
One thing is clear, that Bitcoin and Ether have been battling for dominance over the course of March. Bitcoin, being the older and more established one, is having no trouble fighting back so far in April.
Let’s have an awesome week ahead!
Best regards,
Mati Greenspan
Senior Market Analyst
