The Power Of Pressure

Today’s Highlights

• Pound on Johnson
• Lots of Action
• Crypto Social Market

Please note: All data, figures & graphs are valid as of July 24th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Later today, Boris Johnson the new Prime Minister of the UK will give his inauguration speech. Surprisingly, the British Pound is looking quite positive about this event.

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ECB Meeting

The Eurozone PMI figures that we discussed yesterday actually came out even weaker than the weak forecasts that analysts had set and the Euro is having a rather mixed reaction.

Tomorrow the European Central Bank will announce their interest rate decision, and though most analysts don’t think they will make any changes, there’s no denying that they’ve been extremely dovish lately and have even hinted at bringing back their quantitative easing program.

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Later today there is a slew of interesting earnings announcements including Caterpillar, Tesla, and Facebook. For big tech, however, there does seem to be some things that are more pressing than earnings at the moment.

Crypto Social Market

As we mentioned above, the power that social media can have on the markets is nothing short of incredible, but in truth, it goes much deeper than exerting pressure on companies or getting a response on issues. In some cases, it can directly affect prices.

In this article from Reuters, we can see that several forward-thinking companies are already offering proprietary services that are designed to understand the crypto sentiment on social media apps like Twitter, Reddit, WeChat, and Telegram and in some cases deploying bots to trade based on this data.

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Leading the charge on Twitter is a company called The Tie, who’s CEO I had the pleasure of meeting yesterday. Here we can see him speaking to Block TV specifically about the data they’re compiling and what can be learned from it.

As we’ve discussed many times before, the evaluation metrics for cryptoassets are still very much under construction. As a large portion of the value is derived from the network effect, I believe that this type of social sentiment data will play a much larger role in cryptoasset evaluation going forward.