Digital Diehards

Exactly 10 years ago today Satoshi Nakamoto set in motion his plan to create a new form of money that is independent of any government or bank.

The evolution of bitcoin and blockchain over the last decade has been so remarkable that I'm sure even Satoshi himself could not have imagined the impact of his work.

Happy Birthday, Bitcoin! 

Today's Highlights

  • Flash Crash Rips the Currency Markets
  • Shut Down: Day 13
  • Crypto Flash Setup

Traditional Markets

Yesterday afternoon, shortly after the markets closed Apple came out with a shocking report.

Shares of the world's largest company fell about 7% in afterhours trading and are expected to open this morning with a huge gap down.

(Click on image to enlarge)

At some level, just about every investor in the world who holds a stock portfolio has some exposure to Apple shares, that includes most pensions and investment portfolios in the world. Apple has already been under pressure from the tech rout but this new leg down bumps up the severity and further jeopardizes the entire market.

It's not just stocks that are affected by this either. Shortly after Apple's announcement, there was some very peculiar activity in the currency market.

The flash crash impacted almost all currencies but was felt strongest in the Japanese Yen. Japan is still closed for the holiday, so the thin liquidity, especially during the wee hours of the morning when most other countries are sleeping, was also said to have been a trigger for this flash crash.

As you'll recall, the flash crash that happened in the British Pound on October 7th, 2016, also happened during the early morning Japanese session when volumes are lowest.

Here we can see the scope of the crash in the USDJPY on three different time scales.

(Click on image to enlarge)

Also, the second most affected currency seems to be the Turkish Lira. In this chart we can see the USDTRY repelling away from 200 day moving average (blue line), that it has been testing for a few weeks.

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Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of ...

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