GOLD, BITCOIN, ETHEREUM React to Italy Election Over Three Day weekend; Volatility is Back (5/29/18)


NEW THIS WEEK – A WHOLE NEW FORMAT FOR BITCOIN VS GOLD, INCLUDING A LINK TO THE NEW CME ETHEREUM INDEXES! 

By Bill Taylor, Contributor

We compare the price of Bitcoin, Ethereum, & Gold, using the CME Bitcoin Indexes (BRR & BRTI) and the CME Ethereum Indexes (ETH_RR_USD) & (ETH_RTI_USD) for reference.

5/29/18 Closing Prices:

Bitcoin:  $7,423.04 (-$70.90) (from Friday’s close)
Ethereum:  $559.56  (-40.92) (from Friday’s close)
Gold:  $1,300  (-$2) (from Friday’s close)
Dow Jones Industrials:  24,361.45  (-391.64)
S&P 500:  2,689.86  (-31.47)

Nasdaq Composite:  7,396.59  (-37.26)

CME CF Bitcoin Reference Rate & CME CF Bitcoin Real Time Index
CME ETH_RR_USD Ethereum Reference Rate & CME ETH_RTI_USD Ethereum Real Time Index

Trading Summary Notes for Tuesday, 5/29/2018

  • Long Memorial Day weekend increases crypto/gold volatility. Market liquidity dries up with lack of trading
  • BITCOIN dips sharply, recover to minor loss (1%)
  • ETHEREUM takes bigger dive. Suffers almost 7% loss
  • GOLD rallies above $1,300, dips below $1,300 settles AT $1,300
  • Italian election casts doubt on Euro’s future; Will Italy leave Euro? Will Spain be next?
  • Confusing. News like that should have made gold rally strongly and help bitcoin
  • U.S./North Korea summit uncertainty keeping things in check? Maybe
  • UNCERTAINTY abounds and is ruling the markets. Summit talks on/off, interest rates up/down, dollar rallies/weakens. UNCERTAINTY causes dull uninspiring markets
  • If gold drops back below $1,300 look for $1,285-$1,290 for support
  • BITCOIN seems “firm” at $7,200-$7,400
  • Currently neutral on gold, long term bullish on BTC & ETH

CURRENT TRADING POSITION:  LONG BITCOIN




Bill Taylor is Managing Partner at Fintek Capital & a frequent contributor to FintekNews