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Bitcoin Comes Through With Flying Colors In Its First Stress Test

Banking giant, JP Morgan’s latest report reveals that Bitcoin was the fastest recovering asset from the Covid-19 slump back in March.  Bitcoin Scores Big In Its First Stress Test Cryptocurrencies, specifically Bitcoin has been often deemed by the highest officials as a currency used for illicit activities. However, with every season that passes by individuals

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JP Morgan

Banking giant, JP Morgan’s latest report reveals that Bitcoin was the fastest recovering asset from the Covid-19 slump back in March. 

Bitcoin Scores Big In Its First Stress Test

Cryptocurrencies, specifically Bitcoin has been often deemed by the highest officials as a currency used for illicit activities. However, with every season that passes by individuals have been changing their perspective about the king coin. United States’ banking giant, JP Morgan Chase’s CEO Jamie Dimon is one among them. Previously Dimon had denounced Bitcoin by calling it a fraud. But things took a 180-degree turn for the company as its latest report suggests that Bitcoin was the most “positive” looking assets in the recent days.

A report titled, “Cryptocurrency takes its first stress test: Digital gold, pyrite, or something in between?” was drafted by cross research analyst Nikolaos Panigirtzoglou and Joshua Younger who is the head of the United States interest rate derivatives strategy, both from JP Morgan.

Previously in March, the Covid-19 pandemic got the entire world in shackles, further pushing several markets across the globe into its coarsest state. The crypto market was one among them as the price of Bitcoin came crashing down to $4,647 during March. This significant dip had left several questioning if the king coin was really a safe-haven asset. However, the currency’s recovery from the dip urged the JP Morgan analysts to point out that cryptocurrencies have “longevity as an asset class.”

They further added,

“…price action points for speculation than medium of exchange or store of value.”

BTC
Source – TradingView

While Bitcoin retrieved its losses due to Covid-19 towards the end of April, other assets were taking more time than the king coin. However, equity markets also headed to the path of recovery quite quickly and have almost restored to its highs before the pandemic.

During its 12 years of existence, JP Morgan analysts believe that the March dip was the king coin’s first stress test and Bitcoin got “mostly positive” results. Bitcoin has been deemed as a highly volatile currency and also exhibited the same during the pandemic. However, it turns out that other traditional asset classes also underwent a similar rate of volatility.

btc

Additionally, the report suggested that Bitcoin has been faithful in sustaining its price above its production costs. The report further read,

“There is little evidence of run dynamics, or even material quality tiering among cryptocurrencies, even during the throws of the crisis in March.”

Despite the timely recovery, Bitcoin seems to be hovering close to 10K but has been unable to breach it. At the time of writing, the coin was trading at $9,432.04 with a 0.59 percent drop in its price in the last 24 hours.

Source: https://coingape.com/bitcoin-comes-through-with-flying-colors-in-its-first-stress-test/

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Bahamas launches the world’s first official central bank digital currency.

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Bahamas launches the world’s first official central bank digital currency. – Coinnounce




























The small Caribbean island Bahamas has launched the world’s first official central bank digital currency. The Bahamas launched the Sand Dollar officially after over two years of pilot tests.

The Caribbean island Bahamas has overtaken economic giants to launch the world’s first official central bank digital currency. The Bahamas launched the Sand Dollar officially after over two years of pilot tests. The Central Bank of The Bahamas (CBOB) announced the official launch of the CBDC on social media. The central bank has partnered with several local financial institutions on the rollout, including electronic payment firm Kanoo, mobile money company Cash N Go and e-commerce platform MobileAssist.

The central bank seeks to advance more inclusive access to regulated payments with its CBDC. 

With the Sand Dollar, the CBOB is seeking to “advance more inclusive access to regulated payments and other financial services for under-serviced communities and socio-economic groups as well as to reduce service delivery costs and increase transactional efficiency for financial services across the Bahamas.” The central bank has developed the Sand Dollar to be transferrable via mobile phones, making it easy to use for the residents. The Sand Dollar works offline, further making it a good payment choice for those without an internet connection. 

Central banks continue to explore CBDCS.

