Bitcoin bulls had a reason to cheer as the price of Bitcoin spiked up by over 15% in a matter of minutes, temporarily crossing the $5k mark. As is often the case with Bitcoin’s sudden price swings, experts are unable to pin down the reason behind Bitcoin’s inexplicable jump to one or a few select drivers. One can only speculate as to the reasons behind this spike, especially when the price has been range bound for a majority of 2019.
While we could be completely wrong again, this price rally could be the first move in a prolonged Bitcoin rally which we expect to see in the later half of this year, owing to a number of price catalysts that we have talked about, including in one of our previous editions. We feel that Bitcoin has finally convinced institutional investors that it deserves an allocation, even if said allocation is a blip in the institutional AUM radar. And one key deterrent that has delayed institutional entry into Bitcoin has been the uncertainty over the entry price for Bitcoin. Institutional investors have so far been playing a waiting game, hoping for the price to crater to a low range and hold firm there. With Bitcoin having found strong support in the low $3ks, any significant price rally can now snowball into a pretty sustained bull run with more and more institutional investors jumping on to the bandwagon.
“Coinbase Ventures Into Cross Border Transfers” American major cryptocurrency exchange Coinbase has expanded into cross-border payments. Coinbase customers can now transfer funds to any user with a Coinbase account around the world using Ripple (XRP) and the exchange’s stablecoin USDCoin (USDC) with no fee. The development reportedly enables users to send and receive money instantly, as well as convert them into local currency.
“Crypto Bills in the House” Two pro-cryptocurrency bills were introduced to the US House requesting the CFTC, in consultation with the SEC, produce reports to inform lawmakers about crypto. The bills aim to gather information on how to encourage adoption of cryptocurrencies, create more competitive regulation, improve laws for crypto exchanges, and prevent price manipulation. Both bills would compel the chairman of the Commodity Futures Trading Commission (CFTC)— in consultation with the Securities Exchange Commission (SEC) chairman—to submit a report with recommendations and policy prescriptions around cryptocurrency to several Congressional committees, including those responsible for banking and financial services.
“Paypal Invests in a Crypto Startup” Huge payment merchant giant PayPal has made their first investment into the blockchain space. A blockchain startup that focuses on utilizing the technology to give users greater control over their digital identities. The investment has come as part of an extension to what is known as a Series A funding round in the startup – Cambridge Blockchain. The first round had raised a total of $7 million back in May 2018.
“XRP Exchange-traded Product in Switzerland”An exchange-traded product (ETP) tracking the price of the XRP cryptocurrency has gone live on Switzerland’s primary stock exchange SIX. Amun AG, the maker of the product, announced the news on Tuesday, saying that the XRP ETP had started trading on the exchange under the ticker symbol AXRP. The firm first revealed it would launch an XRP ETP last month. Hany Rashwan, co-founder and CEO of Amun AG told CoinDesk at the time that his firm already had an approval in place from SIX to issue the product. With today’s launch, Amun AG now has a total of four cryptocurrency ETP products listed on the SIX exchange. Last month, the firm launched an ethereum (ETH)-based ETP (AETH). The month prior a bitcoin (BTC)-based ETP (ABTC) went live, and the firm launched the Amun Crypto Basket Index ETP under the ticker symbol HODL in November.