Will companies support Bitcoin?

20 August, 2019

Will companies support Bitcoin the way retailer investors did it?


The bulls once again supported Bitcoin without letting it drop below $9,700. At the beginning of the week, Bitcoin got a new impetus for growth due to the news from Bakkt, which received permission to launch delivery futures. Thanks to the support from the news background, Bitcoin jumped above the 50-day moving average. On Tuesday morning, the BTC traded above $10,800, showing an increase of almost 3% over the last 24 hours and by 15% above last Thursday’s low.

Actions of institutional investors will now come to the fore. Recently it became known that the largest American crypto exchange has bought the custodial service Xapo. Thus, Coinbase becomes the largest institutional crypto custodian in this sector. CEO of Coinbase Brian Armstrong stated that every week institutional investors invest $200-400 million in crypto assets. Basically, it is due to Bitcoin, which is also confirmed by the price dynamics of cryptocurrencies, which feel much worse than the first cryptocurrency.

The Crypto Fear & Greed index shows a rebound from extreme values of fear, which indicated an excellent opportunity to buy an asset. Last week the indicator reached 11, whereas now it is approaching 40. The higher the value, the stronger the demand for the asset and the closer the correction moment is.

Bitcoin mining is now at its historic high of 10.1835T. Over the last 3 months, it has grown by almost 52%. At the moment when the historical maximum of $20,000 was reached in December 2017, the difficulty of Bitcoin mining was five times lower. At that time, the low scalability led to huge logs of unconfirmed transactions, and now the market is ready to offer a much larger hashing power.

The hype surrounding Libra has subsided noticeably, but the project has created a momentum for the market. Recently, it became known that Binance is already planning to launch the Venus project: regional stablecoins will be linked to national fiat currencies. It is quite likely that success in this direction will be achieved not by large corporations, which are forced to fully comply with the strict requirements of the U.S. regulators, but by more flexible financial companies, which will have the opportunity to look for softer jurisdictions.


Source link  
More Brexit votes, pound volatility?

At the start of trading on Monday, the British pound fell 0.6%, as a crucial Saturday vote on the new Brexit plan was postponed. Prime Minister...

New Chinese stimulus promises

China continues to struggle for economic growth, as it aims to resist the effect of trade disputes with the U.S. The editor of an influential...

Best currency rally heading for a crash

The analyst who most accurately predicted the ruble's rally in the second quarter is now its most pessimistic forecaster. The Bank of Russia's switch to...


Trade truce 2.0, or new currency wars?

Tensions around trade wars subsided following news reports that both the US and China leaders are set to hold an extended meeting...

Experts predict where crude could go

A top military aide to Iran's supreme leader warned over the weekend that The first bullet fired in the Persian Gulf will push oil prices above...

Morgan Stanley sees global recession

Investors are overlooking the threat posed by the U.S.-China trade war, which could send the global economy into recession in less than a year...


Oil at $100: how will it affect economy?

Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects...

Oil sector will lose 95% by 2050

Companies in the oil and gas sector, including large groups such as Shell, BP and Exxon, could lose 95% of their value by 2050 if governments...

The US economy recession by 2021

In a recent survey, most business economists believe the U.S. will fall into recession by 2021. Days after the market euphoria over a ceasefire in the...

  


Share it on:   or