As reported earlier, the Swiss National Bank (SNB) and the Bank for International Settlements (BIS) plan to test a central bank-backed digital currency (CBDC) by the end of this year. Central banks across countries are experimenting with digital currencies. Earlier, the U.S. Federal Reserve chairman, Jerome Powell, suggested the United States was waiting to get the right proposals in place, rather than becoming the first to launch in regard with a CBDC. Several other major central banks, including the Bank of Japan, the Philippines’ central bank, are working on a CBDC.

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Jai Pratap

Jai Pratap

A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.


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Source: https://coinnounce.com/bahamas-launches-the-worlds-first-official-central-bank-digital-currency/

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Bitcoin is Sucking Liquidity Out of Every Major Market, Charts Show

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On Wednesday, Bitcoin evangelist and Wall Street investor Raoul Pal published a series of charts that pitted the cryptocurrency against major financial markets.

Every graph appeared identical to one another, for they showed how the mainstream assets/indexes were trending lower against Bitcoin, to a point where they all tested a medium-term support trendline. They included gold, the Nasdaq Composite, and its sub-indexes/stocks, which include KBW Bank Index, Treasury Bond ETF Fund, silver, Amazon stock, and others.

gold, bitcoin, xauusd, btcusd

Gold is looking to attempt a negative breakout against Bitcoin once it closes below the rising trendline support. Source: Bloomberg Terminal

Mr. Pal noted that every index/asset was looking to break bearish on the support trendline. The prediction pointed towards more strength for Bitcoin as it compared the crypto with a “supermassive black hole that is sucking in everything around it and destroying it.”

“You see, gold is breaking down versus bitcoin,” Mr. Pal added. “And gold investors will flip to BTC. The Nasdaq is next. Retail specs are going to flip to bitcoin as it eats techs lunch.”

nasdaq, nasdaq composite, bitcoin, cryptocurrency, btcusd, ndx

Like gold, Nasdaq is also looking to break lower against Bitcoin. Source: Bloomberg Terminal

Weaker Sub-indexes

Some of the Nasdaq’s sub-indexes already broke below the Ascending Trendline support. The KBW Bank Index (NASDAQ: BKX), a benchmark stock index of the banking sector, fell to its lowest levels against Bitcoin as worries over an increase in loan defaults stressed the financial corporations.

Read Further: 3 Biggest Bitcoin Takeaways from JPMorgan’s Q3 Earnings

Furthermore, the iShares 20+ Year Treasury Bond (NASDAQ: TLT) depreciated against the rising Bitcoin prices, adding to the speculation that the US economy is heading for a prolonged period of lower interest rates. The Federal Reserve has already committed to keeping them near-zero up until 2023.

us bonds, TLT US Equity, iShares 20+ Treasury Bonds, Bitcoin

iShares 20+ Year Treasury Bond ETF dips against Bitcoin. Source: Bloomberg Terminal

The analogy was the same for the G4 Central Bank Balance sheet, the Refinitiv/CoreCommodity CRB Index, and Apple. Everything fell against Bitcoin.

“The macro, flows, technology, demography and societal strains have all converged to this moment in time and the definite answer from markets is Bitcoin,” wrote Mr. Pal. “I get this sounds a little evangelical but I’m struggling to see it any other way right now.”

Bitcoin to $20,000

As money keeps flowing into the Bitcoin market, Mr. Pal also indicated that the cryptocurrency could soon swell back to its previous record high of $20,000.

cryptocurrency, Bitcoin, BTCUSD, XBTUSD, BTCUSDT, Bitcoin Dominance

A break above the $14K level puts Bitcoin en route to $20K, as per Raoul Pal. Source: BTCUSD on TradingView.com

As per Mr. Pal, there is not any historically concrete resistance level above $14,000.

Earlier in 2017, it took BTC/USD only a week to pump from lower $13,000s to as high as $19,891 on Coinbase exchange. While the rally mostly took its cues from the infamous ICO boom, it left little hints for technical chartists to pick their ideal long targets on the next breakout above $14,000.

“I fully expect new all-time highs by early next year at the latest,” Mr. Pal predicted, nevertheless.

Source: https://bitcoinist.com/bitcoin-is-sucking-liquidity-out-of-every-major-market-charts-show/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-is-sucking-liquidity-out-of-every-major-market-charts-show

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5 Reasons For Bitcoin’s Price Surge To New 15-Month High

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At the beginning of October, Bitcoin’s price was particularly indecisive and trading slightly above $10,000, causing many to believe that the unfilled CME gap down at $9,600 would soon be closed.

