Two very different markets are correlating right now, these are crypto and stocks. The first is of Asian equities led by China which has seen Chinese stocks take off, making gains of more than 3 percent-the highest since November last year. The CSI 300 index, which lists China’s most valued stocks in the counters of technology, telecom, healthcare, and finance rose by 3.2 percent as well.
The gains in Asia did not stop there, as Hongkong’s Haung Seng index, which lists stocks of the region’s largest corporations made gains of 1.7 percent, while surging energy stocks helped Tokyo’s Topix to close the market on 1.6 gains.
Similar good fortune was experienced in the crypto-currency markets as well; as Ethereum- the world’s second largest crypto-currency by market capitalization- surged by an impressive 14 percent against the US dollar. Bitcoin, the largest crypto-currency by market capitalization was also in the green, registering a percentage gain of 3 percent Monday.
In general, the crypto-currency market gained a whopping $5 Billion to its market capitalization, with all coins that had showed signs of a rebound from their lows, bottoming off. It comes as no surprise that both the crypto and the Asian markets have shown an impressive recovery on the very day that the financial times reported a positive investor outlook on the US-China trade talks.
US president Donald trump hinted at a positive outcome from the talks through a tweet that read;
“Important meetings and calls on China Trade Deal, and more, today with my staff. Big progress being made on soooo many different fronts! Our Country has such fantastic potential for future growth and greatness on an even higher level!”
— Donald J. Trump (@realDonaldTrump) February 17, 2019
Crypto-currencies, which were ranging before the trump tweet; reacted very positively with Bitcoin blasting from $3623 to $3757 in less than 20 hours. The current crypto rally may still be operating inside a major downtrend, but the current gains are appreciated either way.
Focus will now shift to Europe after it was reported by Euro news that European markets had surged to four-month highs after trump’s tweet. A Bullish European market could also boost crypto prices.
You, therefore, better fasten your seatbelt, we might be in for a quite a ride the next couple of weeks. “,
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