Fast forward to the current date, October 27th, BTC is trading at $13,400, having just marked a fresh high for 2020. The cryptocurrency added around $3,000 to its value, representing an increase of around 30%.

With this said, this month was also quite eventful. Many things happened, and, as such, let’s have a look at five possible reasons that could have led to this substantial price increase.

PayPal Announcing Support for Bitcoin, Bitcoin Cash, Litecoin, and Ethereum

Undoubtedly, the most important piece of news that came out this month was PayPal announcing support for cryptocurrencies.

Now, PayPal is the world’s largest online payment processor. Data from Statista shows that for the second quarter of 2020, the company has processed over $221 billion. Moreover, the company has a network of over 26 million vendors, and it plans to enable users to spend their BTC at all of them, starting in early 2021.

Additionally, it’s worth noting that PayPal is a widely-accepted payment method, and most of the banks allow transfers from and to the platform. On the contrary, not a lot of banks support Bitcoin transactions, meaning that they would either have to reconsider their policy, or they would have to drop PayPal as a client altogether.

At this point, it’s unclear how this will be resolved, but it’s exciting to see how the situation develops. If one thing is certain, though, it would put Bitcoin and other cryptos at the forefront of an important discussion.

Major Banks Starting to Change Their Attitude Toward Bitcoin

There’s no clearer example here than JP Morgan – one of the world’s largest multinational investment banks.

The relationship between the bank’s CEO, Jamie Dimon, and Bitcoin is one worth following. In 2017, the high-ranked executive said that BTC is afraid and that if he saw any of his traders dealing with it, he would “fire them in a second.”

Well, fast forward a few years, and now the bank is posting bullish predictions on that very same cryptocurrency that Dimon labeled a fraud.

Just a few days ago, JP Morgan said that even a modest switch in capital from gold to Bitcoin could see its price triple.

Number of Publicly-Listed Companies Which Buy Bitcoin Increases

Perhaps as a direct consequence of the above, we can already see an increased involvement from publicly-listed companies.

The biggest buyer who put Bitcoin on its balance sheet became MicroStrategy, with its massive $425 million investment. Its CEO, Micael Saylor, has been particularly vocal about BTC’s merits.

Jack Dorsey’s Square also jumped on the bandwagon, purchasing $50 million worth of Bitcoin earlier this month.

Below is a list of all the publicly-listed companies and their holdings in BTC.

public_companies

Publicly-listed companies putting BTC on their balance sheet is a huge deal for the nascent cryptocurrency, and industry experts have it that this effect will only snowball.

Singapore’s Biggest Bank Reportedly Launches a Bitcoin Exchange

As CryptoPotato reported just today, DBS Bank, a Singaporean multinational banking and financial services corporation and the city-state’s largest bank, has reportedly launched an exchange that offers fiat-to-cryptocurrency trading pairs.

Purportedly, the new exchange would support the “top digital currencies in circulation,” namely Bitcoin, Bitcoin Cash, Ethereum, and Ripple’s XRP. Traders would be able to exchange them against SGD, HKD, JPY, and USD.

More interestingly, the exchange would supposedly only accept financial institutions and professional market makers, as its users. The venue would be regulated by the Monetary Authority of Singapore, which is also its de-facto central bank.

Needless to say, a central bank-backed and regulated exchange aimed at institutional investors should, in theory, facilitate the involvement of larger players in the field.

Uncertainty Around the Upcoming 2020 US Presidential Elections

Undoubtedly one of the most important moments for the global macroeconomic outlook is the upcoming US Presidential Elections, set to take place on November 3rd.

CryptoPotato did a survey, and it turned out that the elections are the biggest concern for Bitcoin investors in 2020.

cryptopotato_survey_btc

It is, perhaps, no surprise that billionaire Paul Tudor Jones III came up with a statement, saying that he likes “Bitcoin even more now than then [when he bought BTC in May].” He also said that it’s going to be the best inflation trade.

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Source: https://cryptopotato.com/5-reasons-for-bitcoins-price-surge-to-new-15-month-high/

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